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To the beginners: Bitcoin should not be equated with real values. Bitcoin is based on nothing but the belief in Bitcoin,
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@boz Bitcoin is based on math and physics :)
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@stefan_21 With regard to physics: electricity consumption is not a value. The opposite is true, so investing in an electricity generator is more advisable. Mathematics is a tool. Bitcoin does not create math and does not enable math. Bitcoin is "generated" by complex finite calculations. If you want to invest in "math", it is better to invest in compute, e.g. NVIDIA, AMD. Bitcoin is based solely on the belief that there is a demand for Bitcoin. Bitcoin itself does not generate any value.
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•@boz I didn't say that either :)
The power consumption or the physical power secures the network. This is why Bitcoin is the most secure computer network in the world. Mathematics determines the rules of the network. This gives rise to properties that no other asset possesses and which generate the value.
Bitcoin has no intrinsic value in the traditional sense. This is why many people (like you) automatically assume that it must be worth nothing.
However, intrinsic value is only relevant for assets without monetary properties. Then you can calculate a subjective expected return.
Bitcoin has properties that none of these assets have. Properties that make it the perfect store of value. And because it is the asset with the best properties, it is valuable.
If you're now thinking to yourself, "what nonsense is he talking", take a look at gold, for example.
Do you think gold, with a market capitalization of 22 trillion, is by far the most valuable asset in the world because it is used to a small extent in the industry? Or because it is used as Schnuck? Or is it used as jewelry precisely because it is valuable?
Shouldn't steel, which has many more industrial applications and a higher intrinsic value, take on this role?
It is the properties of gold, such as scarcity, durability, etc., that have made it what it is.
Only Bitcoin fulfills all these characteristics better than gold. It is more transportable, more divisible, absolutely limited, forgery-proof, etc.
The power consumption or the physical power secures the network. This is why Bitcoin is the most secure computer network in the world. Mathematics determines the rules of the network. This gives rise to properties that no other asset possesses and which generate the value.
Bitcoin has no intrinsic value in the traditional sense. This is why many people (like you) automatically assume that it must be worth nothing.
However, intrinsic value is only relevant for assets without monetary properties. Then you can calculate a subjective expected return.
Bitcoin has properties that none of these assets have. Properties that make it the perfect store of value. And because it is the asset with the best properties, it is valuable.
If you're now thinking to yourself, "what nonsense is he talking", take a look at gold, for example.
Do you think gold, with a market capitalization of 22 trillion, is by far the most valuable asset in the world because it is used to a small extent in the industry? Or because it is used as Schnuck? Or is it used as jewelry precisely because it is valuable?
Shouldn't steel, which has many more industrial applications and a higher intrinsic value, take on this role?
It is the properties of gold, such as scarcity, durability, etc., that have made it what it is.
Only Bitcoin fulfills all these characteristics better than gold. It is more transportable, more divisible, absolutely limited, forgery-proof, etc.
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•7Mon
@stefan_21 So why isn't ETH better, more popular?
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@boz because ETH does not have the properties that Bitcoin has. ETH is not decentralized, not censorship resistant, has a third party risk, in the last 7 years the supply policy has been changed 7 times because a central company - the ETH Foundation - wanted it etc.
ETH has more in common with a central bank than with Bitcoin.
ETH has more in common with a central bank than with Bitcoin.
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@stefan_21 Gold has unique physical properties and is fundamental for numerous areas of application, a fundamental element for industrial applications. And gold is significantly rarer than iron, from which steel is made.
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@boz Isn't that the case with every currency?
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@boz the industrial use of gold is very low compared to the market cap. The central banks don't buy gold either because it can be used to a small extent in industry.
As you say, gold is much scarcer than iron. Ergo, the value of gold must have something to do with its properties :)
It's the same with BTC.
As you say, gold is much scarcer than iron. Ergo, the value of gold must have something to do with its properties :)
It's the same with BTC.
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•7Mon
@stefan_21 The special thing about gold is its unique chemical and physical properties, which cannot be replicated. Nothing about Bitcoin is real or even physical, except for its electricity consumption.
Gold was there before us, gold will be there after us. Gold survives the fall of societies and empires. It survives wars and disasters. Bitcoin has not yet had to survive a test.
Gold was there before us, gold will be there after us. Gold survives the fall of societies and empires. It survives wars and disasters. Bitcoin has not yet had to survive a test.
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@boz What characteristics do you think that would be?
In contrast to gold, Bitcoin is absolutely limited, much more transportable, easier to store - yes, you can even transport Bitcoin in your head. Storing 0.1 BTC costs no more than storing 10,000 BTC - unlike gold, etc.
Bitcoin's properties cannot be replicated either. I once wrote an article about Bitcoin as a perfect store of value. If you like, you can read it at https://getqu.in/G8t0Nm/ :)
In contrast to gold, Bitcoin is absolutely limited, much more transportable, easier to store - yes, you can even transport Bitcoin in your head. Storing 0.1 BTC costs no more than storing 10,000 BTC - unlike gold, etc.
Bitcoin's properties cannot be replicated either. I once wrote an article about Bitcoin as a perfect store of value. If you like, you can read it at https://getqu.in/G8t0Nm/ :)
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