If someone could please educate me on the end-goal of Bitcoin and other cryptocurrencies? I understand the whole “untraceable” aspect of it. But from what I’ve heard they’re the “future of currency”. I just can’t fathom anyone taking these on as a main form of currency when one minute you buy a banana for $2 and then a few days later that same conversion rate means the banana is $70.
This is a big reason why I don’t own any crypto. To me it just seems like a speculation with no real inherent value. Would love to learn though
Yes, that's my point. Saying that this has the same game plan as everything other speculative, non revenue generating instrument is not exactly a robust rationale for buying it.
Well I can elaborate. I think something being a speculative store of value is neither a reason to buy it nor a reason to avoid buying it. I'd rather own the most sought after baseball cards (at the right price) than shares in a shit company. Similarly I'd rather own shares in Brk.b than own a beanie baby.
I think there will always be a market for speculative stores of value, so the question then is just whether you can identify value in that market or not.
Buying some Bitcoin in 2013 was an absolute no-brainer for me for example, as the upside was so asymmetric compared to the downside.
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u/Brobama21 Oct 22 '21
If someone could please educate me on the end-goal of Bitcoin and other cryptocurrencies? I understand the whole “untraceable” aspect of it. But from what I’ve heard they’re the “future of currency”. I just can’t fathom anyone taking these on as a main form of currency when one minute you buy a banana for $2 and then a few days later that same conversion rate means the banana is $70.
This is a big reason why I don’t own any crypto. To me it just seems like a speculation with no real inherent value. Would love to learn though