• ODT Gun Show & Swap Meet - May 4, 2024! - Click here for info

Doge warning

Shotgun Surgery said:
I think that at the root of this lies the fact that most people don't understand the difference between price and value. Price and value are two entirely different things that only sometimes coincide. Price is just the amount of wealth that someone is asking in exchange for something whereas value is the fundamentals of how beneficial something is to humanity.

As an example, if you paid $100 for a Big Mac that wouldn't then mean that your Big Mac is really fundamentally worth 20 times that of any other Big Mac; it just means that you overpaid for the sandwich. As another example, if someone who didn't know much of anything about guns decided that they'd be willing to sell their late Grandpa's vintage Colt Python to you for $300 and you accepted that deal, that doesn't mean that your Colt Python is worth several times less than any other vintage Colt Python. These are both examples of something's price being dramatically different from its value.

The free market has something called price discovery, where it generally results in the price of things sold getting close to their fundamental value. Because of this, many people incorrectly believe that if something is priced at a certain amount that therefore it must be worth that much too. The two major issues with this thinking are that we don't live in a free market, and even the free market can make mistakes because its composed of flawed individuals. Financial bubbles form even in free markets, and these bubbles are examples of price and value being dramatically different.

So, back to crypto. Many people don't even know that price and value are two different things. They just see that the price of crypto currencies are up and therefore they must be fundamentally worth that asking price because to them price and value are the exact same thing. They have a way they view finance which prevents them from being able to stop and think "I'm doing real work and in exchanging for my work I'm receiving paper the government printed. Then I'm exchanging that paper the government printed for some 0s and 1s on a computer." They don't realize that the paper they work for doesn't have any inherent value, nor do most of the crypto currencies they're trading that paper for.

There are some crypto currencies that have fundamental value. An example of this would be LBC - it is a crypto currency used by the LBRY program which is a decentralized media sharing platform. Content can be promoted on this platform exclusively through the use of the LBC crypto currency. There is fundamental value in the attention of other people, and this LBC can be used to gather some attention from the users of the LBRY program; this give LBC some fundamental value. Other crypto currencies like Bitcoin, which only functions as a currency and nothing else, don't have any fundamental value. Proponents of Bitcoin will point out its scarcity, but scarcity alone doesn't give something value.
Click to expand...
I wonder how Dogecoin will react after Musk's Saturday night live performance.I think Bezo's an Musk are just entertaining themselves with Dogecoin.
 
letusbuyyourcar said:
And to make matters worse its all DIGITAL. So what do you actually own? In my experience if it's digital it can disappear without warning. Kinda like when over the air TV went from analog to digital. In the analog days you could get a picture even if it had a little static. Digital is all or nothing.
Another simple but appropriate analogy for crypto. When you're building hpuses or any other big project the supply stores will deliver your materials. But as we all know sometimes those same delivery guys will come back in the middle of the night and steal those materials. I feel the same way about crypto guys. After all the guy guys that came up with it obviously know more about it than the folks they sell it to. So how easy would it be for them to take it back when you aint looking ?
Click to expand...

Your crypto wallet is more secure than your bank account.
 
Robert cherry said:
I just opened a webull account and its telling me I can only make a deposit with checking account or wire transfer I was wanting to use a prepaid card incase my info was comprised anyone have any tips
Click to expand...

No way around that I don’t think. You have to link an account to most, if not all investment sites.


Sent from my iPhone using Tapatalk
 
blazedawg87 said:
Your crypto wallet is more secure than your bank account.
Click to expand...
Well given the fact that I'm on my 3rd Saunmark debit card in 2 years I'll admit you may have a point. But I just have a problem with buying intangibles. Never downloaded a single song. I like something I can see or hold for my money.
 
Mr. Booshie said:
My entire BTC balance was stolen after a exchange host data breach. I beg to differ.
Click to expand...
Your holdings in the exchange or your actual crypto wallet? Wallets are virtually unhackable. If you lose your recovery key it and everything in it is gone forever.
 
Something that hasn't been discussed yet that I believe is pertinent is that the U.S dollar is still considered the world reserve currency and has some relative strength left in it when compared to other currency. Even though it's buying power isn't what it once was, it has yet to suffer the same fate as some South American and African currencies. When the day comes that the U.S. dollar is practically worthless, everyone will be scrambling to find something with even just a perception of value. There are already cryptocurrencies/digital assets that have been built for just that purpose. This crypto/blockchain/distributed ledger technology will become a staple in all of our future financial decisions. Stocks, bonds, your marriage license, the deed to your home. Everything is going to be digitized.
 
You must log in or register to reply here.

Featured Listings!

Back
Top Bottom