The myth that crypto is not producing anything.
Clearing the myth that crypto is not producing anything, hence it leads to the greater fool theory. For some cryptocurrencies such as BTC (non-scalable obsolete technology), they may be right about the greater fool theory. But this may not apply to other cryptocurrencies, here’s why.
In economics, something has value if it has 2 main characteristics; scarcity and utility. The value of cryptocurrencies come from its usability and utility. My shit is scarce like BTC, but just being scarce alone is not enough. It has to be of value to people. And don’t make the mistake of thinking price and value are the same; they are not. In the short term, price is based on speculation but in the long run, price usually aligns with its value.
Usability And Network Effects – Recently, I had been to Tokyo, Australia, Slovenia, and during my trips to these 3 countries, I managed to live off Bitcoin Cash entirely. There wasn’t even a need to touch the local currencies. And unlike BTC, I do not need to pay over $50 in transaction fees every single transaction nor do I need to wait for weeks for the transaction to confirm. Source: https://www.trustnodes.com/2017/12/22/gregory-maxwell-celebrates-high-fees-300000-stuck-transactions
Sure, it’s not the peak period now so the BTC fees had dropped but why do I want to use something that is only at times usable and other times, totally unusable? And this is why greater fool theory applies to BTC but not necessarily other cryptocurrencies. Only great fools will wait weeks for their transaction to clear while paying over $50 fees each transaction.
Here are some other areas where Bitcoin Cash had value in my own personal experience.
Saves Time / Money – Time is money for most people. In fact, I would argue that time is more important than money. Bitcoin Cash has allowed me to pay wages to my employees across the world instantly easily and almost for free. I do not need to waste time queueing up at the bank and filling up forms and get charged expensive bank fees.
Shadow Banking – I no longer need to keep my money in offshore bank accounts. With Bitcoin Cash, I am my own offshore bank account. I saved lots of time/money on hiring lawyers and offshore administrators to manage my offshore money.
Businesses Lacking Banking Relationships – Bitcoin Cash, with its instant transactions at sub-cent fees, has massive value for businesses that are totally shut off from having bank accounts. They are typically from the gambling, adults, drugs industries. With Bitcoin Cash, they can do their business worldwide without restricting themselves to customers from a single country.
Protection From Unstable Economy / Inflation / Hyperinflation – I always find it weird that people are able to accept their fiat losing value 100% of the time, but unable to accept cryptocurrencies that may increase in value over time. Bitcoin Cash, with its limited supply, protects investors from inflation and hyperinflation, which is valuable especially in times of crisis and instability.
Insurance Policy – Why do people buy insurance since it does not produce anything? Because it gives people a piece of mind. Similarly, cryptocurrencies allow me to feel safe in times of crisis because I have the choice to escape anywhere and continue my life with most of my money intact. This is highly valuable to me, knowing the world has became crazier with all the government suppression going on, and all the protests going on around the world.
Great User Experience – I have made over few hundred Bitcoin Cash transactions and it was always mind blowing. It is fast, reliable, instant, cost less than a cent and I never worry about lost funds such as what happens to BTC or Lightning Network users. Source: /r/btc/comments/dm0b4y/warningifyoutrytousethelightningnetwork/
All in all, I am extremely bullish about cryptocurrencies and especially Bitcoin Cash because it has tremendous value and utility. I am here for the long term so I don’t care much about the price right now. Cheaper is better for me because I can get more Bitcoin Cash for the same dollar. In fact, I actually felt bad when my supplier’s check came in late and I had to get BCH at $270 instead of $210 a couple of weeks before.
The low price provides an opportunity for people who missed the early Bitcoin train. And if they missed this train too, they shouldn’t complain in the future. As the Bitcoin Cash halving approaches, having its supply mined per day cut in half, I am even more aggressive in getting my hands on more Bitcoin Cash. I am here for the long term, promoting Bitcoin Cash to as many people as possible, every single day.