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RE: [Corkboard of Randomness] 📌Flagship Article📌 Your "Two Cents" Are Needed! 🍿
U.S. Dollar
@mental-extract, Technically, USD is back by the "full faith and credit" of the U.S. government. Today's dollar is no longer redeemable in lawful money instead it's consider legal tender. There doesn't seem to be any real intrinsic value behind the U.S. dollar, so why is valuable?Petrodollar & Interest Rates
While the U.S. dollar isn't back by precious metals; it is back essentially by barrels of crude oil. It has kept the U.S. dollar as the world's reserve currency. The Fed managed interest rates to make U.S. treasuries the equivalent value of gold for the oil producing countries. Since the Fed hasn't raised the interest in years, the U.S. treasuries have not been able to keep the price of crude stable.I still think it's speculation, but there's significant chance, if the Fed doesn't raise rates, countries will look to another currency.
Crypto & Blockchain Value
I only have a cursory understanding of blockchain technology. Blockchain technology definitely has a value, but do their tokens hold an intrinsic value? If the token has utility, I would argue yes; it has value.Being decentralized, does that add value? It's a two-sided sword in my view. If there's a glitch or hack, who do we seek help from? Maybe, as blockchain matures, we can have answers to these questions. On the other hand, the government and central banks do not control currency. To many, this is the intrinsic value of cryptocurrencies.
The value of crypto is decentralization and being able to build utility into tokens and platforms. That's my uneducated opinion anyways!
Very good response, take a bow! Well said. So if a principle, like governments controlling the flow or not, could be considered intrinsic value because it depends on the holder's or receiver's perception, could we argue the necessity of a redistribution of wealth also creates intrinsic value?
Redistribution of wealth as an intrinsic value? Well, this is only valuable if decentralized crypto is widely adopted as an exchanged currency. Decentralization, by it's very nature, would remove third parties thus would be a fair distribution of wealth which most likely would grow the middle class! Also, Early adopters may become the new wealth; I'm sure the rich are already hedged against this. Redistribution of wealth is tied closely to decentralization, so I believe; it's an intrinsic value of decentralization.
Okay, cool! There are a good chunk of "wealthy" that got there thru hard work and smarts. These people can be successful in any market they put their mind to. They will be insulated and properly distributed to due to their genuine success. It's the cheats and manipulators that need to be weeded out or poorly compensated in the redistribution. The wealthy are honestly in a position of launching their own tokens and creating their own exchange market they could always live off of if they really wanted to tackle the concept. They have the ability to keep their position, they are just going to be more responsibly tied to the purchasing power of their customers. Which they should be. Too big to fail shouldn't be a thing. You voluntarily sign up to provide a supply in which there is a demand, and you cheat your customer or take advantage of your market somehow, you should feel the cold chills of reality. You shouldn't be able to just throw a ridiculous amount of money at a problem and fix it. Now, some of that is a result of the victims' human greed accepting pay offs, but that's not always the case I don't think. I think all and all, the only intrinsic value anyone needs is the idea they can buy something from their neighbor with it. If ending trade is the result of a disaster to the point we want to trade our money in for whatever it's backed by, I think our problems are way worse... Gold wouldn't matter... Unless it really is what the aliens are after, bahahahahahahaha! I'm launching a bullets backed security, wanna join!? lol