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by bb88 854 days ago
Gold has scarcity, demand, and a certain use in electronics that puts in a price floor.

BTC has only demand, really. The number of circulating BTC doesn't affect demand for it. But given the number of failed crypto currencies out there, we do know that the True Price of crypto is 0. There is no use for it once demand has whittled away to nothing.
1 comments
kraftman 854 days ago
If I invented my own currency and no one wanted it, the true price of my currency would be 0, but that doesn't then mean that the true price of all other currencies is 0 does it? The demand for USD and the agreement of the population to use it to trade gives it its value, I dont really understand why the same cant be said for people agreeing to trade with BTC, other than that the supply is governed by an algorithm that everyone has agreed upon, whereas the supply of the USD is governed by the government, international politics, lobbying, etc.
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bb88 854 days ago
Answering your questions here. Assuming you're not a crypto shill:

> If I invented my own currency and no one wanted it, the true price of my currency would be 0, but that doesn't then mean that the true price of all other currencies is 0 does it?

For crypto the true price is zero. There are an infinite number of possibility and cryptographically secure numbers. There are an infinite number of potential crypto currencies.

LUNC is pretty much zero. Why? Demand? Was demand the only thing propping up the price? Despite all the potential utility that LUNC gave users? Does the utility of bitcoin only depend upon demand?

https://coinmarketcap.com/currencies/terra-luna/

USD has very high demand, and despite the Democratic president or Republican president, the volatility of the value has been much less than BTC.

> I dont really understand why the same cant be said for people agreeing to trade with BTC, other than that the supply is governed by an algorithm that everyone has agreed upon, whereas the supply of the USD is governed by the government, international politics, lobbying, etc.

I personally didn't agree to the algorithm. The US population didn't vote on it. Why does a minority of people get to affect the price of energy for the majority?

BTC is now at 2% of energy use in the US. So what value do I get other than paying higher prices for my energy when ethereum PoS seems to have worked just fine without issue and uses orders of magnitude less energy?

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