Explain to me why etherium is worth money

>I understand why bitcoin is worth money. It has a fixed value
You don't understand shit.

An analogy Veeky Forums likes to make is that BTC is like gold (minus any actual application, gold at least has industrial uses), while ETH is like petrol, in that "gas" (tiny portions of an ETH, like Satoshi are to BTC) are exchanged to execute smart contracts. Yes, you can technically create more petrol, but there are times when demand will outstrip supply, driving the price up. The reverse is also true. At this point there's a great deal of supply and relatively little (but growing) demand.

typo on my part. I meant that BTC has a fixed quantity, making it inflationary in nature. I don't see why one should expect the price of Etherium to continue to grow over time, because the market will want the price of ETH to be as low as possible.

Simple. Dollar is backed by main resources sales, and the most powerful organization in the world. Nukes, Companies, Lawyers, Lobbies, Media-outlets, and over all Technology. Said organization makes sure their fiat-coin can be exchanged for oil, finance, gold, goods, food. Their currency has the default monopoly of global status, region that defy it gets their government remove or isolated.

Other fiat currencies are the alt-coins of the dollar. Central Banks are the devs, marketing their product as possible and hoping holders don't fuck it or whales over killing the market.

Etherium is worth because of speculation. Its not a commodity, not a currency, not even a useful blockchain. Its marketing was and is above everyone else, their dev didn't did stupid decisions, and the market cap has gone up to the roof.
>No its has computing power
Listen to yourself, its almost like communism preach. An utopia.
>But if alt-coins are a big speculation then the bubble will end someday
Look at the stock market. Dividends don't justify even the 5% of its market cap. Yet people "invest" on them.
>No real money, it didn't had a service or product.
Listen kids. You were all taught wrong. The main money producer is not the gov as they only increase the supply. The main multiplier is not the banks nor the central bank nor the fed reserve. Not even liquidity from the ever growing assets around the world.

The main money producer is you. The average joe that practices usury. You give in expectation to have your initial investment plus something. Believe me, banks can't ever dream to take a share of what the whole derivatives are multiplying.

PD Where do I collect my check for awakening you?

Post address for granting me the red pill

>I understand why bitcoin is worth money.
Are you sure you know?

>It has a fixed value, and explicitly designed to be a store of value. Sort of like gold.
It doesn't have a fixed value though. It's value is based off of speculation. It's nothing like gold, because gold is physical, has intrinsic value, and used as an industrial material. Bitcoin is not.

>But why is Etherium worth anything? What is one unit of Etherium?
Why is Bitcoin worth anything? Etherium and Bitcoin are both "mined" and sold on exchanges based on speculation of what it is worth. There is nothing physical to exchange, nor can either be used for another purpose except "currency".

>The technology being used (blockchain and smart contracts) doesn't care about quantities of Etherium at all. And it is fiat (more can always be created). I don't get it. Can someone explain?
I don't think you understand the technology then. If there were no bitcoins, or eth, then the blockchain just doesn't work. Bitcoin is fiat as well. Fiat doesn't mean that more can be made or not, but that there is nothing of value behind the currency. All currencies in the world are currently fiat.

you should actually watch this, but I doubt you will...
youtu.be/ByFfzMORXSM

>It has a fixed value, and explicitly designed to be a store of value

Did you mean "fixed amount"?

(It's not actually a fixed amount until the supply is exhausted, and that won't happen for another 80 years at the target inflation rate. It's also deflationary due to wallets/etc. becoming inaccessible over time.)

>But why is Etherium worth anything? What is one unit of Etherium?

Ethereum is a platform to build decentralized applications/tokens upon. ETH is the currency used to fund transactions in the platform. Gas is the transaction fee of the network, but it's not the same thing as ETH. ETH has a monopoly on Gas right now.

>And it is fiat (more can always be created).
It is created at a fixed rate (which is intended to rapidly decline to 2%/y inflation). This is unlike fiat because it's not done at the whims of an organization (the Federal Reserve) and is very similar to BTC's levels of inflation.

>Simple. Dollar is backed by main resources sales, and the most powerful organization in the world. Nukes, Companies, Lawyers, Lobbies, Media-outlets, and over all Technology. Said organization makes sure their fiat-coin can be exchanged for oil, finance, gold, goods, food. Their currency has the default monopoly of global status, region that defy it gets their government remove or isolated.

This is why you don't take anyone on Veeky Forums seriously

Honestly I love ETH but what scares me about having money in is the security issues that come with having a fully fledged programming language on the blockchain.

It's only a matter of time before another dapp gets hacked and the normies get scared and tank the price.

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Thats why im in etc.

Well it does care about the quantities - the miners are a scarce resource, if you want your cock sucked like the fancy restaurant, the casino, the bank, the dealership, the club does for you, you need to put up the value for them to want to do that, that means you need more of the accepted currency than the next guy to be able to put up more value than the next guy, so here we have increased demand for accepted currency.

As ETH at any point in time does have a limited supply, an increase in demand would naturally put an upward pressure on the price.

YES it is inflationary and more is being produced - however the pace at which it is produced is controlled by the costs of production. The miners will produce for as long as they are efficient, that is they are making a profit - if it costs $2 to produce an ETH that can be exchanged for $1 you are not efficient, no matter how badly you want to produce you will eventually go broke and exit the market, everybody will exit until only the most efficient remain, the most efficient are those who are able to produce with the least input, this is best use of the limited resources required as input. At some point it becomes inefficient for anybody to produce, thus the rate has some limit.

So, if the upward pressure outweighs that limited rate, that is the demand is greater than the amount that is produced efficiently, the price must increase. if the pressure is perfectly countered by the production the price would remain static. if the pressure was less than production the price would fall.

YES they can just change the code and 'print' as much ETH as they want, so too can our governments switch on their money printer and print as many bills as they want, but in reality it changes nothing, the price would fall on the increased supply and you now need more ETH to cover your input costs, the game is exactly the same except you have destroyed value in your hodlings.

Source: pic related.

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It has value because it has the properties of money and therefore people will use it as such.

(((Federal Reserve)))