Why Should Bitcoin Be Valuable?
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- Опубликовано: 17 сен 2024
- Responding to a real life question, why should Bitcoin be valuable at all? Doesn't it "not do anything?"
Here I discuss the ramifications of a digitally-based world financial system and what it means for bitcoin price. Bitcoin can not only be used as a store of value to replace gold, but can be used to write higher-level applications on it to make trustless and peer-to-peer financial derivatives, which could soak up obscene amounts of the financial soystem. The market cap of Bitcoin has astronomical potential, and owning bitcoin means having a permanent share of this system on the ground level.
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Also of interest may be my Monero Talk interview for details on Monero vs. Bitcoin: ruclips.net/video/qIMw_cI4UsA/видео.html
I just have one question: is it controlled by the tribal mafia that claims to be from the Bible? Thank you.
@@alextremodelnorte1905 probably
Hey Luke, great video but I think my biggest fear that demotivates me from relying on or investing in Bits is some phobia of a wifi shutdown of some realistic degree not completely but I think governments are seeking some way to fight and demotivate people from using Bitcoin, seems very plausible to me in the near future; hows one deconstruct said phobia and stop being a lil B?
@@alextremodelnorte1905 it being bitcoin or monero?
@@shezyam460 Either one or any other kind of crypto for that matter.
I think the downfall of crypto is that there might be scarcity within a single coin, but now there are over 7000 different cryptocurrencies that all claim to be scarce.
Only a fool would get fooled by shitcoins
the rest of the crypto are just monopoly money for these crypto companies.
You could make the same claim about metals, but only gold and silver have ever been monetized.
And they all have the same problems like regular investments/stocks
Thats like saying english is a worthless language because there are 7000 other languages. Network effects
The problem with comparing it to gold is there is demand for gold that is unrelated to storing value (using gold in electronics, chemicals, jewelry, plating, etc.)
Enter Ethereum…
that demand does not account for the vast total of market cap behind gold. If gold was purely utilitarian, it would be worth as much as copper at most.
@@rooteduser623 laughable.
@@RayRayDontPlayPlay easy to say now and not 6 moths ago though right?
@@rooteduser623 what do you mean? I’m a Bitcoin Maxi man and have been since 2018. Eth is a joke.
Gold does actually have a variety of physical properties that make it valuable outside of it simply being scarce. It does not take away from your central point about the scarcity of bitcoin, or some of the advantages it has, but it doesn't put the best foot forward for your arguments.
Yeah gold doesn't "do nothing" people desire it for its beauty (jewelry) and industrial applications
Jewelry and industrial uses have been a fraction it's value. If Bitcoin provides a superior store of value function golds usefulness will decrease tremendously and there will be an incredible surplus of bloat supply available for its jewelry and industrial use. Mining will no longer become profitable and a mass exodus will ensue... When the price collapses I wonder if it will even be desired as jewelry any more 🤔
@@jonathanolson772 gold isn't just used for embroidery. A lot of electrical components have gold in them. Gold serves well as a dielectric inductor.
Gold shiny
And is also a conductor
@@mcalexandergold even in the case of Jewelry there are properties that make certain metals preferable to others. Gold has the advantages of being hypoallergenic, resistant to tarnish, relatively lightweight, and relatively malleable in comparison to other materials.
gold is a physical metal that is actually used for building and making stuff
of course, but compare the market cap of gold with other metals with also desirable properties.
@r4rev2 Yeah, it has uses but those uses don't justify its valuation.
@Mike Mo Every instrument that doesn't produce future cash flow is some degree of a ponzi scheme. The question is how much is the market valuing the risk. Gold doesn't produce a cash flow, you buy it as a fetish, a hedge, or to speculate on price appreciation. I will grant that bitcoin isn't a hedge, but aside from that it is a fetish / price speculation instrument which is what a lot of people buy gold for. Other cryptos (proof of stake cryptos) produce staking rewards that generate future cash flow and therefore elevate them above bitcoin or gold.
As far as the IRS, they will come knocking no matter how you make money that's nothing new.
@Mike Mo I can eat a sack of beans, I can't eat a bar of gold. Gold, aside from its value as a fetish, is valued based on future price appreciation. It has no utility to justify its valuation and no future cash flow associated with it at all. Just because it is a long running, low volatility ponzi doesn't mean it isn't a ponzi. Its value is based on the greater fool theory - that makes it a ponzi. Bitcoin is a ponzi too, but unlike gold it purports to make certain transactions easier and so has some utility. It is absurd to think gold isn't as much of a ponzi as bitcoin.
@Mike Mo "Bitcoin, aside from its value as a fetish, is valued based on future price appreciation. It has no utility to justify its valuation and no future cash flow associated with it at all."
Yeah I'm not disputing that and never have. Bitcoin and gold are the same in this respect.
I'm not even a Lolbertarian but even i see the voooters and soyance technocrats can take my fed coins anytime they like, nobody can take my Bitcoin. that's why i have it.
that's a nice thought and all but having bitcoin means you have to have electricity (and internet access) for you to access it. can the gov turn off your electricity?
@@TheFaceSoap it is for this exact reason that solar energy is based. Not because of any environmental hoo-hah, but because the generation of electricity is taken away from the government and given to the individual.
@@narwhalyt7231 good answer tbh, but that still leaves internet access as a question
@@TheFaceSoap Not very easily. A car battery is enough to keep a cellphone charged for a long time. You also do not necessarily need internet to transact on the blockchain. Any electronic communication network will work (telephone, satellite, radio).
Plus, the whole legacy banking system relies on electricity and Internet connectivity to work.
@@MrEdrftgyuji ah forgive me for being misinformed in that area then, although have those methods been used to communicate with the blockchain before? and fair point - I will grant you that too
I'm currently calling the Bogdanoff brothers.
However, the problem is that Gold has inherent value whereas Bitcoin does not.
Gold can be used to manufacture electronics, religious implements, and all manner of jewelry and such. Gold is necessary to the functioning of modern society, and even ancient society as a result of its intrinsic properties.
Bitcoin is not, and has no intrinsic qualities.
But you can’t code in Gold, you can’t transfer gold like bitcoin. Don’t see the price, it might go up and down, just imagine how hard was it to create a system that doesn’t require a third party to validate the transaction.
Gold has value because we all agree it has, it’s same with Bitcoin.
@@csfundamental1977 I dont agree Bitcoin has value. I dont want bits that are dependent a communication network in exchange for my goods and services.
There are way more practical materials than Gold. All it's value comes from scarcity.
@@freedomofspeech2867 Actually for the applications gold ends up being used in (as few as possible due to scarcity) gold is the only acceptable or at least the best material for the job. For instance, coating connector pins on electronics with gold is the the best because gold is malleable and it doesn't corrode so the pins will conform to each others surfaces and remain undamaged by heat and electricity causing oxidation.
What is with people's obsession with buying "digital gold" instead of real gold? Bitcoin's market cap is in the trillions now, so it is getting somewhat (barely) comparable to gold's market cap. Why should Bitcoin even approach gold's? What if Bitcoin had the same market cap as gold? Why would anyone want the world to be so sick as to value "dIGiTaL gOLd" the same as real gold? Why would you want to hold bitcoin instead of fucking physical gold? You can't even 'hold' bitcoin. It's on a public trustless distributed ledger.
@@jonathanolson772 Gold does not get it's value from it's physical uses.
Bitcoin is the future of currency. Value isn’t faith based. It’s scarcity and energy investment in the form of proof of work. It works at the speed of light and the last and most Important thing is security. Ppl speak of tech and smart contracts and blah blah blah…. When you want to use a payment system, security is 1st. As a layer one solution nothing comes close to Bitcoins security. Build the lightning network on top of that and the battle for payments is over. It’s really that simple.
1:35 gold is used in the very processors that you are using to record and upload this video
$0.0001 gold
@@___xyz___ Yeah people think they are smart but the value of gold is negligible in proportion to its price
It's so rare for ,e to actually catch ur fresh vids...
finally somebody that can explain bitcoin to my mom
You made me want to buy btc, but as a store of value more than an investment. Best bitcoin ad ever
@@senantiasa Why do people want to trade my GBP for BTC?
Hey Luke - You've surely answered the question of "Why it should be valuable ? ", but there is a better question : "If it really will be valuable?"
What I mean by that is government might not allow to use such a coin on a daily basis just because it cannot inflate it and manipulate it. Governments can restrict the usage and availability of any cryptocurrency by closing sites that allow transactions involving it. Then it might just go into the black market until someone invents working, decentralized crypto exchange.
Thankfully decentralized exchanges already exist (atomics swaps and bisq is ones I know)
You can also go outside and buy bitcoin directly from another person.
What the goverments currectly do with crypto is enforce KYC in exchanges and wallets, allowing them to view any transaction you made because the bitcoin blockchain is completely transparent.
@@iskamag So it's not really decentralised if you can enforce KYC.
If the site would be decentralised on nature - it wouldn't be possible to take it down.
Atomic swap works only on crypto-crypto exchange.
What I meant is the site itself being decentralised allowing exchange without KYC.
@@nc956 yepp, and the kyc problem has also spread to wallets, I remember last time I used coinbase it needed my ID or else they'd need me to wait 3 whole days to transfer money.
This gives fungibility problems, and getting clean bitcoin would probably cost you more.
fully decentralized crypto already exists
your argument comparing gold with and digital bitcoin is vague , very very very vague
Don’t forget to Invest in bullets and practical skills
I don't think BTC is made for the amount of people that use it. The more who use it, the more it gets overloaded, and it's already very overloaded.
When I send cryptocurrency to my friends and family, I usually send in BCH, LTC or XMR.
... But I guess in this video, it was more talk about the value rather than the technology.
I mean, if you want to talk about the technology (especially where it's headed to) you're not in the right space, with bitcoin I mean. Blockchain is mainly pushed forward in other fields and spaces, mainly etheurem. Bitcoin was the kickstart and that's all it will ever be.
Think of Bitcoin like a bank. You can store your wealth in bitcoin, and then transfer chunks of it to other currencies that are better for small purchases. Like withdrawing cash from an ATM.
The one upside of Bitcoin is that it is the only truly open coin that doesn’t have a hypothetical built in kill switch where you just have to trust the developer/bootstrap node to delete the entire blockchain’s seed after creating it, which with other coins there’s no way of knowing whether or not the creator can just pull the plug on a whim; which is why fedcoins are fundamentally dangerous IMO.
@@egg5474 Hypothetical built in kill-switches? What are you referring to? Smart contracts?
@@MrEdrftgyuji imagine your ATM taking 2 hours and a $4 dollar fee to give you any amount of money
Bitcoin will be the digital store of value in the future, just like how gold is the physical store of value, but just like gold you won't be using it for everyday purchases (imagine trying to buy a burger with a speck of gold dust). Bitcoin would also suck as an everyday currency but would still serve fine for large transactions or a digital "savings".
That sounds kinda dumb.
And also bitcoin literally has a death timer built in, why not use an actually usable currency (like monero) as a store of value as well? (It will take years to mine another million of these coins btw)
Lightning Network is supposedly the answer to smaller payments, but is prone to create a disconnection between the “real” amount of bitcoin and the value in the network (banks starting to issue btc backed currency). I think Luke talked about this when discussing bitcoin maximalism.
@@henriquesousa9663 But with low fees in the future what incentives will miners have to “secure the network”
@@iskamag What death timer are you referring to?
@@autoagent1220 once 21 million bitcoins are mined miners will need to rely on transaction fees, which will certaintly bring a lot of trouble
I really loathe digital scarcity, and Bitcoin by extension. The digital space exists post-economics by virtue of the fact that digital artefacts are infinitely copyable and shareable. Creating scarcity in the digital world is perverse.
I remember people with the means to do it would print infinite Robux back in the day. I have no idea how, but I assume that day could come for Bitcoin too.
It's making zeros and ones scarce which are supposed to be the least scarce thing possible. That's why the internet was great, it takes almost nothing to communicate. Information should flow freely not be restricted. Money should be physical not digital just on principle.
@@jonathanolson772 couldn’t agree more. The whole idea is wrong on a basic ethical level.
@@MarkHalberstram If digital scarcity is ethically wrong, then I implore you, switch off TLS for all of your networking.
"If you have billion dollars in gold..." Is Luke yet another temporarily embarrassed billionaire? I just rewatched "When is Technology Bad for You?" and it seems to me like Luke's position on technology definitively has changed, maybe something it would be good to address in a video. To quote the video:
"When you're deciding whether or not to use a technology, the question you should be asking yourself is "Is this technology more small scale or is it more organizationally-dependent? Because if it is more organizationally-dependent, I can tell you what, it's going to make you more reliant on the things outside of your control. It's gonna make you reliant on your internet connection, some company in China, it's gonna make you reliant on just anything to do something basic. Whereas, if you have the choice of having small scale technology you should always go for that."
This
fungible & non fungible tokens can essentially be understood as (decentralized) internet primitives that arrived 20 years late to the party, at the very least solving cash and the deed. I don't see crypto enthusiasm as his stance changing, its a completely pragmatic extension for someone who already concedes to using the internet. After all, the alternative is a bank account or cash, are either of these "small scale technology"?
very good points, although I'm bullish on BTC from a speculative view
@@EDWARD_FLEX using cash or gold is definitively smaller scale if only on the fact that your transaction is not traced
@@intfamous4001 I think it's ok to speculate (gamble) on it, but realize that crypto doesn't do any more than that in terms of providing value to the user. If crypto ever starts being used as currency there will be a crack down on all of them. As long as crypto is just a way to gain or lose US Dollars it will be tolerated by the US government.
But Luke, is it really ok to use Bitcoin as a store of value when anyone can literally just look at the blockchain and see how much money I have? That's not the case with gold.
If they look at your gold they can see how much you have. Create multiple crypto wallets and keep their addresses secret, and it's hard to know who owns what.
Or monero
@@Aiden-vj2tg I lost my monero in an unfortunate boating accident
I don't want my child to be able to see every transaction I've ever made.
@@imnothere202 No you didnt unless you were using a hardware wallet. The transactions linking monero to your IP have been tracked anyway. Nothing on the internet is private
Hard money is far more valuable than private money. Bitcoin is hard money with the option of being private money with second layer solutions.
why aren't monero or other privacy coins considered "hard money"?
Bitcoin is not hard money. Gold is money. Bitcoin isnt even private.
@@twl148 monero will resolve to a constant rate of inflation after hitting ~18mil cap. Bitcoin will never exceed 21 million. Big difference. Monero is a currency that Milton Friedman would have invented, he was a proponent of constant rates of money growth. Also monero emulates gold in this regard, new gold is mined at about 5% per year. Bitcoin is entirely novel, rigidly scarce. Bitcoin is the hardest money.
@@AnthonyEbin Monero inflation is still slower than Bitcoin. While yes it's true that bitcoin can meet the definition of hard money it might not be useable if nobody is keeping the network up because of the lack of mining rewards.
@@motori8088 on the first point, exponential vs constant rates is the difference. Inflation in bitcoin shrinks exponentially.
On the second, mining rewards have been shrinking since inception yet miners have only expanded operations. Reason: value of rewards has gone up. Plus, there's always going to be transaction fees.
In the nicest way this ages quite badly.
Does it?
Really?
No...
"gold isn't useful for anything" lol yea except for all electronics
Libertarian Andy over here
I'm pretty sure only a fraction of gold is used on electionics
>stands at the cash register for 15 minutes as my transaction is confirmed for a small fee of $10 for my $5 sandwich
Or you can pay instantly for free with Bitcoin ruclips.net/video/DTJkvp8fE2A/видео.html e.g. at Starbucks in El Salvador
We need a Monero critique video from you man
El Salvador is using bitcoin as standard currency followed by dollar.
kinda ,, they are forcing a KYC app with a custodial wallet so they can freeze your funds
@@twl148 well, it is the next logical step, after all, by design bitcoin is already very easy to track
@@twl148 Source for the part about the forcing? The legislature itself states that they can use any wallet they please
@@tearnfourstar The people there dont trust bitcoin
I don't want my child to be able to see every transaction I've ever made.
Monero
@@freedomofspeech2867 Not private
@@jonathanolson772 only if you go through the process of opening yourself out, which you need actual effort to do.
@@jonathanolson772 how
@@freedomofspeech2867 Nothing that isn't airgapped is private
Based Luke Smith. BTC and low time preference is going to send the whole civilization to moon (figuratively and maybe otherwise).
A consoomer economy would've never taken off had we remained with the gold standard... it'd be too cumbersome to have a credit and debt system if the currency cannot be adjusted for inflation, since money ought to reflect a concrete asset (remember, 1929). Our system had from it's inception been rigged to implode and fail; when you're bound by a currency that can arbitrarily and infinitely be produced and is realistically never scarce, it's devalued the less it's recurred and the more it's in circulation. We realize it's effects now that 40% of dollars in circulation have only recently been printed. It's not looking good, folks.
keep parroting the fed narrative
WTF.
ЧЕгО?
Ä
@@newmilleniumblowjob not sure how you interpreted my comment as propaganda for the fed. The gold standard has it's limitations when embedded in an international market, as the crash in 1929 evinces, but it's an overall sturdier and more reliable currency than fiat money could ever hope to be. Fiat has propelled the modern consoomer economy by indebting it's citizens, defacing itself and forcing people into modernized indentured slavery (also known as wage labour).
But muh gubment splunking
Fiat currency is like posting an armed Iandmine in the mail, but it’s addressed to your own house and all you can hope for is that it doesn’t ever explode.
don't let your savings die to inflation just buy bitcoin
Hard Mode: How is BSV not Bitcoin and what makes BTC Bitcoin.
Short answer, BSV is Bitcoin, BTC forked away in 2017 into some cripple coin
And when there's no electricity?
caring about money will be your last concern at that time
@@smit17xp bullshit
@@fredsting9515 ok nocoiner
@Fred Sting, dude just relax. BTC is for blind zealots, who believe, that global economy will collapse, yet some magic force will support the electric grid needed for their crypto-farms...
If there is no electricity, then the money in your bank account will be just as non-retrievable as bitcoin.
BTW, unless a significant proportion of drives that the bitcoin blockchain gets stored upon (which is stores all across the world) get destroyed, your bitcoin will remain save until electricity goes back on again.
You seem to be avoiding an explanation of how an explosively deflationary currency could even be sustainable. In this video you proposed that bitcoin would increase in value by an entire order of magnitude before suddenly slowing down its deflation to correspond with gdp growth. You are trying to fool people into investing arent you? If I was given a loan with bitcoin for something it would fucking increase faster than I could repay it implying its deflation was stable. My boss would have to cut my wages over time just to balance the books for gods sake.
Bitcoin is not deflationary. Denominate interest rates to real terms (which is already done). The world of hard money is not based on loans and debt like the economy now anyway.
@@LukeSmithxyz Why not real money?
Lol
I personally just see it as an easier stop-gap measure to decouple one’s self from fiat and nothing more. Unless I’m misunderstanding something I think you’re making the mistake of flipping the equation for the sake of Keynesism
Just like my old pokemon cards...
You're saying Satoshi Nakomoto with such confidence.
What
What does they mean
Why would bitcoin be the thing to replace the old system and not Klaus Schwab™ coin?
The scarcity is not really there when anybody can mint endless different sh*t coins and the network effect is really the only thing that bitcoins has going for it.
Endless shitcoins are not an issue because whenever there is no demand for alternatives nobody has an incentive to accept them as form of payment.
@@ChucksSEADnDEAD The only reason better altcoins dont get more market cap than bitcoin is because Bitcoin is marketed by the system using advertising and paid influencers like Luke
@@jonathanolson772 That's absolutely irrelevant to the point. I'm stating why creating altcoins doesn't threaten scarcity.
@@ChucksSEADnDEAD It is absolutely relevant. If there were no campaigns to get certain ones forced in everybody's faces then the better cryptos would win if they were actually being used as currencies, but nobody trades them for goods and services, they only speculate on them with USD. Businesses that accept cryptos trade them for USD immediately upon receiving.
@@ChucksSEADnDEAD well look at what happened to monero after glowies noticed it becoming popular, monero is everything Bitcoin wanted to be and more, despite that it’s still popular.
Thanks Luke, just bought 0.002 BTC
ngtmi the take away is that you should buy monerio
@@CheatRecon1 oh no sir please
"Written on top of bitcoin". Yes, that is where we are now. It's hard to stay optimistic of the once "revolutionary" potential of bitcoin when there is literal crypto bloatware everywhere. I want to believe that the technology can stand on its own by virtue of what decentralization provides but I'm more and more concerned by what is happening that it might have been a psyop this whole time.
Satoshi Nakamoto? A hero hacker libertarian on the p2p forums that freed us all from the binds of the US dollar and disappeared into the night? I once believed in fairy tales...
SN is definitely a psy-op, but the potential upside of decentralized zkp-protocols is huge for mankind imo. Monero and zCash today are the "revolutionary" projects, in that they represent anarchism vis-a-vis their anonymization and privatization of transactions. In my humble opinion, the purpose of the SN psy-op was to introduce (relatively) simplistic yet pioneering decentralized ledger technology to then be able to roll out their Central-Bank Digital Currencies (CBDCs) track-trace-control grid.
The problem is that the value of Bitcoin is at the mercy of a bunch of shitheads trying to get rich by endlessly pumping up the price and repeatedly crashing it.
Bitcoin would be a great investment if there wasn't billions of dollars in leveraged investments inflating the fuck out of it.
The vast majority of Bitcoin value is coming from butterhand flakey fuckhead investors who have no plan on holding it long-term.
If the current value was from people who actually use it as currency then I'd use it, but for now it's been temporarily turned into a pyramid scheme.
If Bitcoin ended up being the most powerful currency ie; the most used for trade within and between countries, then would that reduce the value of everyone's traditional currency? At some point will there be a half way house moment where people literally have to completely switch or risk their traditional assets massively decreasing over night? How would this effect things that people care about? Can we imagine a not so distant future where a loaf of bread will have two currencies besides it, $ and Bitcoin? Then for the laymen will see the value of their currency compared to a loaf of bread? When I think about it like this it really blows my mind...
probs gonna be a crypto-like currency which is propped up by the government, some sort of token, which normies can understand and use but the name is tied to a digital identifier but with extra benefits detached from the traditional system
Bitcoin is so much better than gold.
What if governments ban it? Sure, you can still use it but normies won't. So the price would plummet
So many people are already on it; it’s unlikely a ban can be so unilateral as to cripple it (to the point that normies can’t/ won’t use it)
A good example is marijuana; it’s illegal yet normies use it all the time. Because it’s ubiquitous enough to be easy for the normie to obtain
It’s very unlikely Bitcoin can be banned in a sufficient way to inconvenience normies enough that they give up on using it
@@KaiusKC really depends on the penalties. In the 30s you could go to prison for 10 years for owning Gold
@@wunder1385 Nobody except banks complied. When CBDC arrives you can bet that all cryptos will be banned.
Their puppet masters are already invested in it's success. Plus imagine the power of seeing everyone's transactions at all times. Dumb boomer kaiks don't know you can just switch to alt-coins.
@@freedomofspeech2867 Fuck your bits zoomer. I won't let you debase money to the level of digitization any further than it already has been.
Imagine if they start using Blockchain/NFT to enforce DRM...
No
Very interesting video my man! The only thing I don't quite get is why Bitcoin is the coin everyone gravitates to. Aren't there coins that are just technologically superior and would replace it in the long-term?
Imo it's because of fame.
ultimately there is a huge factor of usability when it comes to money or other value exchanges is common agreement. - While it'd be wiser to use other coins, there would need to be some kind of mutual agreement on the fact that this is THE CRYPTO that we use.
Bitcoin has already quite massive popularity in the society so it's the natural choice.
It's due to three reasons:
1. Network effects. Bigger networks are more useful.
2. The "technically superior" coins aren't really technically superior, because their networks are much more centralized and the hash rate is much lower than bitcoin's. Which means they are easier to attack and regulate.
3. If a "technically superior" coin ever got bigger than bitcoin, then it would destroy the entire cryptocurrency market by creating extreme uncertainty. No coin could ever claim to be a safe store of value, because a newer, better coin could come along tomorrow.
@@SpykerSpeed So Bitcoin's price is faith based? Fiat anyone?
@@jonathanolson772 All prices are based on faith, including gold, real estate, fiat, etc. Only difference is, bitcoin is mathematically scarce while those other assets are only physically scarce (and the supply can be increased).
@@SpykerSpeed Crypto is digital. I dont care if you make infinite bits scarce and trade them for USD based on an exchange rate set by KYC exchanges. Those bits are still worthless to me regardless of whether they are scarce or not. I dont want life to be more digital. I dont want to live in the metaverse.
The volatility is the product of a truly free market experiencing price discovery. There’s nothing to withdraw into.
no its not there is no regulation so there are all sorts of market manipulations going on like wash trading, spoofing, etc.
@@jonathanolson772 youre lost.
Bitcoin will take over.
Now is the time to buy below 20 and mid 20k.
2030 few hundred k
Gold “can’t easily” be copied? How can it difficultly be copied?
Gold plated tungsten bars are a great way to counterfeit gold. They do it in China all the time
Gold has commodity use
Less than
If it was only valued for it's industrial use or commodity use it would be worth far far less, infact silver would probably end up being worth more than it. The reason its worth so much is the same reason bitcoin is worth so much.
@@archygrey9093 Ever heard of jewelry?
@@jonathanolson772 yes
All coins are shitcoins.
I only deal in souls :/
it's pretty cringe-inducing to hear people naively talk about "Satoshi Nakamoto" as if it's not some character the central banks invented.
Lol fool.
Remember your comment in 2030-2040
I'm all in on Bitcoin because I think it's the one that's going to win out at least in the near future but I really hope that it eventually gets supplanted by something like Monero or ARRR.
In the near future yes but not long term, bitcoins fees are insanely high noone would use it for everyday purchases, its public and mining is centralised because of asics. Its one of the most inefficient payment systems out there. No im not an environment cuck, i know the miners arent at fault for how the electricity they use is made. If they cared about the environment and not money they would legalize nuclear power. Also the blockchain is public and i cant see myself using bitcoin for anything except as a stock because normies buy it but the price could crash easily because theres so many fucking whales in bitcoin.
just wait for the next halving
Brian Laundrie you're ALIVE ???!!!!!
Plenty of things are scarce and completely useless. Part of the reason gold is used as a fallback is because it has inherent value as a metal. Comparing the two seems silly.
Luke, you didn't mention that governments can ban coins by law and only allow their own digital currency. Don't you think if big economies ban it, a virtual bank run could happen?
Well, those most invested in crypto right now are technologically inclined. If you were a country it might be against your interest for your forward-thinking constituents to consider leaving with their coins to countries that are friendly to the idea. The US is friendly enough to crypto at the moment, and we have indeed welcomed miners from China since their government legislated crypto out of favor. A lot of game theory happening at the national level here.
they cant really ban it, they can ban the exchanges but not BTC itself and people have ways of transacting BTC that dont rely on exchanges
@@intfamous4001 They can make owning and using BTC as illegal as owning/trading illegal substances. Don't know if it's likely but it could happen and then BTC would be worthless.
@@mnemonic_de Would all governments simultaneously ban it? Or would some governments use the opportunity to attract techies from other countries that ban it? Keep in mind that the most valuable citizens moving forward will probably those good with computers (bitcoin's largest constituency for sure).
Btc shill will not admit that.
1:40 ...WRONG ..Fact: Gold Does a Lot. Actually unlike btc Gold is Key to our World. Simply put, Gold is for example a absolutely Key component on making electronic Chips. Without btc we could still have a functional modern society, without Gold we would not.
And that makes a World of difference. Gold is money, btc is a ledger, one among 13000 ...
oh, i thought it was valuable because there were more people buyin in than cashing out. When more people try to cash out than buy in, it will collapse
MMT is pretty much Moloch worship, which is the entity all the rich and powerful pray to at Bohemian Grove once a year.
There is no network effect. People do not buy Bitcoin to be a part of a network, they only want to sell it later for more that they bought it for 🤣
He means that there are many people deeply invested in the success of bitcoin, that will work adamantly against any competition.
Sounds like most equities though, right?
@@rooteduser623 No. you can value equity based on Cashflow. And you don’t have to sell to a greater fool to see money, you can get dividends or wait for a buyback.
@@thomi77 you can get a 'dividend' through lending and staking crypto also.. But it seems your mind is already made up about crypto which is fine too. Good luck with your investments.
Like gold... What's the difference? What are you going to do with your gold other than sell it for fiat?
Remember 1946 Hungary...
I dont get why everyone makes such a big deal about "ThE DolLaR iZ GoInG tO ZEro!" Like no shit, they publicly tell everyone that they aim for a 2% inflation rate on purpose. Thats why you use your dollars to buy other assets like stocks, real estate, precious metals and bitcoin. All of these other asset classes accomplish the same thing as bitcoin from an investment standpoint, except that all of the other asset classes have inherent value. Bitcoin doesnt really.
Marketcap metric is wrong. Let me explain when price of BTC goes up everyones coins gets worth more. So bassicly to reach a 10 trillion marketcap requires maybe 3-4 trillion of actual money to get there. Because when price goes up everyones coins goes up. So to get to 10 trillion marketcap will be very easy. Something to think about. Also if you are in 2021 and still do not understand Bitcoin that is on you, there is so much information about Bitcoin now. Stop beeing ignorant and start educating yourself.
I don't discount network effects, but I think in the case of crypto a better technology than BTC will win. It's easy to switch coins if you wish to, and if you already bought BTC you know how to do it. In cases where it is easy to switch options, technology always becomes a race to the bottom in terms of cost and a race to the top in terms of ease of use, effiency, and speed. Because you don't have to know how crypto works to use it, crypto will slowly morph into something like the chip industry. The overall cheapest / best option will win. It has already been happening; BTC has been losing market dominance in the past few years. Sudden movements of value may cause liquidity problems, but in the end they will smooth out.
Given that the statements made in the video are 2 years old, we are no where near seeing bitcoin or any other cryptocurrency taking over gold as the "store of value" asset. I truly appreciate the security provided by crypto but I still can't make sense of it as currency. I agree that the market cap is going to go up, therefore, I should invest in (buy) bitcoins. Since each bitcoin is going to only become harder to get, an ever increasing scarcity, why should I use (spend) my bitcoins for any transaction? As a rational investor, it would make more sense for me to wait until the price of bitcoin has gone high enough and then sell my holdings. This was the problem of mercantalism with the gold standard, people will hoard. This is the problem of the cryptocurrency market. It is in nobody's interest to use it as currency.
Luke Smith
Just because BTC was the first popular crypto currency that doesn‘t mean it should be the next gold. It has too many limitations such as high fees and low transaction speed, there are other way better crypto currencies out there.
But I am not sure if that is really what the future will look like. Basically what it comes down to is the question of whether control/regulations are needed or not. Imo they ARE needed to a certain degree. A future in which only crypto currencies exist would be similar to anarchy, which is not a desireable future for anyone who isn‘t an edgy teenager.
Curious if you have any takes on cars and which one you bought
i think i saw it in a video, it looks like an old nissan his parents probably gave him in high school and he's been driving the same car forever like a smart man.
Well Bitcoin is valuable because it relies on greater fool theory so all its value is perceptive and as a result often overvalued.
You are the fool for not understanding bitcoin.
Do some more research
The only thing gold has a one up on crypto about are solar flares. They WILL come in the future. Often enough that it matters.
@@joey199412 I'm not sure if they can or can't travel around the globe. Also, what about data corruption? Is there really enough data to reassemble every wallet from the other side of the globe? If you've physically written down the private key maybe. Well, I guess that applies to digital banking too, but not gold. The bigger point is that crypto relies on a functioning internet infrastructure while Gold doesn't.
I'm just going to buy Silver and Monero for my value storing purposes. Join my shiny rock and impossible math problem ventures.
Very helpful informations , Thank You
Bitcoin will drop to 0, its noting but a story, not even a scam.
Well it's really just a ponzi scheme.
bitcoin is a scam made by the fbi to kill all of us. use only doge coin the superior coin
@@frankeke8541 Praised be the Doge
@@archygrey9093 bot
@@jonathanolson772 ???
That which is valuable is what the leeches running the country will cling onto when they cry "I'm bankrupt! Plz don't go! Let me borrow money from you. I promise I'll pay you back soon (1000 years = 'soon')!"
I lived through ussr collapse and power shortages were a usual thing. I think its better to have a currency that can be printed as a number on paper or even bottle caps
Metals
Thats why you have both crypto and metals, they complement each other very well.
We'll mine the blockchain on paper!
Anything bitcoin related causes immense pain for me. As i nearly invested when it was around a dollar per coin. Fuck me.
why would mindless number crunching be valuable?
Bitcoin isn't trustless. Majority of miners can vote to introduce any change they want but then the Bitcoin cost would plummet so they are less likely to do this.
Many of the deficiencies of gold are solved with physical silver. I think crypto can have some value but nothing will ever replace real physical assets especially silver when you consider that it is not reliant on technology and can be traded more anonymously than cash.
Can you recommend any good sources which talk or write about these arguments (and on crypto related stuff in general) more extensively? Hard to find smart people talking about the potential of crypto in a rational manner. Ideally someone who addresses valid concerns like ecological sustainability, privacy and potential government intervention as well.
Check mental outlaw videos. I remember him making one about Chia, a new cryptocurrency that uses SSD instead of ACICS and GPU, as an alternative because of the supply chain shortage and the hoarding going on , and also how new mining protocols have emerged (proof of stake vs proof of work) that offer to provide a more even playing field for miners, so the big whales won't have more of an advantage , simply because of their access to free energy and faster internet, or possessing large mining farms.
The Lex Fridman podcasts with some of the leading developers in the space I think are the best jumping point for understanding the tech and vision as opposed to the hype.
Check out Craig Wright's Learning Bitcoin with Satoshi.
This dude says gold doesn't do anything...lol this guy is scamming you
You clearly didn’t understand what he meant
when you talk trash about keynesian economics or monetary policy, from what point of view do you do it? is it an austrian economics type deal? cause ive seen you criticize ancaps or say that you're not an extreme libertarian but maybe economically you are , and you're just a christian or w/e on top of that so that's why you don't say you're a libertarian
legit question, i simply don't know enough about macroeconomics, i know some basic terms but not much else
Luke this is a very naive perspective, u ignore human nature, just like marxicsm does.
Bitcoin is in fact not the first scarce digital object. Those have existed as early as the first MMOs, and people have been purchasing in game things for at least a couple decades at this point.
@@wvyv In practice though they don't do this, and as such they effectively are "fiat" electronic currencies. In well managed games it is rare for the gamemakers to just spawn things and put them into the in game markets.
This has real world ramifications in that people have been paying for non-fungible imaginary objects for a lot longer than bitcoin and NFT. Eve online is famous for this.
@@wvyv They can be copied but they often aren't, the player base would probably riot if the developers did that to an otherwise valuable item in fixed supply.
These ingame items are valuable for the same reason that old baseball cards or other old collectable (and otherwise useless) items can be valuable.
Bitcoin is libertarian.
Bitcoin is digital Bitcoin and Monero is digital Monero
Can Bitcoin grow your hair back 🤔
hmm, not convinced, will stick to silver and gold primarily. Or maybe I'm just brainwashed by Peter Schiff and Mike Maloney lol
Will quantum computers break crypto?
Gold has, after the fiat of the dollar, been historically a really bad investment.
Good Beard
Wtf Luke is now a Bitcoin maxi?! Cringe! /unscrible
This shitpost was made by Monerochan Gang!
Fool.
Just ignorw bitcoin
You will regret in 2030-2040 for not buying at least 1 whole coin
where are you adds?
Bitcoins value is from being first crypto, the rest is just cope
Perhaps digital scarsity is a one off event
bitcoins not the first crypto
@@BeHappyTo first popularized for sure
how do you rationalize the environmental destruction, though?
If it isn't my favorite minecraft content creator
for privacy subject which one should I use Monero or Firo.
Most privacy people just use Monero
Crypto is just digital playing cards.
Just strings of zeros and ones with a price tag
Cash is just old politicians playing cards. But unlike crypto they're licensed by a bunch of shady people in bed with the government.
I prefer wrapped Bitcoin 😌 it's like a little candy 🍬 😋
Bitcoin is extremely inefficent
I would prefer solana
I thought bitcoin couldnt be directly built on top of like ethereum and other "Second gen" crypto currencies?
do you mean btc or bsv by bitcoin? what your opinion on bsv?