03-12-2022, 10:46 PM
How can people root for crypto’s valuation exploding AND wanting for it to be a me
<!-- SC_OFF --><div class="md"><p>I have a very hard time reconciliating those two objectives:</p> <p>1/ rooting for crypto as an investment that can buy you financial independence through fast paced growth. </p> <p>2/ rooting for crypto as a form of payment used in everyday life. </p> <p>I understand that the intended purpose of crypto is closer to 2/, but unless it finds ways to firmly stabilize its value, I don’t think it can ever really succeed. </p> <p>1/ implies taxable events, holding, and risk. Using my crypto to pay for something leads me to tax exposure, potentially liquidating assets at the wrong time, and reducing potential future gains in the good times. </p> <p>There is a reason we don’t pay for everyday things in stocks. We may reward them in shares (eg RSUs), but nobody treats stocks as a method of payment because it belongs in the investment assets class.</p> <p>From this POV, how can anyone say they want what behaves like an investment asset with limited supply to serve as a currency? Shouldn’t the valuation (and supply) of each token aim to be a lot more stable than what most projects offer?</p> <p>Edit: some people are pointing out the existence of stable coins - I know, and that’s kind of the point. I’m puzzled by the constant celebration of non stablecoins being accepted as payment. I think paying for your latte with ETH is what makes zero sense (unless you’re an absolutist).</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/shannister"> /u/shannister </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tcc721/how_can_people_root_for_cryptos_valuation/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tcc721/how_can_people_root_for_cryptos_valuation/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I have a very hard time reconciliating those two objectives:</p> <p>1/ rooting for crypto as an investment that can buy you financial independence through fast paced growth. </p> <p>2/ rooting for crypto as a form of payment used in everyday life. </p> <p>I understand that the intended purpose of crypto is closer to 2/, but unless it finds ways to firmly stabilize its value, I don’t think it can ever really succeed. </p> <p>1/ implies taxable events, holding, and risk. Using my crypto to pay for something leads me to tax exposure, potentially liquidating assets at the wrong time, and reducing potential future gains in the good times. </p> <p>There is a reason we don’t pay for everyday things in stocks. We may reward them in shares (eg RSUs), but nobody treats stocks as a method of payment because it belongs in the investment assets class.</p> <p>From this POV, how can anyone say they want what behaves like an investment asset with limited supply to serve as a currency? Shouldn’t the valuation (and supply) of each token aim to be a lot more stable than what most projects offer?</p> <p>Edit: some people are pointing out the existence of stable coins - I know, and that’s kind of the point. I’m puzzled by the constant celebration of non stablecoins being accepted as payment. I think paying for your latte with ETH is what makes zero sense (unless you’re an absolutist).</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/shannister"> /u/shannister </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tcc721/how_can_people_root_for_cryptos_valuation/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tcc721/how_can_people_root_for_cryptos_valuation/">[comments]</a></span>Kind Regards R