Re: Insert meme here
Quote
"Fiat money doesn't take anything to produce. The rate of supply of the currency is arbitrarily controlled by someone who is not you."
The same can be said for bitcoin, although the supply of the currency is more tied to the number of GPUs a miner can attatch to a PC.
Which brings us to a fundlemental law of economics
"An asset is only worth what someone else is willing to pay for it"
This applies to anything, shares, gold, FIAT money, bitcoins, dutch tulip bulbs, and graphics cards.
EG I paid 1400 for a new pc with a 3060ti card in it, listing the card on ebay I can easily make 1000-1200 for the card alone, its only worth 400-500.. but someone will be willing to pay 1000 for it as it can mine bitcoins.
Same goes for my house, 200 000 I could get for it, but its physical worth is about 80 000.
The real trick is to cash out at the top of a bubble and not be caught holding an asset when the price collapses (although if bitcoin collapses, that will make the gamers very happy to get cheap GFX cards again.)
PS Bitcoin here represents any of the crypto-currencies.. so dont get your knickers in a twist