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RE: Is the DAC concept dead?

in #cryptocurrency8 years ago (edited)

Bitcoin is not just a currency similar to fiat, it's a also a mechanism to move value around. The cost of a single Bitcoin transaction currently stands at $10. Taking into account only miners' profitability, instead of the whole system profitability, is completely flawed.

I am not saying the market evaluation is wrong. I'm just pointing out the paradox that we currently witness. When you buy BTC or ETH, all you do is bet on the fact that there will be another person in the future who will buy it from you at a higher price. This has nothing to do with actual economical inefficiency of those systems. We have high market evaluation despite those inefficiencies.

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instead of the whole system profitability

what do you mean and how do you measure that? What is eg the whole system profitability for the dollar in your terms?

When you buy BTC or ETH, all you do is bet on the fact that there will be another person in the future who will buy it from you at a higher price.

When I am trading @ forex I do the same bets and it has something to do with the market assessments of the relative economical (in)efficiencies of the systems :-)

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