Limited Supply. Utility/Technology. Community. Speculation.
These thoughts are in the wake of the unofficial proposal by @ned for Steem community tokens:
One day it will be possible for everyone to easily create their own crypto token... so what will make any of these tokens have value?
Peace,
dan-atstarlite
My personal opinion is that crypto-currencies have an inherent value of zero. That said, the federal reserve note is worse than that, as it's a note that is due back to the federal reserve with interest. Because the crypto-currencies are supposedly decentralized, my opinion is they are better than the dollar but not as good by any means as something like gold or silver or some other tangible hard asset. The utility of cryptos, however, make transactions much easier than using hard assets for that.
These are good questions and we certainly live in interesting times.
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Some good points to ponder. I suppose we could ask the question, "Could the utility be done outside a particular blockchain" and if the answer is yes, then you have a strong point since people may switch to that instead.
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Even with precious metals, it all comes down to perceived value and the agreement that something has value. I can remember when people thought they were set for life because they had finally gotten that extremely rare beanie baby.
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Indeed what gives a cryptocurrency value is that it is accepted as payment for some goods or services. Yes you can create you own tokens, but if you can't provide something of value for those tokens they are worthless.
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That is true. And precisely what determines the "value" of his new crypto venture? Again, public "perception." And the anwser to the question is another question. Would the ave human being feel more comfortable using Bitcoin or Etereum as their choice of currency (being that they are now established and it is more likely to find someone who will "exchange" goods, services, or another currency for them)...or will they flock to the new and improved and unproven alternative? :-)
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Most of my holding are in bitcoin and Etherum. Any other holdings are in specialty crypto like Steem. So in my case the answer is clear 😃
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All of the cryptos will likely follow the price of Bitcoin. I realize ETH is now outperforming. But it won't last long. The bitcoin trading computers are now having difficulty in finding new buyers/suckers to make higher price highs on the short term live bitcoin chart.
http://bitcointicker.co
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Utility - major key. You hit the nail on the head my man @dan-atstarlite
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The same thing that gives the US Dollar value. Confidence. Confidence that the green pieces of cotton can that I received can be exchanged with ease for goods and services that I need. In your cyrpto, confidence that your digital block chain can used by me in exchange of goods and services I need.
What causes inflation, the loss of confidence of the currency. Look at Venezuela. Would you exchange Steem for Bolivars? Maybe if you got 1,000,000 Bolivars but probably not 1:1
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Follow your yt channel too! Find also good infos on my Blog about Cryptos.
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useful info
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Everything has value. And value can be priced in dollars or any other accepted medium of exchange. So "value" has nothing to do with it. "Perception of value" is where the trouble starts. Here's an example: Let's say Chevrolet comes out with a new style corvette that is soooo awesome that everybody that wants one is going to make sure they get one. When production is slow and there are waiting lists it is human nature to bid the price up because demand (artificial or otherwise) dictates that you pay a premium if you want it now. 6 months later, as production is in full swing, the same corvette that initial buyers were willing to pay $10K over retail for, and stand in line to get it, are now selling for MSRP dead nut. Price was driven by "speculative" demand. So at $10K above retail new corvettes were not a good "value." The real market will ALWAYS revert towards "real" value in the end. If the boards here at steemit were filled with "doom and gloom" about how much money people were losing on their bitcoin purchases I would say that "potentially" bitcoin is a good "value." I don't see that happening now You can gauge value by sentiment. Thankfully that fact will forever be true. Most people are clueless about how to gauge value though.
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Crypto currencies have "Value" because a bunch of an-caps and millenials with dim job prospects are hoping to get rich quick like the first wave of Bitcoin owners did.
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..... heard the saying not even worth the paper on which it is printed? Well I think any cryptocurrency is not even worth the atoms that composed the bits which make the bytes that make the characters that describe the mathematics referencing the cryptocurrency. Now on the other hand, a Porsche could be worth USD$150k and if I agree to pay that, like in any case, there where TWO parties involved in the transaction. So to the point, value is the amount of personal importance that one gives to something that I need/want. Don't want value to me is zero. I want, hum seller better not know or he will milk me.
In the not so distant future we will all be using cryptocurrenies: how much a loaf of bread, maybe BTC 0.00002; still if the hole of society says it is worth BTC 0.00001, then that will be the transaction cost from there onward.
BTC 0.00001 = 1 loaf of bread
@indepthstory
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