/biz/ - Business & Finance

It better crash I sold at 11.2k

>>7236116
>Crypto only has intrinsic worth to people who gain utility from it.

False assumption, because its market price contributes to its worth.

You can say, "I won't accept bitcoin" but as long as it is fungible into currencies you DO accept, the distinction is meaningless.

>The only utility that comes from most crypto comes from its use as a medium of exchange.

Its good enough as a medium of exchange for now. The real intrinsic properties that none of the other cryptos share is scarcity, distribution, name brand, network effect, capital pool, liquidity, widespread acceptance, etc. The most fundamental unit of value is just the possession of a private key.

The blockchain (ledger) is the real thing of value, the most intrinsic unit. Its used as a layer for other cryptos. Extensible by APIs, lightning network, segwit or new protocols.

>Speculation lowers the intrinsic worth of e.g. BTC and XMR, because it makes them worse as a medium of exchange.

Not necessarily. Its arbitrary that two exchanging parties desire a more volatile or less volatile medium of exchange. It can be thus argued that people prefer bitcoin for precisely this reason. In speculation, bitcoin is a great coin to trade because it has consistent and liquid volatility compared with other coins. This has a lot to do with deflationary economics of its design and low circulating supply as well which can both act as obvious intrinsic benefits for the speculative trader and the investor.

>Therefore, once speculators leave, any cryptocurrency that can only act as a medium of exchange will decline in value until it reaches an equilibrium between utility and mining again.

Speculators move the price but investors support it.