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Comment on AI Is Starting to Look Like the Dot Com Bubble

What’s the underlying mechanism that gives money a value? We the humans give money and gold a value because we believe they’re valuable. Same with crypto. Bitcoin is literally like gold but digital. Stop saying what everyone without knowledge says and inform yourself. Not only about crypto, also about money etc.

If you don’t understand the fundamentals of money, how can you judge something of being scam. There are lot of people here who didn’t even understand how money and gold works.

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bigschnitz@lemmy.world ⁨1⁩ ⁨year⁩ ago
Money has value insofar as governments use it to collect tax - so long as there’s a tax obligation, there’s a mandated demand for that currency and it has some value. Between different currencies, the value is determined based upon the demand for that currency, which is essentially tied to how much business is done in that currency (eg if a country sells goods in its own currency, demand for that currency goes up and so does it’s value).

This is not the same for crypto, there are no governments collecting tax with it so it does not have induced demand. The value of crypto is 100% speculative, which is fine for something that is used as currency, but imo a terrible vehicle for investment.

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- Freesoftwareenjoyer@lemmy.world ⁨1⁩ ⁨year⁩ ago
  I don’t know if it’s good investment or not, but cryptocurrency has uses that are valuable to a lot of people. You can send money to other people without using a bank or PayPal and you can pay for things online anonymously. Some cryptocurrencies might have additional properties like Monero, which also gives you privacy. NFT might also have practical uses some day - for example it could be used for concert tickets.
  
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  - aesthelete@lemmy.world ⁨1⁩ ⁨year⁩ ago
    Did ChatGPT write your comment?
    
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aesthelete@lemmy.world ⁨1⁩ ⁨year⁩ ago

What’s the underlying mechanism that gives money a value?

A) the government backing it up along with its advanced military

B) the fact that you have to pay taxes in it

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- RandomlyAssigned@lemmy.world ⁨1⁩ ⁨year⁩ ago
  Yep, which is why Bitcoin can’t last forever without turning into some sort of GovCoin for it to truly replace money
  
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