this post was submitted on 21 Sep 2023
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Technology

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[–] Poggervania@kbin.social 46 points 1 year ago (61 children)

Crypto and NFTs are complete scams, change my mind.

[–] Euphoma@lemmy.ml 14 points 1 year ago (18 children)

Cryptocurrency has its uses as unregulated currency, though that makes it easy to scam people with it.

[–] upstream 13 points 1 year ago (17 children)

The biggest problem is people trying to peddle it as currency.

It isn’t currency, never will be. Much more alike to bonds.

It’s an investment object with a speculative value, and no tangible value. The only value it has is what the next guy is willing to pay for it.

While currency is deflationary by nature, crypto is entirely based on demand and supply, and sure, as long as people think it will be worth more tomorrow - sky’s the limit.

Like any pyramid scheme it pays out to get in early, and get out before it collapses.

Relying on crypto is high stakes gambling, and people being people is the only reason I can find for it not having collapsed totally already.

[–] ConsciousCode 2 points 1 year ago* (last edited 1 year ago) (1 children)

It's fiat, I won't argue it was ever going to be a good currency with built-in deflation, but that's what it was originally meant to be. It's long since become too volatile to be anything but a speculative asset, though. It does seem curious to me what that says about the actual distinction between legitimate currencies, stock options, and pyramid scheme buy-ins.

[–] jarfil 3 points 1 year ago (1 children)

High volatility is not a problem for a currency:

  • work January, get paid $1000, pay $1000 in due bills
  • work February, get paid $25000, pay $25000 in due bills
  • work March, get paid $50, pay $50 in due bills

Volatility is irrelevant to a currency, unless you want to treat it as an investment.

[–] Sas 2 points 1 year ago* (last edited 1 year ago) (1 children)
  • work January, get paid 1000, pay 600 in bills and lay 400 aside for potential emergencies
  • work February, medical emergency comes up but medical bills now cost 10000 so you can't afford them with the 400 you set aside and you also can't work because of the emergency so you take 20000 debth to repay the medical cost and other bills
  • work March to repay your debth, but you only get 50 while still having a debth of 20000
[–] jarfil 1 points 1 year ago (1 children)

Volatility is irrelevant to a currency, unless you want to treat it as an investment.

can't afford them with the 400 you set aside

Meaning, you treated currency as an investment. What did I just say?

[–] Sas 1 points 1 year ago (1 children)

What you just said was a thing that you can only do in an idealised world where you never get sick and all your bills are always payed in the month you get them. Nice of you to completely ignore the rest of the answer that kind of points to why in the real world you have to set aside money and why in the real world a volatile currency is useless

[–] jarfil 1 points 1 year ago* (last edited 1 year ago)

I'm sick all the time, that's why in my "idealized world"...

I just came from the pharmacy with a bag of meds, paid with... we have these plastic cards stamped with "Social Security" and our ID on them, worked just fine... right after going to get an echocardiogram... where I made the mistake of asking the receptionist where to go, he just told me to scan the barcode at this machine at the entrance, which directed me where to go and spit out a turn slip (turn 1, oh well, they didn't seem to have many echocardiograms scheduled today)... and then had to take the bus, there is this other plastic ID card I have to touch to the scanner on entry, good thing it's a city bus so disabled people get to ride for free.

By the way, also got my disability check today, which went straight to bills, and a bit onto a prepaid card in case I must pay something unexpected without having to ask a social worker for help. Setting some aside would be fun, I have some ways to invest it in case some month there's too much left.

Guess I forgot to mention I live in the 1st world... but honestly, if I lived anywhere else, I'd trust currency even less.

(PS, the metamizole seems to be kicking in, so time to go take out the trash before I'm stuck back in bed)

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