Crypto Has No Fundamentals or Intrinsic Value? Total BS!
A common argument levied against the crypto market is that virtual currencies like Bitcoin or Ethereum have no fundamentals or intrinsic value. That is, the blockchain reward system is built out of thin air. Some have even accused crypto assets of being backed by "vapor."
These arguments are of course baseless and only prey on fear and ignorance. Unfortunately, critics are successful in turning potential investors away from the blockchain and the opportunities that it engenders.
Part of their success revolves from well-meaning crypto advocates getting sucked into strawman arguments and other logical fallacies.
To get straight to the point, here's my recommendation!
If you ever get locked into a debate about whether or not cryptocurrency assets have intrinsic value, simply reply:
"Yes, crypto tokens do have intrinsic value, which is found in their proven ability to disrupt traditional investing markets!"
No one who is being intellectually honest can deny this fact!
I further explained the cryptocurrency market's intrinsic value in my nationally-distributed InvestorPlace.com article, "The Not-So-Crazy Case for $10,000 Bitcoin." On September 1, 2017, I wrote the following:
On the surface, the idea of $10,000 Bitcoin sounds crack-smoking ridiculous. At such a meteoric level, the digital coin’s price tag would exceed Alphabet Inc (NASDAQ:GOOG) or Amazon.com, Inc. (NASDAQ:AMZN) tenfold. These are groundbreaking tech firms. In sharp contrast, cryptocurrencies are speculative financial vehicles.
But one of the critical reasons why Bitcoin prices continue to astonish us has nothing to do with financial valuation. Rather, cryptocurrencies are “timeless.” Bitcoin is the first open-source investment in human history. You can be anyone, anywhere, anytime — so long as you have access to the internet.
In comparison, Wall Street operates on a shockingly limited schedule. The markets open from 9 a.m. to 4 p.m. EST. This makes trading on the West Coast quite troublesome. In addition, the stock market isn’t open on weekends, and American holidays.
Compare that to Bitcoin, which is open 24 hours a day, seven days a week. It doesn’t care about holidays. If you want to trade during normal business hours, fine. If you want to trade in your pajamas at 3 a.m., have at it!
Most importantly, because Bitcoin trades 24/7, it has nearly four times the trading hours of a Wall Street stock. And because cryptocurrencies trade on the weekends and holidays, the extra mileage adds up quickly.
Put another way, one year of Wall Street trading could be the equivalent of four or five years of cryptotrading!
Awesome post. Resteemed followed and upvoted please do the same to me.
Love this post! Definitely following and upvoting! :D Keep up the good work!
@shredz7
If I understood your article well then I respectfully disagree with you on few elements. When you say "crypto" in the title I assume you mean the whole DLT space - blockchains and other technologies and solutions built on top of them (both cryptocurrencies and dapps). Am I right? If so then yes, they have value. Huge value. But please do not mix the value of technology with the value of any given cryptocurrency.
I believe when you said "crypto tokens do have intrinsic value, which is found in their proven ability to disrupt traditional investing markets" you mixed that two aspects. The crypto technology is disrupting markets, right. Faster operations, lower fees, no regulations allow the prices to go up (and down!) very quickly - giving great opportunity for speculation. But it has no relation to the "intrinsic" value of any coin/token you trade. Their value is in the projects behind them - some have it, some don't. To compare with real life - if we create two market halls and one will use USD and another will use Yen (ratio of about 100) they will keep the same value, am I right? If we speed up the circulation of any by enabling some electronic wallets the price will not change in substantial way. So I assume that this is not the "intrinsic" value of any kind.
I still feel "intellectually honest" so please show me where did I made any mistake in my logic.
Furthermore you say "cryptocurrencies are >>timeless.<<". Gold is timeless too. And we use it for thousands of years to exchange value. Cryptocurrencies should use that term in 10 or 100 years maybe - I doubt anyone will be using today's version of Bitcoin with 7 transactions per second speed (and when the supply from mining ends - there will be fees to transfer money) and PoW consuming energy equal to small country . The energy used to protect the network - feat which steem is doing on 21 machines. I predict that either the developers change the code (which takes lot of time but you keep the addresses) or users will migrate to other currency. So at least not every crypto token is timeless. And when I hear that some are scam, created to take people's money and disappear - I doubt they will survive either.
Your comparison to Wall Street is valid though. But has nothing to do with value of any specific coin - this is just new technology allowing speculation worldwide. I still fail to see any intrinsic value of Bitcoin for example. Value - zero or N/A, speculation - 10 000USD
So to just clarify - I see valid points here and there in your text about the technology as a whole and I agree. But if anyone gets the idea of Bitcoin intrinsic value here - might be mistaken. However this doesn't extend to all other cryptocurrencies and tokens.
That's my opinion only of course. I will be very interested if you could show me any loopholes in my process of thinking.
Are you English?
No. Why? Is there any special English logic in my arguments? :)
I'm just impressed by your vigorous prosecution of intentions and arguments that you created for my behalf. I've never seen anything like this before on Steemit, or any social media network!
I'm sorry if I offended you. I just have presented my understanding of your post and presented my arguments. That's all.
I never meant to create any arguments on your behalf. I tried to show clearly when I assume something or deduct from your post.
I'm disappointed that no one did try to argue with my logic.
I'm responding because I assume you are a genuine person and not a troll. The reason no one tried to argue with your logic is that, while you may have made logical statements, your overall arguments are based on points and statements that YOU inferred, and later prosecuted.
You ranted about my calling cryptocurrencies "timeless," for example. I clearly explained this to mean that crypto markets trade 24/7, allowing everyone to trade. You interpreted this literally, which was frankly intellectually dishonest.
I would recommend in the future to stay within the scope of the argument, and not attempt to divert the discussion to a completely unrelated subject.
Also, if you're going to go guns-blazing on someone on Steemit, you should do so with someone of equal reputation. I personally know that many high-powered Steemians have very little patience if you rub them the wrong way, however unintentionally.
Fortunately, I'm not one of them :) Good luck with your Steeming.
Thank you for replying and explaining.
Clearly I misunderstood your main post.
Good luck to you too. :)