Q: Do Cryptocurrencies have tangible value?
A: No, but Metacurrencies do
A common question which arises with cryptocurrencies is the question of whether or not they have any real, tangible, intrinsic value.
The short answer is “no” of course; they are merely payment utilities. The longer answer however is more accurate: not yet.
By jumping the gun, many investment experts have misunderstood the potential for more technologically-advanced extrapolations of the utility and value equations inherent in any economic scenario. Take the recent statement regarding cryptocurrencies that Warren Buffet made:
“There’s two kinds of items that people buy,” he said, “and [in both cases] think they’re investing: one really is investing and the other isn’t. If you buy something like a farm, an apartment house, or an interest in a business, you can do that on a private basis. And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
In the above quote, Warren Buffet is arguing that cryptocurrencies make lousy investments since there is no economic production that underlies the gains in the asset prices, merely a limited supply of assets being purchased by a large share of people. This results in those investors targeting over 100% economic efficiency in production.
However, what if the product that is produced is not anything tangible or useable like a car or a house. What if instead the product itself is deliberately engineered to produce a financial gain by bypassing the process of economic production? This would be cheaper, quicker and easier to make money with, and yet, because the underlying financial product was economic gain in and of itself, there would be no question about whether a purchaser of such an asset was investing or not.
This is what Metacurrencies are: 3-dimensional currencies that both allow the purchaser the ease of investing into them as standard digital units of payment (cryptocurrencies) at the same time as being intrinsically-valuable assets in and of themselves via referencing or being engineered to harness imminent and substantial value both from inside and outside the participant investors’ digital and physical real-life networks.
