Posted: Feb 17, 2019 2:50 am
by jamest
Thommo wrote:Insofar as you're being naive (stupid is your word, not mine), it's in thinking that governments couldn't regulate cryptocurrency rather than thinking that governments could regulate gold.

That thought has crossed my mind already, I just have no idea how they could do that with an intangible and decentralised global asset?

There is no form of currency which has a value independent of your fellow human beings. None. There's no commodity that does, there's no asset that does. This is not a reason to invest in some specific thing, it's a marketing pitch.

Cito's tip about Vodafone is a case in point. Vodafone generates profits, which are distributed to the investors. Bitcoin doesn't do that. Vodafone has a balance sheet of assets, which include real estate, intellectual property, buildings and machinery. Bitcoin doesn't have that.

We are comparing currencies here, not companies which generate income. I haven't invested in a company, but a currency. There is no intrinsic value in any fiat currency, a point you don't seem to grasp.

The speculative value of gold is underwritten by the demand for gold as a fabrication material for electronics and jewellery.

Most of the demand and value in gold is as a hedge against fiat currency. I'd like to invest in some, though given my previous post I'm seriously reconsidering that idea.

The speculative value of Vodafone shares is underwritten by the demand for a share of dividends and the ownership of land, buildings and profitable trading brands. The speculative value of Bitcoin is not underwritten. Yes, you could win, but you're gambling. And you're gambling based on some frankly ludicrous arguments and "probability" assessments.

Again, what you are talking about here is irrelevant since the discussion should only be a comparison of currencies.

ETA: If government collapses and "the shit hits the fan" numbers on a computer ain't going to help you.

Unless all governments collude to permanently shut down the internet, the capacity to use cryptocurrency for transactions will remain. You can purchase an ever-increasing amount of goods on the blockchain these days using cryptocurrency.