bitcoin isn't a store of value

[Anonymous No.24591359]

The medium of exchange is the tool that facilitates the indirect exchange system, which we created as a solution to the inefficient barter system.

Instead of having to 'sell' the good that you dont want directly for the good you do want to 'buy' (barter), you can now 'sell' the good for another good(the medium of exchange), and then 'buy' the goods and services you want with the medium of exchange.

For this to work, the medium of exchange(money) must be a useful commodity that can retain consistent tangible value and utility, and therefore always have demand from others who are in turn looking to exchange their goods for said commodity (now the means of exchange). One of the most important benifits of this is that the medium of exchange can now act as a 'store of value', where 'purchasing power' can be stored in a commodity that can reliably be predicted to retain value over time.

Many commodities have been used as the means of exchange throughout history, but the free market has determined Gold and Silver suit our purposes for a means of exchange best.

Crypto currency fails as a means of exchange as it is not a commodity with any utility in and of itself, therefore cannot be a store of value. Despite its advantages over commodities in a digital sense, it is still expensive, slow, and difficult to use(relative to other mediums)

[Anonymous No.24591369]

>>24591359
I must point out the despite the beliefs of the crypto investing public, cryptocurrency is still plagued with the primary problem that baseless Fiat money has - and that is not infinite supply cap, but the simple fact that it has no tangible, inherent value in and of itself.

They will argue that its inherent value is that it's a 'superior means of exchange to anything else', but this is folly, and rooted in economic ignorance. It is no surprise, considering for the past 100 years+ the general public has been kept totally ignorant of even the most basic economics i am describing here.

Cryptocurrency certainly is superior to Fiat in its qualities, the most obvious being a limited/predictable supply. But unfortunately this is not enough, and ultimately time will prove it to not be adequate when capital flight flees from crypto and into a genuine store of value, precious metals.

[Anonymous No.24591388]

add something about china and russia perhaps?

[Anonymous No.24591399]

>>24591388
no need, thanks for the bump though

[Anonymous No.24591418]

>>24591359
>For this to work, the medium of exchange(money) must be a useful commodity that can retain consistent tangible value and utility, and therefore always have demand from others who are in turn looking to exchange their goods for said commodity (now the means of exchange).

Proof?

[Anonymous No.24591428]

I can't refute any of this so I'll just call you a retard and that means I win and reality is changed.

[Anonymous No.24591462]

Bitcoin isn't a store. It's just value. You don't need anything else.
Some cryptos have uses because they are better designed to be useful unlike bitcoin which is just a proof do concept pretty much.

[Anonymous No.24591520]

>>24591369
I disagree. I think you make a fair point for conservative investors to house their funds in gold silver or other rare earth metals that we require and only a few countries have...

Overall though I believe that with the advent of crypto and especially networks like Chainlink that allow entities like synthetix SNX or ramifi RAM to mirror the stock market, commodities, indexes, etc. why would you move your funds from crypto to metals when you can just move it into let’s say mSP500 (m=mirror on blockchain) where you get the gains of the market but no KYC no fees etc etc it’s just you holding X token that’s been pegged to the SP500 or Tesla. All made possible by networks like ramifi and Chainlink.

[Anonymous No.24591588]

>>24591418
its common sense, but i suppose then it should come as no surprise that /biz/ needs a quick rundown:

You are a farmer and produce agricultural goods with your labor and resources. You wish to exchange these goods for some luxuries. No on is willing to exchange the luxuries, say, some furniture, directly for your agricultural goods, so you must use the indirect exchange system and 'sell' your goods for the medium of exchange(money) which you can then use to 'buy' the furniture.

In this case, we will use Gold as the medium of exchange.

Why would the 'seller' of the furniture accept the medium of exchange(gold)? because the Gold, as a commodity of certain unique qualities, has utility and inherent value, and there is the reasonable expectation that the Gold will continue to have demand, and therefore the 'seller' will in the future be able to 'buy' other goods and services with the medium of exchange.

if the medium of exchange were say, paper fiat issued by the kingdoms tyrant, this would not be preferable, because there is no reasonable expectation that the paper fiat, with no inherent value, will retain or even has the ability to possess 'value' in the future.

>>24591462
>Bitcoin isn't a store. It's just value.

not an argument

[Anonymous No.24591665]

>>24591520
your understanding of economics is perhaps so poor that i couldn't possibly have any hope to convince you further. If you think moving your purchasing power into the stock market, which perhaps is an even worse means of retaining purchasing power than fiat currency, than I would only stress that you take some more time away from this website and read some books

[Anonymous No.24591671]

>>24591588
None of this explains why why the medium of exchange needs to have utility.
Why can't we use the magic rocks the space wizards gave us that can't be used for anything, are just as rare as gold but can be transferred to anyone in the world and can be shrunk to fit in my pocket and I can carry it anywhere I take it but at the same time is tied to me so noone can steal it without me saying the magic phrase? Makes much more sense to use that instead of gold kingdom tyranny is gonna take from me anyway if the tyranny Fiat collapses

[Anonymous No.24591672]

>>24591588
True, but taxes plus Gresham's law explain why you would use fiat instead. The tyrant demands payment in his fiat, and so you use that in preference to gold rather than losing X% of shiny per annum. That he's debasing it just increases your willingness to use it rather than store it.

[Anonymous No.24591699]

>>24591369
>talk about economic ignorance
>proceed to talk about "inherent value"
ok dunning K

[Anonymous No.24591741]

>>24591665
not an argument

[Anonymous No.24591754]

NERRRRRRRDDDDDDSSSS

[Anonymous No.24591779]

>>24591359
Economics is a meme, not real, never has been
you have already been proven wrong by the existence of cryptocurrency as a currency

[Anonymous No.24591792]

>>24591520
You're still relying on final delivery for commodities. Blockchain can only lock assets that are on the chain - that are only valuable when verified. Metals are inherently valuable so you still risk forfeiting them if you don't physically control them. Metals aren't an investment, they're a hedge.

[Anonymous No.24591877]

>>24591699
yes anon commodities have no inherent value, now if you would please liquidate your net worth, convert it to gold and forward it to me that would be great

>>24591671
yes it does, you just cant understand. can you not understand because i havent explained it clearly enough or because you dont have the ability to comprehend it i dont know.

if you just think about what an 'economy' is, the exchanging of goods and services, you will realise that a medium of exchange must have the qualities of goods and services. Money IS a good and a service(the 'good' is the commodity itself, and the service is it being the medium of exchange)

[Anonymous No.24591890]

>>24591877
Good luck with your Bachelors anon, only 4 years away

[Anonymous No.24591921]

>>24591779
>>24591890
quite literally, not an argument. and im not studying economics. i dont have to pay to learn knowlegde that was commonplace only a hundred years ago

good luck with your '''investments''' that force you into arguing inanely on the internet

[Anonymous No.24591931]

>>24591921
alright so you don't know history either
epic

[Anonymous No.24591947]

>>24591921
>good luck with your '''investments''' that force you into arguing inanely on the internet
Arguing with schizos on /biz/ is literally the biggest part of the value of investing in crypto.

[Anonymous No.24591959]

>>24591877
Answer my question fucktard

[Anonymous No.24591972]

This thread unironically makes me want to sell my whole fucking stack. Someone prove this guy wrong NOW.

[Anonymous No.24591995]

>>24591972
Bitcoin will literally become useless once the reward for mining becomes too low, or later on, non-existent.
No more mining, no more transactions.

[Anonymous No.24592001]

>>24591972
Nah, sell your stack.

[Anonymous No.24592105]

>>24591877
>yes anon commodities have no inherent value
>now if you would please liquidate your net worth, convert it to gold and forward it to me that would be great
you don't get it

> but the simple fact that it has no tangible, inherent value in and of itself.
Because nothing has inherent value in and of itself.
What's the value of gold now ? And in a future where you mine asteroids ? That's it.
What's the value of a water bottle in the desert ? And in a kitchen ? That's it.
So, compared to Fiat and Precious metal in 2020, does crypto-currencies, taking the role of money (the derivative of value) a rational thing to think ?
Obviously, considering their relative superior utility as a derivative of all value.

[Anonymous No.24592116]

>>24591792
Thanks for the honest reply vs the mongoloid OP. I think you’re right if you don’t explicitly control them physically. Then what’s to stop you from buying mGold etc as your hedge? Aside from the physical control piece

[Anonymous No.24592249]

>>24592105
This


Crypto was used by druggies and thieves when it was first created, because simply they had no other way to access the online economy with easily traceable electronic transfers.

Now the value of crypto is needed to protect the common man against inflation. 25% of USD in circulation right now were created in 2020.

[Anonymous No.24592284]

>>24592249
>>24592105
This one is an interesting read >>24590771

[Anonymous No.24592553]

BTC is just the natural evolution of the monetary system, it will not be the definitive crypto asset. It is a means to introduce the blockchain to the masses.

[Anonymous No.24592611]

>>24592553
It might be >>24592412

[Anonymous No.24592612]

>>24592284
>fungi

Wtf, that’s it I’m selling my stack right now fuck you guys