Cryptocurrency
Out of context: Reply #207
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- grafician-7
^from the comments of the above video:
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Explain It To Me Like I'm Seven
1 hour ago
Here is a fantastic way to value any crypto: ask yourself if you could write a long term contract in it (from either end). You cannot, for example, write a 30 year mortgage, life insurance contract, supply chain, construction, or employment contract in Bitcoin. Here's why: it wouldn't make sense for either party. Bitcoin is, really, worthless as a currency in this regard. It only works for an immediate exchange. If, for example, you had a small software company and your coders all said, "We renounce the USD [or gold, or coffee beans, or whatever]. We want to be paid in Bitcoin, and no, we will not accept x US dollars worth of Bitcoin. Each of us demand to be paid 2 Bitcoin per year for the next ten years." You couldn't ink that contract, because it would have the potential to bankrupt your company or starve the coders, who would have to quit to work elsewhere (or renegotiate) if Bitcoin falls. The fundamental argument that crypto is legitimate is crushed by the same speculative optimism that attracts people to it. When the day comes that you can sign a mortgage anywhere on planet Earth for Bitcoin that is not pegged to a fiat currency, we'll talk."- i'm not in to BTC but that seems like an unrealistic scenario pegged to an explanation of the labour market under capitalismkingsteven
- It's quite realistic, actually, and is a great way to explain how nonsensical it is as a viable currency at this time in historymonospaced
- coffee beans are up 50% on last year, those coders are insanekingsteven