Congrats, now you understand fiat currency. It only has value because we agree on it.
Comment on From millions of dollars to under a grand: The dramatic fall of the NFT
PixelatedSaturn@lemmy.world 1 day ago
I think most people don’t understand cryptocurrencies. On one side it’s all hyperbolic about being your own bank and financial freedom and new tech, on the other side it’s hyperbolic about how there is no underlying value, it’s all going to 0, scams, drugs, terrorism, money laundering,…
But the fact is that crypto does have an underlying value. It’s gambling. Gambling is a huge industry.
frongt@lemmy.zip 1 day ago
mattyroses@lemmy.today 12 hours ago
Fiat has value because the government demands taxes in it. If you don’t pay your taxes, they put you in jail.
PixelatedSaturn@lemmy.world 1 day ago
No. I mean you can get all philosophical and say that everything has value only because that’s a human concept, but thats not really something I would answer to.
Fiat has value because it’s enforced. Because we have institutions that enforce it and because all of our lives are intertwined with it. We buy food with it and we are paid with it. It’s everywhere. It doesn’t make it immune to manipulation and fraud and crime, but we can take legal action because law is also intertwined with the same system.
Crypto is , with a couple of exceptions, a really terrible casino.
ZoteTheMighty@lemmy.zip 1 day ago
As opposed to the USD, which is backed by nothing, and therefore has no underlying value, but is not gambling for some reason?
arandomthought@sh.itjust.works 1 day ago
The USD is backed by a state who demands their taxes be paid in their currency, ensuring there will always be demand for said currency.
homes@piefed.world 1 day ago
Also, literally, tons of gold
underisk@lemmy.ml 1 day ago
This is also why people who complain about how “our tax dollars” are spent are missing the point. Their tax dollars don’t fund the government or any of its activities. Taxes are just an inflationary control measure; money is created when the government spends it.
leoj@piefed.zip 1 day ago
Also drugs.
I always said as long as crypto can be used to buy drugs, it will have value.
When everything we know in the world is gone and we’re using rocks to make spears again, people will still want drugs, the value is eternal.
underisk@lemmy.ml 1 day ago
I mean it’s also really really good at money laundering and other financial securities scams that are otherwise illegal in real currency. IDK why OP is being so dismissive of that.
As long as the gov refuses to regulate it, it’s going to be useful for crimes. On the off chance we ever get a government willing to actually do anything but war crimes and graft, regulating it would destroy a lot of its utility and value.
PixelatedSaturn@lemmy.world 1 day ago
I think it’s an exaggeration of its crime utility. Normal money is king for crime.
underisk@lemmy.ml 1 day ago
Normal money can get you a visit from the SEC when you do securities fraud with it. Has that ever happened with a crypto pump and dump?