Hey i appreciate your thoughtful reply. Let's me know you're serious about the topic. Most around here are content with making a few bucks from this structure here that feels more like a pyramid/ponzi scheme than a significant project. However i'm sure some would disagree with me. That's fine.
I think what i'm looking at is. Most economist accept and agree that there are 8 cgharacteristics needed to be an effective money. They are as follows:
General Acceptability:
Portability:
Indestructibility or Durability:
Homogeneity:
Divisibility:
Malleability:
Cognizability:
Stability of Value:
I think our discussion is around the idea of crypto being an effective money. I think what crypto pretty much has been is a method to fund projects, like in place of ipo's that otherwise probably wouldn't have been funded. That's not a necessary bad thing. Some projects that don't get funded we find out years later were good projects and should have been funded.
The big issues though is that this makes it less of any type of money. More of an unregistered security. Which is why in large part we've got many that have went on to be bad projects or just outright scams through the space. If we look at some of the characteristics it's quite obvious many don't get met on this list. For example " General Acceptability".
Often times besides speculation over 90% of these cryptocurrencies i think it would be disingenious to say we can take these cryptos to a fair amount of places and they be accepted. The reality is not even bitcoin is likely to be accepted anyplace you go.
Indestructability and Durability. Well why would i want something indestructable? That falls under security. I don't want it easily destroyed or corrupted because then i can't use it. Whereas crypto doesn't seem to necessarily fall lin this category it actually does. Systems like HIve and dpos systems whereas they do seem pretty darn secure. Remember the systems are still pretty much in the hands of maybe like 30 people we call witnesses. Is that the best security? Probably not. So i wouldn't say it's indestructable in that sense. I'd say it can likely be corrupted and destroyed in a great metaphorical sense which is as bad as in a literal sense in this case.
Another great characteristic it misses on is cognizability. if i say something is cognizant to you. It means you're aware of it. You have knowledge of it. Crypto is still one of the last greatest mysteries to most people. Most people you probably will come in contact with won't fully understand crypto enough to use it and know what they are doing. I think if we're honest we're going to run into more people that don't understand or use crypto than the alternative.
Stability also of course fails to meet the requirement. We know the crypto swings are so ridicolous as we discussed. The reality is if you take something like the us dollar. As much as we believe to be somewhat enslaved by it. Nobody in their right minds would take most of their money and put it into any crypto. Even the biggest bitcoin believers how unusual is it for them to put most of their money into bitcoin when they call it sound money. If they really believe what they are saying we should see many more billionaires saying well cryptos like bitcoin are such sound money. Why would i risk so much of my money in cash that casn be taxed and stolen by governments.. it should be like 10% of their holdings in cash and like most in crypto if they really believe what they say lol.
Although crypto does meet some of the requiremetns of money. It's far too many i believe it doesn't meet. The reality as well is i can go pick up a trinket or a bartering stick and you agree that it's worth whatever i say to the point you're willing to trade goods to me with it. However that doesn't cover a major characteristic of money like general acceptability. Nor does it mean anything beyond just our circle of belief. I personally don't feel that's going to be significant enough to be considered a money. Unfortunately most cryptos even bitcoin miss the mark i think to satisify this. Millions of crypto only a few thousand people accept etc., So i think that's what i'm really getting at. At this point sounds like a way to skirt around the law and raise money. I don't think that's necessarily in every case a bad thing. However it still wouldn't make it a money.
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