RE: The True Value Of Cryptocurrency
I think the inner value is 0 like every other currency. Only a producing asset class - like a business as a hole (i.e: a litte icream shop - free cash flow of that shop) - or part of a bussines IBM, the stock of that company (free cashflow used to buy back stock and pay dividend.)
what happens if the stock of lets say IBM falls? - the company uses it's FCF (free cash flow) and buys back more share for a cheaper price - so your ownership as a shareholder in the company increases - its a good thing. (If FCF is somewaht stable)
what happens if Bitcoin loses value? it has no cashflow to buy back own coins and reduces the total coin's on the market so your coins become more valuble. It's more like a rembrandt painting - people buying it because the price has gone up so fare. But if you can't find a buyer who is willing to pay more (and also hopes to find anotherone who is willing to pay even more) .. the last one will be f**ed....
- Maybe Steem is a diffrent story. If it attracts enouth users, that will make companys pay for advertisment (like youtube or facebook ) it will produce a fcf and your steem would be like stocks - an part of the bussines . let's hope for the best- but why is steem not introducing something like facebook? - you can add frinds and send private messanges? that would be really popular...
That is a great point I didn't really think of or look to address in the post, I wasn't really trying to explore what deems an underlying asset valuable but the ideologies that cryptocurrency brings to the world, a different way of thinking and dealing with money, resources and services.
While how to peg a value on cryptocurrencies is very much still up for debate I currently see it as a global pool of resources the world has created and anyone can tap into it which is something the world has never seen before. We don't know how to handle it or what to really make of it or what to do with it as yet but once we do things will really get exciting
I do like what you said about the business being the underlying asset of value but would that work for everyone? What if im a software company my code is the only thing that's mine, what if im a service/consultancy business my time and the skill myself and my staff have is in demand and that's really the underlying asset generating the wealth