Fun fact: Cryptocurrencies are not Assets, but Activity Logs

[JamesNZ]

In traditional banking systems you are using bank apps to change the ownership of an asset, with numbers representing its quantity. In the cryptocurrency systems you're updating logs of pyramid-style schemes by changing numbers. There's no asset involved. Thinking that an activity log of a pyramid scheme is an alternative to an asset is craziness of a high order.

You seem to be confused BANKS are the pyramid scheme.

Banks can and frequently do use fractional reserve banking: https://www.investopedia.com/terms/f/fractionalreservebanking.asp
You can't do that with crypto, you can't send or use what you don't have.

If you hate crypto so much, why don't you leave? Or is this the only joy you get while being a troll living in your moms basement.

-Dave

Do you have anything about the topic at hand?

[Aanuoluwatofunmi]

The biggest misconception in the world of cryptocurrencies is that they are assets—specifically, a monetary type of asset. This is a misconception for a simple reason: within cryptocurrency networks or systems, there is no resource that can provide a benefit to cryptocurrency owners. And it is precisely this ability to provide a benefit that defines an asset. Let's look at a few examples of assets to understand this.

I have a little advise for you here, don't hypnotize others with wrong perception, idea or fake theories that doesn't exist at all, why cant a crypto coin like bitcoin be an asset, its better you understand that its a digital currency and also have the ability to serve multipurpose benefits, as such we can found with using it as a digital currency, an investment asset and a profitable one indeed, if you invest and hold and earl from it with time, aren't you profitable with crypto?.

[JamesNZ]

The biggest misconception in the world of cryptocurrencies is that they are assets—specifically, a monetary type of asset. This is a misconception for a simple reason: within cryptocurrency networks or systems, there is no resource that can provide a benefit to cryptocurrency owners. And it is precisely this ability to provide a benefit that defines an asset. Let's look at a few examples of assets to understand this.

I have a little advise for you here, don't hypnotize others with wrong perception, idea or fake theories that doesn't exist at all, why cant a crypto coin like bitcoin be an asset, its better you understand that its a digital currency and also have the ability to serve multipurpose benefits, as such we can found with using it as a digital currency, an investment asset and a profitable one indeed, if you invest and hold and earl from it with time, aren't you profitable with crypto?.

It's the other way around. People are hypnotized with all the lies and misinformation about crypto that are constantly spread through meanstream media and social networks. They are also hypnotized with big payments into the pyramid schemes. What I am doing here is the awakening - I am trying to get people out of hypnosis.

[EarnOnVictor]

I admit that you are constructive as ever and perhaps creative as well but your perspective on cryptocurrency has always been the same and you are wrong. Maybe you do not know the definition of an asset, and I implore you to conduct a common research on it. Your writeup proves a point and you are trying to get some facts to downgrade the "virtuality" of Bitcoin and altcoins but this will not stop the truth that they are assets. Some are now calcified by the US government as Security and Commodity, this can only mean that they derive that from their purpose and utility, therefore they are assets by law.

Again, you call cryptocurrencies a non-asset but they are already in the mainstream of the financial market, many big companies and even countries now have some shares in cryptocurrencies and it is being used daily for deposits, withdrawals, loans and repayment, name it. If you can say cryptocurrency is not an asset, then Fiat is not an asset, which is not true. You may buy a car today and opt to pay in cryptocurrency, if it doesn't have a value, will the deal be possible? Stop downgrading an asset due to the fact that it is virtual, so far people value it and people's liquidity empowers it, it is an asset.

[JamesNZ]

I admit that you are constructive as ever and perhaps creative as well but your perspective on cryptocurrency has always been the same and you are wrong. Maybe you do not know the definition of an asset, and I implore you to conduct a common research on it. Your writeup proves a point and you are trying to get some facts to downgrade the "virtuality" of Bitcoin and altcoins but this will not stop the truth that they are assets. Some are now calcified by the US government as Security and Commodity, this can only mean that they derive that from their purpose and utility, therefore they are assets by law.

Again, you call cryptocurrencies a non-asset but they are already in the mainstream of the financial market, many big companies and even countries now have some shares in cryptocurrencies and it is being used daily for deposits, withdrawals, loans and repayment, name it. If you can say cryptocurrency is not an asset, then Fiat is not an asset, which is not true. You may buy a car today and opt to pay in cryptocurrency, if it doesn't have a value, will the deal be possible? Stop downgrading an asset due to the fact that it is virtual, so far people value it and people's liquidity empowers it, it is an asset.

I have a simple advice: read the the opening post again and try to actually address the argument presented in it. You're literally ignoring everything that is said and just make statements opposite to the conclusions of the argument. A law, for instance, is just a declaration made by the politicians. That declaration cannot change the fact that within cryptocurrency systems there are no resources that can provide benefit to cryptocurrency owners. If the politicians declared cryptocurrencies an asset that just means politicians are stupid. But I know that we live in times where people worship the authorities and think that everything declared by them is automatically a fact. So, you are free to believe what the authorities tell you, but that's not an argument.

[Fivestar4everMVP]

... You've certainly given me food for thought. The way you've described it, one could argue that cryptocurrency lacks the fundamental trait that defines an asset. There's no tangible use or financial benefit to it, besides the abstract belief that its value will rise in the future.

Yet it still works, somehow. People still... put value into it.

Lolz, don't read and believe things that makes makes no sense, op is a well known bitcoin and cryptocurrency hater, if you doubt, go through his post history and find out, I've come across a couple of this posts on this board and they've all been centered around discrediting bitcoin and cryptocurrencies at large from what they are and represent in our current society.
Many still cant just comprehend the fact that things are changing and so is money as well, they wish things to remain as they have always been in the past but unfortunately, it's not In their power or hands to decide.

You have to realize that it is people that gives something value, whatever the majority people see as valuable become valuable, and what ever value they attach to it, it become, the paper you and I spend as money today, who gave it value? It's the people.
If majority of the worlds population decide tomorrow that paper money is no longer valuable, and we all turn our backs to it, even the central banks can't do anything other than try to convince the people.

[JamesNZ]

... You've certainly given me food for thought. The way you've described it, one could argue that cryptocurrency lacks the fundamental trait that defines an asset. There's no tangible use or financial benefit to it, besides the abstract belief that its value will rise in the future.

Yet it still works, somehow. People still... put value into it.

Lolz, don't read and believe things that makes makes no sense, op is a well known bitcoin and cryptocurrency hater, if you doubt, go through his post history and find out, I've come across a couple of this posts on this board and they've all been centered around discrediting bitcoin and cryptocurrencies at large from what they are and represent in our current society.
Many still cant just comprehend the fact that things are changing and so is money as well, they wish things to remain as they have always been in the past but unfortunately, it's not In their power or hands to decide.

You have to realize that it is people that gives something value, whatever the majority people see as valuable become valuable, and what ever value they attach to it, it become, the paper you and I spend as money today, who gave it value? It's the people.
If majority of the worlds population decide tomorrow that paper money is no longer valuable, and we all turn our backs to it, even the central banks can't do anything other than try to convince the people.

You repeat the same nonsense I already addressed.

Value

It seems you have problems understanding what value is. Value is that benefit described in the OP - it's the expected benefit that a resource can provide in the future to owners. In stocks that resource is capital and profits of a company. So if a company has a positive equity and produce profits its stock is valuable. We can argue how big that value is but that doesn't change the fact of its existence.

With cryptocurrencies however, no resource exists that can provide benefit to cryptocurrency owners. So there's no value that you can determine or talk about. Only a log exists that crypo owners can update via wallet applications. And that log can be downloaded for free by anyone.

Hate

...
As you can see it's not about hating Bitcoin, as you crypo people like to say. Why would anyone hate a log?  Or the activity of updating it? It is lies what people hate.

[bitcoindusts]

I do not know how to put it, but if we remove anything that happen behind those activity logs, then all things is an activity log.  Same goes with the history I guess, the medical records, the bank transaction records, the employee records, and everything that people do and put on records... they are all just an activity log, that is as I stated, if we remove the thing that happened behind that activity log.

[PrivacyG]

I simply can't understand what's wrong with you crypto people.

Why are you still here then?  Maybe we are all mentally ill, who knows.  Just let us be.  This seems to be like yet somebody else who has a problem with us and it is funny considering we do not have a problem with the people using Fiat but with Fiat itself.

It is always funny to me.  We have a problem with the traditional Banking and Fiat system.  People like OP who hate Cryptocurrencies typically hate us more than they hate Cryptocurrencies.

Anyway.  This is a BITCOIN Forum.  Of course your chances of making us believe Bitcoin is a 'fantasy world' are zero.  Try going to the Science sub forum on Reddit and convince them that Science is a myth.  You may convince those who know nothing about Science, but not them who do research.  Good luck.

[JamesNZ]

I do not know how to put it, but if we remove anything that happen behind those activity logs, then all things is an activity log.  Same goes with the history I guess, the medical records, the bank transaction records, the employee records, and everything that people do and put on records... they are all just an activity log, that is as I stated, if we remove the thing that happened behind that activity log.

There's a difference between a transaction record and an activity log. In the first you have an asset that is being transferred between people and you write down quantities of that asset. In the second you just write down events that occur. In crypto, these events are changing numbers with wallet applications.

[JamesNZ]

I simply can't understand what's wrong with you crypto people.

Why are you still here then?  Maybe we are all mentally ill, who knows.  Just let us be.  This seems to be like yet somebody else who has a problem with us and it is funny considering we do not have a problem with the people using Fiat but with Fiat itself.

It is always funny to me.  We have a problem with the traditional Banking and Fiat system.  People like OP who hate Cryptocurrencies typically hate us more than they hate Cryptocurrencies.

Anyway.  This is a BITCOIN Forum.  Of course your chances of making us believe Bitcoin is a 'fantasy world' are zero.  Try going to the Science sub forum on Reddit and convince them that Science is a myth.  You may convince those who know nothing about Science, but not them who do research.  Good luck.

Bitcoin is not a fantasy. It is a log and a set of protocols that connect computers to store that log.

What is a fantasy is the belief that you are transferring a valuable and scarce asset when you update that log via wallet apps. Assets are what have value and scarcity. If there is no asset involved, there is nothing to be valuable or scarce.

That which you people call "Bitcoin scarcity" is nothing but a simple mathematical function that sets the maximum sum of numbers associated with digital addresses to 21 million.

[Alpha Marine]

I'm more concerned about how you say fiat currencies are assets, but bitcoin is not. Then you went ahead to say the only thing that makes fiat an asset is through debt. Meaning fiat won't be an asset if you don't give out a loan and earn a profit from it. Did you think it through?
There was a time when my local currency was gaining on the dollar and I speculated that based on future events which are to come, the dollar would gain massively against my local currency. I bought a lot of dollars at a cheaper rate and held for a long time (close to a year) and just like I predicted the dollar gained massively against my local currency and I sold the dollar and made a profit out of it. While I held on to that dollar, it was an asset. I didn't need to give out a loan and receive interest for it to be an asset. I made a profit simply by holding on to it and selling it at a price much higher than I bought it. This is also what makes fiat currency assets.

It's the same thing with Bitcoin, You can decide to hold it for a long time and sell it at a profit. How can you say something that you can buy at $100 and sell at $200 in a year is not an asset?
If you really believe that then you're saying shares are not assets because if you don't sell your share at a profit you won't make any money from it.

[nutildah]

I'm more concerned about how you say fiat currencies are assets, but bitcoin is not. Then you went ahead to say the only thing that makes fiat an asset is through debt. Meaning fiat won't be an asset if you don't give out a loan and earn a profit from it. Did you think it through?

Don't bother, this person is immune to any sort of logic & you're wasting time trying to appeal to their sensibilities. They are on a one-man mission to fud bitcoin until they get banned again. They don't even have any sort of rebuttal, they just continue to repeat their initial claims ad nauseum.

[icalical]

The idea that cryptocurrencies, like Bitcoin, don’t offer tangible benefits like stocks or real estate misses an important point: value in any system is subjective and driven by what people are willing to exchange. Cryptocurrencies do offer a benefit, it’s just different. It gives way to the possibility of a financial system that is decentralized and within which individuals can transact without having to involve banks or governments. Bitcoin has already seen use in countries with unstable fiat currencies or high levels of inflation as a store of value, much like gold.

The argumentation about blockchain being no more than a record log and not an asset altogether, presumes that none of the conventional assets are very much derivatives of trust and mutual agreement. When one thinks of a dollar bill, its value is no longer pegged to a measure of gold but rather to the collective agreement in belief regarding its purchasing power. But again, it would be the case of Bitcoin deriving value from people having agreed on its use for transactional exchanges, which indeed is very much in practice across the globe. Besides, Bitcoin has a fixed supply and is completely decentralized, making it more resistant to inflation than any fiat currencies, which central banks can print indefinitely.

Comparison to pyramid schemes seems enticing, but it doesn't fit. In a pyramid scheme, it is essential to have newly joining participants for the sustainability of the scheme. That is not how Bitcoin works, given it doesn't rely on new buyers at all times. Its open network accommodate participation from anyone, and its operating rules are fixed instead of recruitment drives or promised returns.

[Zoomic]

In conclusion, since cryptocurrencies are often presented to the public in economic terms, their owners believe they possess a monetary type of asset and use it to make transactions. However, since the asset with which transactions would be made does not exist, what they actually possess is the ability to update the logs of modern pyramid schemes. In every pyramid scheme, participants give someone their asset, and in return do not receive another type of asset, but a promise, a receipt, a confirmation, or some other form of record — which is the case with cryptocurrencies.

If you have an open mind towards cryptocurrencies, you will better appreciate it as an asset. First, an asset is anything of value that is also capable of generating more returns. Most cryptocurrencies (like Bitcoin) fit perfectly into this definition above. People are acquiring cryptocurrencies because it has the potential of generating more revenue/returns just like every other assets. Cryptocurrencies can be measured in monetary terms, it is tradable and ownership of it can be transferred from one person to the other just as you rightly stated.  

Again, assets are subject to appreciation and depreciation and cryptocurrencies have these features to be qualified as assets. So if after comparing these characteristics of assets with cryptocurrencies and you still think cryptocurrencies are not qualified to be referred to as assets, you should then use it the way you feel it should be used or you ignore it totally.