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pixel_of_moral_decay t1_iy5cat1 wrote

Reply to comment by discipleofsteel in BlockFi (JC registered company) Bankrupt by driftingwood2018

Banking is a record of economic contribution.

Bitcoin is a record. Nothing more.

Anyone can create a database and assign themselves a million dollars. That’s a record.

That difference isn’t nuanced. It’s everything.

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discipleofsteel t1_iy5dil6 wrote

Thats literally how fractional reserve banking works...

I mean yeah, not "everyone" can do it. But they're still just assigning themselves value. It's all faith and credit. Again I argue the only difference is the centralization.

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pixel_of_moral_decay t1_iy5wmmd wrote

If your argument had even a shred of validity Bitcoin wouldn’t have tanked. Not to mention you wouldn’t need to get other people to invest to keep your money afloat.

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discipleofsteel t1_iy5ziu4 wrote

Bitcoin didn't tank. It experienced a speculative bubble and the bubble popped. How much is Bitcoin worth? It isn't. It has value in it's utility as a medium exchange in the scenarios I mentioned above. Beanie Babies were a fun toy, then a speculative bubble worth a fortune, and then a fun toy again. You'd have to be a gambler or an idiot to risk money you can't afford to lose speculating on the value of anything.

Regardless, the current price of Bitcoin in USD, is entirely irrelevant to any of my arguments.

Of course it's "kept afloat by it's investors". Literally everything is. The USD is backed by faith that the US pays it's debts. Anyone who buys that debt is an investor. If foreign nations stopped buying US debt the US economy would collapse.

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