I think that it would be hard to come up with a universal value for anything, given the variance in circumstances we are all subject to. The question “Is it worth it?” is a personal one to each individual, and in fact can be deeply personal and private in some circumstances, depending on the worth/value of the object being evaluated. Thus, the question of modelling value would lead down the path of modelling people and their preferences/desires.
With regards to the value of cryptocurrency, I view the primarily value of it to me as a hedge. I trade centralized regulation for price volatility. Cryptocurrency is also the only type of currency that I know where knowledge of the private key is necessary and sufficient to transact on the network (to a first-order approximation, at least).
I feel like the question of “what is the value of a cryptocurrency” should be different from “what is the value of cryptocurrency in general?”. and I suspect that the answer will extend to beyond cryptocurrency.
I see. I feel that the value of a cryptocurrency tends to be within/relative to the contexts of other cryptocurrencies (e.g. ETH is BTC but with smart contracts!), and definitely within the space of cryptocurrency in general we can see particular cryptocurrencies offering undeniable value such as DeFi tokens or interoperability projects.
However, what would really be useful is the valuation of a cryptocurrency relative to fields outside of it. I do know that there are many projects that try to bridge that, but unfortunately the cryptocurrency space tends to be in its own bubble and usually seems to produce goods of debatable or unrealized value (e.g. IoT / Supply-Chain tracking / provenance-tracking a-la NFTs).
“what would really be useful is the valuation of a cryptocurrency relative to fields outside of it.” Yes, this is something I want to explore more as part of the value of cryptocurrency in general. I am also aware of these types of projects, at least in the mission statement. But I really don’t know if that is really something they want to do, or it is purely for the sake of attracting more investors.
I think that it would be hard to come up with a universal value for anything, given the variance in circumstances we are all subject to. The question “Is it worth it?” is a personal one to each individual, and in fact can be deeply personal and private in some circumstances, depending on the worth/value of the object being evaluated. Thus, the question of modelling value would lead down the path of modelling people and their preferences/desires.
With regards to the value of cryptocurrency, I view the primarily value of it to me as a hedge. I trade centralized regulation for price volatility. Cryptocurrency is also the only type of currency that I know where knowledge of the private key is necessary and sufficient to transact on the network (to a first-order approximation, at least).
I feel like the question of “what is the value of a cryptocurrency” should be different from “what is the value of cryptocurrency in general?”. and I suspect that the answer will extend to beyond cryptocurrency.
I see. I feel that the value of a cryptocurrency tends to be within/relative to the contexts of other cryptocurrencies (e.g. ETH is BTC but with smart contracts!), and definitely within the space of cryptocurrency in general we can see particular cryptocurrencies offering undeniable value such as DeFi tokens or interoperability projects.
However, what would really be useful is the valuation of a cryptocurrency relative to fields outside of it. I do know that there are many projects that try to bridge that, but unfortunately the cryptocurrency space tends to be in its own bubble and usually seems to produce goods of debatable or unrealized value (e.g. IoT / Supply-Chain tracking / provenance-tracking a-la NFTs).
“what would really be useful is the valuation of a cryptocurrency relative to fields outside of it.” Yes, this is something I want to explore more as part of the value of cryptocurrency in general. I am also aware of these types of projects, at least in the mission statement. But I really don’t know if that is really something they want to do, or it is purely for the sake of attracting more investors.