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by gitfan86 1480 days ago
This is the point that crypto people are trying to avoid. "Don't talk about underlying value. It is very complex".

It reminds me of the mortgage backed securities fraud. "You cannot criticize these complex financial derivatives, they were created by MIT PhDs."
1 comments
chowchowchow 1480 days ago
Yeah I see what darkteflon is saying but he is clearly wrong. And condescending about it to boot. There is a meaningful and discussion worthy difference between “value” (price, really), driven by speculation and hope versus price driven by demand for scarce goods which have utility.
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r3trohack3r 1480 days ago
> (price, really)

Wealth isn’t denominated in currency - price is an exchange rate to another system of faith.

Value is the length people will go to acquire an asset. Utility is only one dimension. And true utility is arguably far less important than perceived utility. Being convinced something like gold has intrinsic utility that justifies its current exchange rate is sufficient to carry the current price regardless of whether that belief is based in reality.

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chowchowchow 1479 days ago
I’m just saying with crypto all we have is its price to go on, plus fuzzy allusions from people like you about how value is beyond the understanding of the unwashed masses.

For an otherwise useless digital token which can only be held or exchanged, its price would seem to be pretty relevant when discussing its value as it literally only has exchange value and no utility.

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gitfan86 1480 days ago
A huge percentage of economic activity has a strong correlation with real world utility. Food, clothing, housing, transportation, entertainment, childcare, medical care, banking services are all dependent on real utility being delivered in a short timeframe. If a top rated restaurant hired a new chef that was terrible and then failed it's health inspection and gave all of its customers food poisoning they would quickly lose perceived value.

I would agree that perceived value is more important than real value, but it is risky to place bets on there being a big difference between the two for a long time.

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