zlacker

I feel like the value of crypto going up is backed by solid economics. There is only ever going to be so much of it so losing your money to inflation isn't a risk. People die and don't tell anyone their keys, people forget their keys so we're constantly losing crypto too, w/ currency this is taken into account and print new dollars not w/ crypto. I also think it reflects a general sentiment here in the states and probably China too that we're barreling toward a fucked up never world and crypto is some kind of safe guard against that. In times of uncertainty people turn this gold, this is very much a digital gold.

>>mdgrec+(OP)
> I feel like the value of crypto going up is backed by solid economics. There is only ever going to be so much of it so losing your money to inflation isn't a risk.

This is solid economics iff you assume that crypto has a utility for which there is no substitute which does not share the same supply constraint feature, and even then its not solid economics for a current investment unless you also assume that that utility is the entire basis for its current valuation. Because even if it has a nonsubstitutable utility, if that's not the basis of its current value, then the "solid economics" is that there is some price it could reach from which further value drop because of supply (of substitutes) will not erode value, but there is no guarantee of what that level is.

>>mdgrec+(OP)
Gold does not require much infrastructure or utility to keep existing, and it is operable by anyone with hands or less.

>>mdgrec+(OP)
> There is only ever going to be so much of it so losing your money to inflation isn't a risk.

This comment feels like it’s 2013 and there hasn’t been a decade of people creating thousands of other tokens and forks, or realizing that high volatility in liquidity or exchange rates is more of a problem than the levels of currency inflation we commonly see (the price increases we’ve seen for the last couple years are most of the inflation we’ve seen and that practice would be unaffected).

It especially misses the understanding that deflation is much worse for anyone who isn’t already rich. The model that anyone who bought a decade ago deserves to be fabulously rich is … unlikely to be popular with the rest of the world.

>>mdgrec+(OP)
That's a poor comparison.

Crypto is an umbrella term for a number of solutions, including blockchains (roughly 1,000+ as of right now) and cryptocurrencies (roughly 22,000+). While a given blockchain may be limited in terms of how much can be 'mined' or grow, you or I could very easily create a new cryptocurrency or even a new blockchain. Assuming we got traction with it, there would now be N+1 more out there.

Gold is not something we can so easily create. It also has intrinsic value through practical applications.

>>dragon+f1
Agreed! It's backed by solid economics if you believe a load of things that aren't backed up by solid economics.