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What a novel and original argument.

Actually Bitcoin and Ethereum have a known supply and limited inflation (Ethereum is actually deflationary now) so best suited to not go to zero. The USD on the other hand…

https://fred.stlouisfed.org/series/M2SL

https://ultrasound.money/

discuss

eloff|3 years ago

With stocks, you're purchasing future profits. That puts a floor under things. With crypto you're purchasing??? There's no floor. It has limited utility.

dotnet00|3 years ago

Technically, with crypto there's always the less than legal or privacy oriented stuff. Unless you're expecting all that to suddenly disappear there's still utility to back its value there, even if not to maintain its value at the rather overinflated values cryptocurrencies like Bitcoin have (which are less practical for such purposes compared to say, Monero).

Plus, for the value to completely zero out you'd need lots of large organizations who have lots of money (be it ones who've borrowed it or ones who are 'holding' it for others) to not only run out of said money but also be unable to pull in new people with get-rich-quick schemes. Miners and stakers would also need to completely lose trust in cryptocurrency.

So, to zero it out, you would need a global economic crisis so large that it educates pretty much every 'sucker' out there, which is pretty unlikely to happen right now.

WalterBright|3 years ago

I've had stocks go all the way to zero.

legutierr|3 years ago

Future profits of a public company can't go to zero? Bankruptcy is a thing, after all.

How much are Pan Am, Enron, Lehman Brothers worth today?

danuker|3 years ago

The floor denominated in dollars can still go to zero.

The utility of Bitcoin is its global payment network.

JumpCrisscross|3 years ago

It’s nonsense to argue Bitcoin or Ethereum aren’t subject to inflation when their price in dollars has been, at best, flat, while the latter experiences record inflation.

bb88|3 years ago

I argue that inflation is an increasing lack of purchasing power. We're off roughly a third of the BTC peak last year, so would that not be 300% inflation looking at BTC alone?