So what was that about Bitcoin?
(www.marketwatch.com)
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There has been a lot of USE of Bitcoin.
Unfortunately Bitcoin is not destined to be a long term holder of VALUE.
It was always designed as a quick universal exchange, not digital currency. There is nothing backing Bitcoin except it's users and that bubble will burst like every single one before.
Who told you it's not a long term holder of value?
Most people who own it think of it as digital property. Like owning worldwide real estate. For countries that don't have assets to purchase, it's the only way.
"For countries that don't have assets to purchase, it's the only way."
Because with Bitcoin, you will own nothing (real) and be happy :>)
It is backed by the huge expense of electricity in mining it. If it was backed by nothing, anyone could issue it without cost.
Bitcoin is backed by proof-of-work known as mining. The proof of work and scarcity gives it its initial value. Now that El Salvador has converted to using Bitcoin, it has a continuous use and its own country economy.
It's not going anywhere and there's no bubble to burst.
There is nothing backing gold either except a series of quantum fields and physical laws that confine energy into a particular pattern. Bitcoin is backed by a series of mathematical algorithms and Boolean laws. These limit its creation in exactly the same way gold is limited by physical processes.
True, there may be a few industrial uses of gold, but nobody tries to argue that is what gives gold its value. If the math behind Bitcoin ever fails, it will become worthless. If Star Trek style matter replicators are ever invented, gold will become worthless.
It is naive to say gold is real and Bitcoin isn't. It's just personal bias that makes you think that. At our current technology level, both can be considered to have backing. You're welcome to your biases obviously, but they aren't universally accepted and based in fact.
What backs bitcoin itself is the processing power and electricity it requires to run the network.
As long as the coin is a currency and is being used then there’s no “bubble” to be burst.
that's nonsense, the power is dissipated and wasted as heat, you can't turn in bitcoin for more power, it is not a reversible process, which is required for something to not be a fiat currency. it's a fiat currency, it's not backed by anything but hopes and dreams
You do realize that many of the reasons gold was originally valuable… are the same reasons bitcoin is valuable.
A lot of what isn't mentioned is that people think of it as valuable, so then it is.
I don't think BTC will crash ever. It is too mainstream, people believe it to be an asset now. The whole thing about it not being valuable or having any use is gone.
Scarcity and transparent is one of the best arguments. You cannot create more BTC out of thin air. No FED secretly creating more.
Exactly
It is not possible to create any more new bitcoins (outside of what is left to be mined which is only a few million).
This is exactly why BTC will continue to rise. And it’s exactly why gold doesn’t rise with any sort of similar pace. Gold can be quite literally be grown in labs.
bitcoin can be crushed by a gold (or silver) backed crypto, which is what i expect to happen, but we'll seeeee
anyone can make a crypto, eventually people will figure out that bitcoin isn't special, and has been manipulated, and controlled in order to simply steal money.
A crypto doesn't need to be backed by gold. In fact, that would be redundant, as both gold and crypto serve exactly the same purpose. They are merely accounting mechanisms to facilitate trade in real wealth...i.e. necessary goods and services.
They both derive their utility in this function (which establishes their value) by the fact they can not be created infinitely out of nothing. Neither gold nor Bitcoin really have intrinsic value. It what they can be traded for which gives them value, which includes the perception people have that they will continue to perform that function in the future.
Anyone who is smart will hedge their bets on both types of currency. Public blockchain, limited, mined cryptos such as Bitcoin, and gold back currencies.
(Note that PoS cryptos (proof of stake) and CBDC's like Ripple don't have the required legitimacy to be used as money. They are like fiat currencies, which can ultimately be controlled by a small group and lose that legitimacy of being a trustworthy medium of trade and storing value.)
It already exists multiple times..
PAXG XAUT
They are valuable cryptos but not as valuable as gold. Which is a very slow rising asset. In fact it is slower than the top 100 cryptos.
BTC, ETH, these two will continue forever and out perform every other asset class going forward for the foreseeable future.
The bigger they are, the harder they fall.
oh boy... .
:D
I sincerely hope that everyone here who has bitcoin, does well.
Thanks!