It's not actually an acronym for "Hold On for Dear Life," that's just a coincidence. Somebody, a long time ago, misspelled the word "hold," and it stuck. It is now the mantra of Bitcoin supporters, and is part of their efforts to revolutionize the way people exchange value, i.e. they envision a future in which Bitcoin is the world's base currency. This is desirable in their eyes because Bitcoin cannot be confiscated by government without force, it cannot be inflated by central banks, and it would allow third world citizens without government IDs (a population that is in the billions) to benefit from the advantages of computerized, modern finance.
I have no real idea about bitcoin. I recall someone mentioning it to me maybe 5-6 years ago. I asked the question, what backs them "value" up? He had no idea other than others want them. Someone enlighten me. Doesn't any "currency" have to have something of value to back it up? Or can we decide the TUSCLcoin has value and start acquiring them?
Suppose everyone or even most wish to unload bitcoins and no one wants them? isn't their value then ZERO?
I don't understand physics. I recall someone told me about the subject maybe 5-6 years ago. I asked the question, "In what medium does light travel that gives it amplitude?" He had no idea other than people see it. Someone show me this light. Doesn't any "wave" have to have a medium to give it amplitude? Or can we decide to make our own light and look at it?
Suppose everyone or even most stopped looking at our light and it is not seen. Isn't its amplitude then zero?
"Nobody really doubts that the presence or absence of the cat is something independent of the act of observation." - Einstein
@Random, I wasn’t merely quoting Einstein to sound profound. I provided an analogy which mirrored the previous comment. The analogy gets at the heart of the issue at hand when it comes to the topic of Bitcoin’s value, which is that of the relationship between subjective observers and the objective reality in which they find themselves. About a century ago, physicists tried to uncover this relationship, and the thought experiment known as Schrödinger’s cat is quite famous for how well it sums up the problems they had. The quote I provided by Einstein is part of his correspondence with other physicists regarding the thought experiment.
Shall I explain further?
Clubber sure if nobody wants btc then its value is zero. But the valuation of it in the market is fuction as a means of storing and transporting value any where in the world in a highly secure low cost way. Intrinsicly it is a tool and not just a static object like a $ bill.
I think you are thinking about using a standard based monetary system (like gold). You could give your usd to the US government and theoretically they can give you exactly that ammount of gold out of the vault. i.e. it is backed by gold. That standard faded and ultimately went bye bye in exchange for a fiat based monetary system. Our US dollars are no longer backed by any commodity and are valued based on faith and credit of the economy and government. Supply and demand for $ sets its value. It can be zero if nobody wants it or trusts it. No different at the end of the day.
btc started in 2008 when faith in the fiat system faded considerably. It will be interesting to see where this goes...
"Shall I explain further?"
_____________
No, please don't because the comparison is cringe-worthy, goofy, and pretentious. As I said, quoting Einstien is a favorite for lay people trying to hide behind an mysterious aura of intelligence.
Bitcoin will probably end badly but nobody knows for sure. Topics like whether special relativity and the uncertainty principle have been proven beyond any reasonable doubt.
"As I said, quoting Einstien is a favorite for lay people trying to hide behind an mysterious aura of intelligence."
- Dude... you know I'm a physicist, right? lol. I'm just trying to explain my comment because you didn't understand it. The search for some intrinsic property in a currency which gives it value is akin to the search for the medium in which light travels insofar as both searches are futile--there is no medium, and there is no intrinsic property in a currency which gives it value. We, as subjective individuals, ascribe value to the external world in our own unique way, just like our perceptions of reality are all unique. Some people will pay a lot of US dollars for a baseball card, and other people wouldn't pay a single US dollar. Is that to say that one is a fool, and the other isn't? Of course not! People like what they like, and people value what they value. So, is one person a fool because he doesn't see the value of Bitcoin, where others do? Of course not! They are neither fools, just like a man calls a blue thing violet because he is wearing red tinted shades, and another man calls a blue thing green because he is wearing yellow tinted shades. The men's basic perceptions are the same, and they are simply seeing the world through a different lens.
@FTS Maybe you could explain the the intrinsic value of money to Clubber like this, @Clubber the night you went to Tootsie"s when I was there someone I dont remember said there was an Asian girl there that night, you wanted to find her, if you were the the only dude into Asians you would have found her in a few moments, as it turned out you didn't find her till much later you would have spent much more if you had found her earlier but, if you tied her up for hours she probably would have made less. That my friend is how the intrinsic value of money works, if nobody wants it it isn't worth anything, if many want it the price keeps getting bumped higher untill everyone has what they want.
When bitcoin and the cryptocurrency is all crashing, you just say HODL. If you fomo and cash out as everything is falling, you lose money big time. If you wait for it to recover, you make more money. You can also sell at the high point, and buy on the dip, if you're a day trader.
17 comments