What do prices tell us? Overall, they do not have much use unless you are trying to buy or selll an asset.
In this video I discuss how they do reveal one thing: utility. Since we know all of crypto is getting it, we are now seeing some of the issues with most tokens; a lack of utility.
▶️ 3Speak
Store of value = the more you preach maybe one day everyone will believe it. Made believe is the strategy. Repetition.
Transactions = XMR does it right and is fungible by default Any top crypto can easily transact and move value for average person like BTC, and cheaper.
BTC's advantage right now is the liquidity and name recognition, synonymous to crypto. This advantage may be less and less of an importance as crypto space continues to evolve and masses become more educated and aware.
Bitcoin stands out and is unique. It can potential serve a role because of the association people make. However, even if it accomplishes that, it is not where the major innovation and economic expansion comes from.
It will have its place but I expect others that are expanding economic output to fare better.
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With this market as it is, the lack of usefulness is undeniable. And as for the prices, it is a reference to buy or sell, so we must not let ourselves be carried away by despair and be calm for the moment.
Utility is lacking hence there is little resiliency. This is something that is being exposed now.
Crypto is not a safe haven but another risk on/risk off asset class.
This is why use cases and development is vital.
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In the end, you can't eat fiat money either. I'll stick with food and water. Everything else is luxury. 😀
Have a nice day.
But you can buy food with it in the grocery store in the corner. And you can eat that food. As I currently know none of the grocery store are accepting cryptocurrencies as a payment method. This would be one of the best use cases for cryptocurrencies. And if the stores, markets and restaurants would accept cryptocurrencies, then we would not need to sell cryptocurrencies for fiat money. We could use cryptocurrencies directly.
Bro, Fiat money is a legal tender given by government to its population for trades, that is why it is useful, but on other hand it takes a lot resources to print money or mint coins. Government will eventually fend off fiat money into digital version to save cotton, chemicals, machinery, labor, alloys and so many other resources.
But, it will take some time, a decade, century, maybe more.
!LUV
I know. Cryptocurrencies are also (slowly) becoming legal tenders. Or at least the Bitcoin (BTC). For example it is already a legal tender in El Salvador. But maybe for not so long, because IMF urges El Salvador to remove Bitcoin as legal tender. We will see whether they will remove it or not.
@xplosive, @emaxisonline(1/1) sent you LUV.
wallet | market | tools | discord | community | daily
The USD is already digital. Very little is actually in physical form.
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There is a lot more required to give value to cryptocurrency than just a payment system. This is just one use case and minor one in terms of global transactions.
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For now. When paper money becomes worthless (maybe that's not so far off), the grocery owner might decide that nails, screws, alcohol, or even cryptocurrencies are more valuable than paper money.
I have known groceries in the past who were willing to accept means of payment other than government-imposed paper money because of the uncertainty of government money.
Especially in this day and age, we would be well advised not to rely exclusively on things staying the way we know.
We grow our own fruits and vegetables here and exchange them regularly with our neighbors. This way we can be reasonably sure that this will work even in worse times and we can support each other when there is a lack of money for food or for food itself. Or when there is no grocery anymore. 😁
How do most people get that without money?
Electricity is nice too. How do you propose getting that?
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I can only speak for our small community in our neighborhood in a more or less rural area. Some landowners have more land than they can farm. We have received permission from them, which can be revoked at any time, to grow our own fruit and vegetables there if we keep the farmland in good condition in return. We have our own water sources there which is important if you live on an island like we do.
And since we have been doing this for several years, a certain routine has developed in the exchange of food and services. You scratch my back and I'll scratch yours. We don't need money for this.
We don't even pay rent at the moment (or only very rarely) because I take care of the house owners' garden in exchange when needed.
I don't know if this lifestyle is advisable. We are very happy with it at the moment. Maybe it is also something for others.
We live in a very sunny region. Solar panels are extremely useful here.
Another good option (if you live in an environment where you have plenty of rain and waterstreams) could be the use of a Stream Engine.
Otherwise there are windmills, combustion engines, biogas plants and much more. Choose something that suits you and get started. 🙂
And it seems that folks are already dissatisfied. This has always been the case. I hope the market's exposure does not drive people away too quickly.
It will.
People react to markets. This is why the bear is the best time to build. So many leave.
The key is to keep building and expanding. When the bear does go back to sleep, which it always does, we will see those who utilize the time in much better position.
Keep expanding across Ghana and educating people about what we can do. This should get them excited and motivated to participate regardless of the markets.
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Thanks sir. Building a stronger team for the ecosystem is our priority.
The focus on prices is what drives people and I think it's because there are some people who feel validated if prices are high. It means that they were right but I don't really think it holds when we are in a bear market. Utility and community are key to making these projects succeed.
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I agree with you. People cannot rely upon self validation so they have to look to the markets.
This is the mindset of losers. After all, do you think Warren Buffett is worried about his portfolio due to this situation? He knows what he is holding and understands, as much as possible, what it will do long term.
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Summary:
In this video, the speaker discusses the recent crash in the crypto markets and its implications for various entities like companies, countries, and central banks. He focuses on the challenges of holding Bitcoin as a reserve asset due to its extreme volatility. The speaker talks about the importance of stablecoins being backed by stable assets, like the U.S. dollar, to avoid financial risks associated with volatile assets. Furthermore, he delves into the limitations of Bitcoin as a store of value, emphasizing the need for increased utility and network effects to reduce volatility. The discussion highlights the flaws in the current crypto market and stresses the significance of projects that offer real utility to maintain stability during market fluctuations.
Detailed Article:
The speaker begins by addressing the recent crash in the crypto markets and its impact on entities like Tesla, MicroStrategy, and El Salvador. These entities, especially MicroStrategy and El Salvador, which heavily invested in Bitcoin, are now facing challenges due to the extreme volatility of the cryptocurrency. He emphasizes that while Bitcoin can be volatile in both positive and negative directions, holding it as a reserve asset can lead to rapid devaluation, posing significant risks for companies and countries.
The discussion then shifts towards stablecoins and the importance of backing them with stable assets like the U.S. dollar to mitigate risks associated with volatile assets such as Bitcoin. The speaker underlines the dangers of collateralizing loans with volatile assets, as evidenced by the recent substantial drop in Bitcoin's value. He explains the necessity of over-collateralization to protect against price fluctuations and uncertainties in the market, especially in the context of short-term collateralization.
Furthermore, the limitations of Bitcoin as a store of value are explored, with the speaker questioning its utility beyond being a decentralized and secure means of transferring wealth. He highlights the need for increased utility and network effects to drive more value to Bitcoin and reduce its volatility over time. The speaker also touches upon the challenges faced by merchants in accepting Bitcoin due to its price fluctuations, underscoring the importance of stablecoins or instant conversion to fiat currency for widespread adoption.
In conclusion, the speaker stresses the importance of projects that offer real utility in the crypto space to withstand market volatility and become a safe haven during turbulent times. He contrasts stablecoins' stability with the inherent volatility of cryptocurrencies lacking utility and network effects, noting the adverse impact on payment systems, collateralization, derivatives, and investment funding. The video serves as a cautionary tale about the risks associated with holding volatile assets and underscores the necessity of real-world applications and network effects in ensuring stability and sustainability in the crypto market.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.