Let me put it this way. The thing fiat and crypto have in common is, that is has no value in and of itself.
It does not mean that it cannot be used as a medium of exchange, but there is no value in and of itself to either a piece of paper or a "token" .
It also does not mean that people are not willing to pay a higher price to obtain an imaginary value.
The difference between fiat and crypto is scarcity. THere are two dimension to it. One dimension is the total number of coins to ever be available. To compensate for mining concentration, and thus power concentration, division into fractions is key. However, when division cannot compete with the amount of fiat chasing the same number of fractions, what happens? Indeed, the price in fiat will skyrocket. We have known this, at least, since Adam Smith.
And, Bitcoin can be manipulated by long and shorts.
Another difference is ease of use, volume. When compared to SEPA, bitcoin is to SEPA, what the stagecoach with horses is to modern busses. What is SEPA? It is the European payment platform to manage money transfers. It is called instantpayment. And instant it is, although a max of 24 hours is the actual standard, most payments are executed instantly.
think debitcard payments
think transfers from bankaccounts within one bank
think transfers between bankaccounts from different banks.
Pre SEPA there was Paypal. Simply enter an emailaddress, the amount and you were good to go. Fintech's challenge is to bridge between payment systems: i.e. Paypal -> bankaccount; bankaccount -> Paypal.
So, it is to crypto systems to come up with a system that rivals SEPA but also bridges to and from it, to make transition easier. Fintech can play a fascinating role here.
If that is done, there is the dimension of usability. However, Bitcoin cannot process the volume that is needed to bring it to the moon. Other crypto's easily exchangeable for bitcoin, can add functionality to it, and extend usability and thus value.
Right now, bitcoin is very speculative. It is NOT a store of value in and of itself. But you could ride the wave to compensate for :
market manipulation to keep the price of PM down
market manipulation to hide hyperinflation
So, the best advice I could give is: enjoy the bitcoin rally and make sure you have your wallets setup, and some alternative crypto's to bitcoin. But most importantly: Have your selection of coins physically in your own storage, where you OWN it, hold it.
Understand what trust means. When someone says: this is trustless, you know you are not looking at the whole picture.
Let me put it this way. The thing fiat and crypto have in common is, that is has no value in and of itself.
It does not mean that it cannot be used as a medium of exchange, but there is no value in and of itself to either a piece of paper or a "token" .
It also does not mean that people are not willing to pay a higher price to obtain an imaginary value.
The difference between fiat and crypto is scarcity. THere are two dimension to it. One dimension is the total number of coins to ever be available. To compensate for mining concentration, and thus power concentration, division into fractions is key. However, when division cannot compete with the amount of fiat chasing the same number of fractions, what happens? Indeed, the price in fiat will skyrocket. We have known this, at least, since Adam Smith.
And, Bitcoin can be manipulated by long and shorts.
Another difference is ease of use, volume. When compared to SEPA, bitcoin is to SEPA, what the stagecoach with horses is to modern busses. What is SEPA? It is the European payment platform to manage money transfers. It is called instantpayment. And instant it is, although a max of 24 hours is the actual standard, most payments are executed instantly.
Pre SEPA there was Paypal. Simply enter an emailaddress, the amount and you were good to go. Fintech's challenge is to bridge between payment systems: i.e. Paypal -> bankaccount; bankaccount -> Paypal.
So, it is to crypto systems to come up with a system that rivals SEPA but also bridges to and from it, to make transition easier. Fintech can play a fascinating role here.
If that is done, there is the dimension of usability. However, Bitcoin cannot process the volume that is needed to bring it to the moon. Other crypto's easily exchangeable for bitcoin, can add functionality to it, and extend usability and thus value.
Right now, bitcoin is very speculative. It is NOT a store of value in and of itself. But you could ride the wave to compensate for :
So, the best advice I could give is: enjoy the bitcoin rally and make sure you have your wallets setup, and some alternative crypto's to bitcoin. But most importantly: Have your selection of coins physically in your own storage, where you OWN it, hold it.
Understand what trust means. When someone says: this is trustless, you know you are not looking at the whole picture.