Why is money made worth more than cash today?
Why is money made worth more than cash today?
Just think about this link I found today: a story about tulips that blew up like crazy. It's the Dutch one, remember? The ones with the weird shapes and prices going way too high. That happened in 1970s or so, right? And now it reminds me of how things can get out of hand fast if you don't watch out.
I have started thinking about this too. Bitcoin isn't built from real stuff like gold or silver, and it doesn't come from the government either. So, when I looked at it before, I compared it to stocks. But honestly, that comparison is wrong now because I've thought more deeply.
Stocks mean owning part of a company worth something. Crypto feels like a scam where early birds get rich but lose it all if they don't sell fast enough before everything crashes. Money printed by countries isn't really backed by gold anymore, though it still needs to be accepted for law and deals. Since making crypto costs so much power that I think the government will stop using it for legal stuff one day...
Stocks rely on the company behind them. Bitcoin is different; it feels more like a collectible item you get in sports memorabilia stores or auctions. It's nothing special by itself—it's just a piece of paper with an image on it—but everyone wants it because people think there are only a few left and they're very rare. Some art and baseball cards can have history and cool value, but digital money is just random numbers that folks chase for their own reasons.
bitcoin has value because it can actually be used. it is traded like government paper money, but it isn't regulated so it lacks "official" status as real cash. however, people using it makes it a currency in the same sense of the word. its appeal comes from not being watched over by anyone or having rules about what to do with your money. unlike regular cash tracked everywhere through banks and easy for governments to catch you on big transactions, bitcoin lets you turn your money into a digital bag on a thumb drive and travel freely without paying customs, taxes, or getting stopped at checkpoints. when you arrive somewhere else, you just sell that digital coin for local bills and keep going with your day. yes, it is used for bad stuff too because it is hard to follow where the coins go. but anyone can give something value to someone even if they don't think so at all. some people buy things like cars or houses for millions of dollars while others see them as useless. bitcoin isn't different from that. sometimes you mine a bit yourself and sell it when you get new ones, just like any other thing. or you can buy it on an exchange site to flip it later. everything goes up and down in price so sometimes you lose money and sometimes you make it. people have been saying this will die out for years but the value is still going up. once it was almost nothing worth back when we used to give them away for silly questions, then suddenly people were buying a few coins for just one dollar or even less. at some point I had about 3000 of them and laughed so hard that i kept selling them on the way home because everyone else stopped paying attention to the price. man do i wish i had kept holding onto all those ones!!! lol
Thanks guys for your advice and helping me make sense of this. It's really tough to pick the one right answer, but I'll still try. Actually, they all sound like good answers. But it feels to me like it might be a fake scheme about making money fast. Like get in, get rich, then get out.
The real way to get rich fast is when someone makes a new type of digital money. They create it out of thin air, give themselves a big chunk to start with and wait until its value goes up before selling. Those people are really taking advantage of the system. We might not like it, but the folks who put a lot of cash into mining farms are actually putting in the real effort to keep the system running. It isn't cheap to buy hundreds of graphics cards (GPUs) and all that equipment needed to run a farm. They aren't really making money from nothing like some people seem to think. Sure, they make profit, but there is a lot of cost involved with operating the farm that has to be paid out first.
I figured out this thing recently. Look at that picture, it's all over the place again! Yes, it costs a lot of money, and I still don't see why getting so little is worth spending so much time and effort on. You can make double-digit gains in just one day by playing with options. 🤔 Even if someone makes $1 million from work, that doesn't make any sense to me. I checked the math and someone making only 5% on a million dollars could easily pay for their own rent and car payments for years to come--why would millionaires actually keep working? I know I'm not going to do it!! LOL!
They aren't getting wealthy just because they say "that's enough." That is actually why they are still working hard.
why would that be a good deal? You get more out than you spend. It's mostly just not true right now. I think you're pretending you don't care about it when you see others who clearly do want to work hard on it. You can't say no without liking the job, but you still have to put in the effort if it's worth doing. The point of any big business is to make a profit from it and mass-scale mining brings plenty of money that makes sense at this level. We aren't talking about $20 a month here; we're talking about thousands per month. A millionaire usually works hard because they are already making millions in other ways, not just one thing. Those people who don't like sitting still always look for another way to earn. One common truth is that rich people get their money from many places, not just one job. Even if you started with a good job, you took the extra cash and used it to build more wealth over time. Five percent sounds pretty good in theory, but no basic bank account currently pays that kind of interest right now. You can invest it and make some returns, but then that is still just "working" again because investing takes time, effort, and a lot of success. It's not always easy, but when you look at the full picture, you have to consider other angles besides the one you're focusing on. No one gets rich for free; something has to go in whether it's your time or someone else's time, just as money is needed to create profit. In the end, there is no gain without a little effort.