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Over valued.

I don't get it and see it as even more as a tulip-trade (as we dutch cal such things since out tulip mania) than cryptocurrency.
**when I look at items I don't look at the price they sell at but the real world value...


lets take one other tulip trade :

a house... is a place to live.. that is it's purpose. It is a consumer good that eventually will detoriate and break down.. perhaps slower than a new car or pair or boots, but over decennia it will..
-so logic says that houses like all goods like that should depreciate in value.. even if the price of new houses would slowly go up because of inflation... in a healthy economy the price of a used product should always be proportional to how much of it's usable lifespan is already used up..
***
another way to look at a house is as a collection of materials.. materials that have cost labour to harvest, create, transport and finally put together in this usefull form we call a house..
***
finally we should look at land... if we presume that on a national level all land belongs to all the citycens (no labour went into it after all and thus in a fair economy without theft.. than every person in my densely populated nation should by birthright be entitled to about 2300m2 of land.. or a little over 2 acres for you americans...
-> in a moral situation all compagnies etc should pay rent for the land they use...that is paid out as divident equally to all citycens.. so that those who use themselves under that 2300m2 recieve money and those that go over will need to pay.
**but there is with these numbers no shortage of land.. for the 130m2 an average house stands on.

so a brand new house by these logic should given the price of materials on a global market.. and the price of labour in ours should cost about 30.000 euro.. and a 2d hand house only a fraction of that.. however it does cost actually 450.000 euro... I see in that a huge overapreciation articifically created.. and while house prices have kept going up.. and everybody expects them but logical economics based in the real world say.. it is a tulip trade.

->
now to crypto coins.
-their real value lies in facilitating trade.. they are as such a service as they have no intrensic value in themselves.
-and as a product they do very poorly so.. they are at the moment utterly inadequate to compete with excisting fiat money.
**not only is the acceptance of most crypto currencies much less that fiat (a point that is making crypto having much less value now.. but that theoretically could be overcome should the rest of it be sound)
**but it takes too long to make a transfer of funds.. where with cash it is instant.. and with debet it is also pretty much instant (microseconds in fact) it can take many minutes to even an hour to process a transfer in crypto... and that is with todays volumes.. should it replace very debet and cash transaction in even ONE nation.. it would take months to buy even 1 thing..
-the technology is simply inadequate
**add to that the cost to make a transfer is very high.. stores pay a little money to buy or deposit cash.. as do they pay a fee for credit card or debet transactions.. and if I transfer money from 1 bank to another by direct wire.. the recieving bank will charge a small fee too.
this fee is however tiny.. usually less than a cent.
**however the cost to make a crypto transfer is usually a couple whole euro's... making it utterly unsuited for most everyday transactions even if it could handle the speed and volume.
--- finally the volatility...
**for a currency one wants stability... if it is the one thing that everyone trades their thing in.. we must all know that that one thing tomorrow will mostly have the same value as today...
-> if it apreciates to much... nobody will spend... and the economy will crash.. if it depreciates to much.. nobody will sell... and the economy will crash. Crypto's are not stable.. and because of the way they are set up... unable to adapt the moneysupply to the actual needs of the economy.. they never will be in the current models...

***
leaving only 1 remaning value of crypto : privacy... one can buy and sell illecit goods with it.. launder money away... hide money from the taxman.. etc..
-this is the only real value of crypto... as it was always a problem for criminals not only to smuggle the drugs out.. but the cash in...
**still this only works because the criminals can convert the crypto back to cash.. since the crypto itself has no intrensic value.. the addict or crook buying crypto here with cash... buying weapons, human trafficing, drugs etc online.. have them posted to him annonimsly.. while the criminals on their end sell their crypto for cash..
-> the problem in that line.. is that the cash still by some method have to be carried from the place the crypto is bought to were it is sold...
-that is a weakness you can bet goverments close down eventually as they not want this kind of criminal laundering to happen.


-----
So in essense Crypto has thus in it's current shapes ZERO real world value.. though it has limited value as an experiment.. to invent a better way to do crypto that overcomes all these issues.. but I doubt all those "investors" are idealistst willing to donate money for the research of this technology.. or anarchists willing to donate money to the laundering sceme of criminals..
-> but the end will be the same... at one moment the tulip trade will crash.. and the last one to hold the hot potato.. will burn his fingers...


------
NFT's have even LESS a value...


**the art trade in itself even in the real world is massively bloated and a tulip trade with much less value in the real world economy than goes around in it.
->
so if normal art trade is a tulip trade than NFT's even if they truelly were about digital art are too.
But they are not... they take the worst of crypto.. and the worst of art trade and combine it.
-> owning a NFT will not entitle you to demand copyright money from anyone using the picture of it, nor will the actual immage of the NFT acctually matter.. that may be reused for other NFT's many times... nor will it matter who created it.. the barcode on the product.. is whats actually traded.. not the product itself.
->
so what you basicly buy.. is the same what you buy when you buy some crypto... with the difference you don't buy 0.0000001 bitcoin.. but 0.00000001 picasso.
different name.. same thing.. the fact the use a pretty picture instead of a $ does not chance the nature of the thing. trading in shells and pearls.. or in coins with numbers... same effect.

**and with NFT's having even WORSE practical real world use as a currency...
so even MORE a tulip trade...

i don't really care about them

https://www.youtube.com/watch?v=9gAVaTKcpMY

Wtf is an NFT?

Digital version of a large part of the art industry, just a way for rich peeps to legally launder money.

Originally posted by ṼṏẌṏḭḊ:

Wtf is an NFT?

non fungible thingy

When I read NFT, I always think of NTFS vs FAT32.

It's so stupid I thought it was a practical joke when I first heard about it.

It isn't even a licensing agreement, you just own the rights to one particular stock photo.

Originally posted by Incarnate:

It's so stupid I thought it was a practical joke when I first heard about it.

It isn't even a licensing agreement, you just own the rights to one particular stock photo.

Not even the photo is the value here, its the program.

I think it's for the "traders" who needs to buy and sell "rare pixels".

Rare game skins -> rare trade hubs -> traders -> game shut down -> trade something else.

Ultimately a scam bubble because there won't be a collector who wish to buy the most expensive "rare pixel" in the end. The final buyer to pay for all the traders does not exist.

It's a short lived facade. Considering where the market is headed, once the government cracks down on BTC, all this metaverse, NFT nonsense will become obsolete.

Not familiar with these. What's the point of those again?

They sound like quite a scam.