this post was submitted on 28 Jul 2024
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[–] just_another_person@lemmy.world 4 points 1 month ago* (last edited 1 month ago) (8 children)

Nobody is going to hold crypto over gold. I don't even understand where you're coming from on that one.

Put it this way, crypto has no use on this planet except in the crypto bro hemisphere because:

  • no government would ever allow their transactions to be tracked
  • no government would ever allow their Treasury transactions to live on a blockchain
  • the US Dollar is backed by gold and silver
  • Crypto only works in the here and no. Say there is a nuclear war that wipes out half the planet. Crypto ain't surviving that.

If you're of the frame of mind that crypto in any way shape or form works "all the time", you've been in the game too long and have lost perspective. It works solely for individuals in the here and now of this very specific point in time on our planet, and that's about it.

[–] AIhasUse@lemmy.world -5 points 1 month ago (7 children)

Yeah, heard it all before. They said nobody would ever give real money for internet points. They were wrong. They said a bitcoin would never be worth a dollar. They were wrong. They said no government would ever acknowledge bitcoin. They were wrong. They said no US government would ever accept bitcoin for taxes. They were wrong. They said no government would ever make it a national currency. They were wrong. They said bitcoin will never be worth 10,000 USD. They were wrong. But sure, I'm sure you are positive it will never go any further, that governments would use it as a reserve currency. I'm sure you're accurately calling the next line.

If half the world is nuked to hell, then gold or special paper isn't going to buy you bread either.

Only one way to find out who's right, the people who have consistently been right for over a decade or the people who have consistently been wrong. You're free to place your bets wherever you choose. If you prefer your value to disintegrate by inflation to save your fragile ego, then more power to you, it doesn't change what's happening in the slightest. Upcoming generations can see it clearly, you can be the elder stuck in the past or the one that embraces the future. The only one that it affects is you. Your choice.

[–] just_another_person@lemmy.world 5 points 1 month ago* (last edited 1 month ago) (6 children)

Being wrong in the trajectory or worth of something is one. Knowing the limitations and real-world applications of it is another. You still can't go to any store and use crypto, can't use it offline, can't trade it offline, and can't store it offline (don't get me started with hardware wallets, the chain is still online). Governments would never use it for this reason. Trading something online because you can catch profits in its market is something done with produce. It's no different than any other profit scheme in a tradable good whose value is determined by what people will pay for it.

As far as El Salvador...oof. How's that going for them? Not so well.

Also, your point in inflation...wow, you don't seem to understand economics. Any physical good sold is prone to inflation due to supply and demand. The currency doesn't determine how inflation works at all, so I'm not sure where you got that from.

Example: Florida grows oranges and are literally falling from trees, while Maine doesn't have the climate to support that type of agriculture. Therefore, oranges are cheap in Florida, but more expensive in Maine due to transport costs. Suddenly, there's a bad hurricane or cold snap in Florida that wipes out an entire years worth of orange crops. Now you have inflated Orange prices, the price of fertilizer goes up in Florida, agriculture equipment demand goes up in Florida, and orange farmers have less money to operate for the next growing season. Inflation.

How are you thinking Bitcoin solves any of this?

[–] AIhasUse@lemmy.world -1 points 1 month ago (1 children)

The currency doesn't affect inflation? If every day the number of usd doubles, would that increase inflation, decrease it, or keep the value the same? That is extreme, but it should really clear things up for you.

You are right that if there are less oranges and the same demand, then oranges will go up in price. Now apply that same logic to the currency itself. If there is more of a currency and not more demand for it, should the value of that currency go up or down?

This really isn't complicated economics, I guarantee that if you crack open any intro to economics textbook, you will have your current understanding completely annihilated.

[–] just_another_person@lemmy.world 0 points 1 month ago

Responded elsewhere, but again, this is called devaluation.

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