Value isn’t defined by monetary significance
I can’t seem to go one day without seeing someone question the value of cryptocurrency, usually by referencing how its “value” has fallen some ridiculous amount. People seem to think that something is only as useful as it is monetary worth suggests. This begs the question, what really defines the value of something; I would argue it’s more than just its monetary magnitude.
In a day and age where economic status dictates where you live, what you wear, and what you represent, it’s important to distinguish monetary value, and utilitarian value. Just because something is cheap and/or expensive doesn’t change the economic utility of the product. Of course, there is some importance to the price of something, but it often doesn’t correlate to the actual value of the product. This principle can be applied to just about anything; including cryptocurrency.
Value is defined as the importance, worth, or usefulness that something possesses. This definition is rather broad, but it illustrates something incredibly important; value defines money, not the other way around. In fact, without a societal structure to support it, “money” is just paper, which is not only boring, it’s useless. It is also important to note that value is subjective. Some people will interpret the value of something without thinking of other peoples opinions or ideals. This is why it is so important to carefully define what you find valuable.
Without a doubt, some people will choose to define value by the currency in which they use. There isn’t an inherent problem with this, but it generally fragments what would be productive discussion. I specifically see people equating the value of Bitcoin and United States Dollars. While this is perfectly acceptable, keep in mind why the dollar is even valuable; because the US government says it is.
The acronyms that the cryptocurrency community employs only add to the chaos of undefined logic. Often these terms are used to explain specific phenomenons in the monetary value of cryptocurrency. Some of them are quite comical, however they all further contribute to the obvious confusion within the community. However, they are largely used in order to stir speculation and excitement within the market. They provide the cryptocurrency community with a sense of exclusivity and knowledge; all revolving around the idea of value.
- FUD: Fear, Uncertainty and Doubt
- FOMO: Fear of Missing Out
- HODL: This basically just means hold; don’t sell, ever
- MOON: Well the moon of course; In reference to the price soaring up
- LAMBO: A Lamborghini; something that you buy when you become rich due to your investments
Most of these aren’t even acronyms, but I feel they were important to include to illustrate the obscenity of the cryptocurrency community. In fact, some of them seem like a joke, but I only included them because they are literally used on a daily basis among the cryptocurrency community. This repellent rhetoric perfectly demonstrates how the cryptocurrency congregation has kicked the complexity of the term value to the curb. Turns out clarity isn’t the best way to stir hype.
This mindless speech is dangerous in a couple of ways:
- It treats cryptocurrency as an investment instead of a technology
- It assumes that everyone sees cryptocurrency as a store of value
When value isn’t defined and market hype is high, we see the birth of the Cryptocurrency Market Cycle.
This monstrosity occurs when people misplace there intelligence, and focus on value as a monetary term. Once people are convinced that monetary gain is the only reason cryptocurrency exists a completely speculative and unstable market is created, which often has wider implications.
Some cryptocurrencies like Bitcoin are developed with the mission of being a global currency; to define monetization. However, each cryptocurrency is responsible for denoting its own sense of value. Some cryptocurrencies are only as valuable as the applications that run on their blockchain networks (There is a lot more too this, but I’m not gonna explain it).
Without a clear definition of value, it is nearly impossible to grasp how valuable something actually is. Value is subjective. Tying the idea of value to some kind of fiscal system is doing a huge disservice to anyone trying to educate them self on any given topic. It is crucial to understand that value isn’t money, but that money can be valuable.
