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It is that time to have a little heart-to-heart among ourselves.
With the recent hit that Bitcoin has taken, and seeing how just about all cryptos (including Steem) have taken a hit, perhaps now is as good a time as any to have a chat about where things might be going wrong.
Let me kick off this discussion with three lines of thought.
Firstly a question.
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What is it That Gives Bitcoin or Blockchain Value?
One of the first questions that the skeptical mind produces is invariably "Where does the money come from?" and I have seen more than one pair of eyes glaze over at the mention of block creation and transaction verification and the like.
To be fair its kind of like magic, but then again I regard the true inner workings of computers to be akin to such - and yet the generally work just fine (up until their warranty expires - usually).
Of course, some things can throw a wrench in the works... and this brings us to Jamie Dimon.
With Bitcoin Reeling to Somebody's Opinionated Whims, Why Cannot Other Cryptocurrencies Simply Stand Upon Their Own Two Feet?
It is no secret that Jamie Dimon, CEO of JP Morgan fired a broadside at Bitcoin's legitimacy recently, which, along with China's lock-down upon crypto, has given Bitcoin and other cryptocurrencies - a bad time.
While Bitcoin is considered something of a gold-standard in crypto - might it perhaps be time for the various kinds of crypto currencies to emphasize that which makes them distinct and thus non-dependent upon Bitcoin.
It may unfortunately mean that they would be less able to ride upon Bitcoin's successes in future, but the mesh of dependency would also not have Bitcoin as a singular pillar. Perhaps other cryptos can create their own worth independently of Bitcoin.
Now... to finish off with something lighter...
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Let Us Reflect Upon Times That Crypto Wealth Translated Into Physical Forms of Prosperity.
While I am but a minnow (or might I be a mere plankton?) and thus have no such tales of my own, I have heard enough stories about how Steemit has helped to pay peoples' medical or other bills, or how somebody might have bought a car and such.
So in these times when the crypto atmosphere is just a little nippy, let us gather inside near the crypto-fire with a hot cup of cocoa, and dwell upon the good times.
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With positive vibes shall come positive times - and as the weather itself grows nippy perhaps the sun shall shine upon crypto once again.
The above are but a beginning to this discussion though. Feel free to expand the discussion with your own crypto-related point(s) below!
If you found this post interesting and would like to share this with your followers and friends then a resteem would be appreciated.
If you have some feedback for me then feel free to share your views in comments. As a discussion - I do hope that we'll have some great comments! A civil conversation can go a long way.
Sincerely,
Previous Post: The Danger of Trying Too Hard. Relax Fellow Steemian!
For me it's a case of why haven't more people realised just how valuable Bitcoin is?
It has scarcity, it cannot be counterfeited, it has adoption by a small but rapidly growing user-base , it cannot be minted without time and money and there's a set limit of how many coins there can be.
Compare it to any fiat and it wins hands down. But anything we give value to can change when panic sets in BTC is prone to that because it's still relatively new and people are constantly asking this very question.
As to the last point, I'm hoping Steemit can pay for preamps and mics so I can record an album I've written, might take a while though...
Hey there @Purpleprose. Thank you both for your up-vote as well as the excellent comment.
Those are very good points. :c)
Not being able to be counterfeited is a big plus.
I am not so sure about scarcity - though I understand that demand versus supply is a thing.
If I am not mistaken Bitcoin exchanges involve a fee. Where does that fee go?
I'm not knocking Bitcoin but I do find my lack of understanding of Bitcoin to be disturbing.
Oh yes. Steemit is hardly a get rich quick scheme. At least not for us regular folks. And to a point that isn't bad. That being said, the disparity is real.
And that being said, every little bit helps.
I do hope that you'll make it for your preamps and mics.
Perhaps you could make an appeal to fellow artists on Steemit? Perhaps get into a collaboration that will get you access to that equipment sooner - in exchange for your assistance with something else?
There is more than one path to one's destination. :c)
Thank you again for your thoughtful comment and everything else!
Some of the fee goes to miners who confirm the transaction ( TX fee when you withdraw) but the currency exchange fee goes to the exchange itself.
Thank you for clarifying @purpleprose. :c)
He who can no longer pause to wonder and stand rapt in awe, is as good as dead; his eyes are closed.
- Albert Einstein
Value is same as everything else. It is a function of demand and supply. Supply is fix and predictable. So it depends on demand.
Hey there @lukynator. Thanks for the up-vote and comment :c)
Don't mind wise-old-man. Its just a quote-bot. ^_^
Well yes, you make a fair enough point.
Supply and demand do affect value - but surely there is something more. After all - if we look at fiat money - the true value of money could be said to be directly related to what one can trade it in for. :c)