587
From millions of dollars to under a grand: The dramatic fall of the NFT (english.elpais.com)
submitted 7 months ago by to c/technology@lemmy.world
225 comments fedilink hide all child comments
you are viewing a single comment's thread
view the rest of the comments
[–] 5 points 7 months ago (17 children)

Having a currency not backed by a government or different currency is actually something the world could benefit from. Iranian currency was backed by USD, the US caused a shortage of USD there, and their currency value dropped to under 3% of it's former value. 90 Million people.

That said, I think most of us have only ever used crypto to buy drugs off the internet.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 17 child comments
    •
  • [–] 3 points 7 months ago (15 children)

    Yeah, but a currency practically needs a military and an economy to back it.

    Who is going to stop me from fucking with the bitcoin supply if I own the US economy?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 15 child comments
    •
  • [–] 3 points 7 months ago (13 children)

    That's the point of crypto - unless you can alter 51% of the blockchain, you can't.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 13 child comments
    •
  • [–] 1 point 6 months ago (12 children)

    You misunderstand, if I own the GDP of a world power, what's preventing me from buying a ton of Bitcoin and fucking with the supply that way?

    Crypto nowadays looks like a pump and dump free for all.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 12 child comments
    •
  • [–] 1 point 6 months ago (11 children)

    How is buying the asset fucking with the supply?

    If you mean hoarding it, that's pretty much all Bitcoin is good for.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 11 child comments
    •
  • [–] 1 point 6 months ago (10 children)

    The supply of an asset is the volume of that asset available for purchase.

    If I buy all of that, supply becomes zero.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 10 child comments
    •
  • [–] 1 point 6 months ago (9 children)

    The price goes up as you buy it.

    You could attempt to corner the market, but in doing so, you're also going to be massively enriching the current holders.

    What point would taking the entire supply do - especially since you can easily just start another blockchain?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 9 child comments
    •
  • [–] 1 point 6 months ago (6 children)

    You buy enough to raise the price, announce that you're buying it, schmucks try to get in on the wave, you dump while tweeting diamond hands.

    Repeat.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 6 child comments
    •
  • [–] 1 point 6 months ago (5 children)

    Again, why?

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 5 child comments
    •
  • [–] 1 point 6 months ago (4 children)

    To make money

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 4 child comments
    •
  • [–] 1 point 6 months ago (3 children)

    The government you're talking about can print money at will.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 3 child comments
    •
  • [–] 1 point 6 months ago (2 children)

    But that increases the money supply. This way they can take money from other people. For example Russia can get USD without printing and inflating RUB.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 2 child comments
    •
  • [–] 1 point 6 months ago (1 child)

    That's just FOREX with extra steps?

    If Russia controls the entire supply of Bitcoin (which is what you're saying) then why would anyone with USD want to buy it? At that point, being owned by Russia entirely, it's just a Russian currency.

    The whole supposed attraction of Bitcoin is that it's not a government currency, and the supply isn't controlled by a central bank. Ethereum has additional uses to that, but that's still one of the prime factors as well.

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 1 point 6 months ago

    Not the entire supply, just enough to affect prices. Basically the stock market but without even the appearance of it not being manipulated to hell.

    And it's not Russia, or not just them, anyone with enough money to play can fuck people with sub-8 figure net worths over.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 0 points 6 months ago (1 child)

    @mattyroses @HK65 starting another blcokchain is not as easy as copy the blockchain unless you convince the majority of people that your fork is better than the previous one

  • permalink
  • fedilink
  • source
  • parent
  • hideshow 1 child comment
    •
  • [–] 1 point 6 months ago

    Sure, there's a large network advantage.

    But here you're talking about a hypothetical where, for some reason, a major government has bought up all blockchain tokens and won't release them. So nobody's on the original one anyways.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 2 points 6 months ago

    Yeah, it also needs to derive its value from somewhere. Any stable nation's fiat derives its value from the fact that the government is believed trustworthy in matters of printing money and that in order to deal with that government you have to use that currency. An Australian could do all their financial life in etherium assuming everyone takes and offers it, right up until tax time where they have to convert a lot of ETH values into AUD, then trade some ETH for AUD in order to pay taxes. And if they receive any money from their government you bet your ass they aren't being given ETH. If they trust the Australian government even a little they're probably not jumping through those hoops.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 1 point 6 months ago

    To preface: I'm not a gold nut and I believe that it's generally wiser for stable developed nations to use fiat currency to enable them to operate in a generally Keynesian approach with controlled inflation.

    That said while I agree it's unwise for nations unable to do that themselves to back their currency with a stable fiat currency from a different country, I don't think crypto is the solution. Coinage is. And I'm talking old school coinage where the government isn't backing it with metals, they're making it out of them. Probably something like silver.

    A backed currency is because a government can't be trusted not to overinflate. If you want to bypass trust, the answer isn't another currency in which all value is theoretical, it's currency in which the value is in your hand and verifiable, with the government acting as the one setting units, assuring proper valuation, punishing devaluation, and publishing means for institutions and people to confirm valuation, such as physical properties, alloy percentages, and the easiest tests.

  • permalink
  • fedilink
  • source
  • parent