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RE: What is the use of cryptocurrencies?

in #cryptocurrencieslast year (edited)

Great post although i dont agree on a lot of points and think you omitted quite a few things regarding the inner working of the market.
Id just say that i definitely dont think Bitcoin is a good store of value. I find it to be quite the opposite. The volatility side of Bitcoin should be enough (even though theres much more) to disprove that statement and even if you take the macro view you cannot claim with any level of certainty that Bitcoin past performance can in any way be taken as a pointer of future performance.

There are a huge number of things that can happen.
The halvening for example could kill of mining pools in the rest of the world with only Chinese mining pools remaining (already make up something like 60% of hash power) that use cheap electricity. That could create a perception that the coin is being centralized under the watchful eye of the communist regime.
The price of the token could go up and as we have seen, the higher the price the worse bitcoin performs. Your point about tech remaining the older it is.. Well the VCR got killed off by CDs and CDs by USBs, etc. Even though the analogy isnt water proof the base characteristics of Bitcoin, if done better and surrounded by enough hype and external money, could definitely raise up a competitor that could usurp its spot.
A new player that could enter the market that could tackle the adoption problem. I mean Steem tackles the adoption problem better then any other token out there.

The state of the market right now shows that the price movements are generally affected by whale manipulation and hype. That kind of environment isnt attractive to many people.
As time goes by that will be obvious to more and more people.
Its not only that Bitcoin is a terrible payment option or that due to volatility and manipulations its a terrible store of value. Its that as time goes on and the existence of cryptocurrencies becomes common known, the fact the space is controlled by a few whales that got rich off the backs of stupid inexperienced investors and because the space is so obviously corrupt, manipulated and riddled with schemes, the realization will hit that even though the underlying technology does revolve around decentralization, the power to make or break a token, the power to move the market via extramarket activities is in the hands of the very few.
And thus, so are your funds.

While you have the government on one side that has control over your resources, here you just replaced them with corrupt centralized exchanges and whales.
This is a very dangerous space to be in and i try and discourage anyone thinking to use it as a store of value.

The only cryptocurrency that its worth getting into right now is STEEM. Nothing else. The low risk of entry into the space it provides has no rival and on that point alone it puts itself above all else. From there you can build your knowledge and understanding.
Otherwise you risk ending up in the meat grinder like so many have.

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Id just say that i definitely dont think Bitcoin is a good store of value. I find it to be quite the opposite.

Based purely on the size of the BTC market it is a stronger token than STEEM. There is also the pure number of miners compared to STEEM protecting the network. Its an order of magnitude difference.

The only cryptocurrency that its worth getting into right now is STEEM.

I disagree with this whole heartedly. If I was going to suggest an alternative token (and blockchain) it would be Horizen ($ZEN). I think this token and application is farther ahead and the applications that are coming will be more useful in an anti-fragile, long term distributed, holder of value than STEEM.

However, its the black/white of your arguement that I really take exception to. The world is grey, and while I see a lot of potential with STEEM there is a LONG way to go before it can be a reliable store of value or the dApps get mass adoption.

I read a post on this blockchain today saying how #appics is better than instagram! That's ludicrous. It may have a lot of potential compared to Instagram, but I can't even download it from the AppStore.

We need to be realistic as to where we are in the life of STEEM and stop thinking that we are farther along. There are a lot of good here and that is why I've moved some of my BTC into SP and am working to curate more of the type of content that I want to see.

And speaking of whales

The state of the market right now shows that the price movements are generally affected by whale manipulation and hype.

There are plenty of whales on this platform that would rather discourage minnows from posting by downvoting without actually producing content themselves; and it is these people that can move the value of STEEM up or down as they wish.

Impressive comment @noloafing

Hey, thanks for your comment! It does help to balance the argument a little. Appreciate that!

Amazing comment @lordbutterfly