this post was submitted on 21 Aug 2023
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Bitcoin: 4.7% believed to be in the hands of a single person, another 3.1% in the hands of four addresses. Deflatory so no incentive to use it to make transactions. Value depends on the network effect (i.e. a pyramid scheme). Small transactions now too expensive to be realistic. 24% of the supply was created in the first year, 35% over two years. Movement of funds takes too long to be useful. Those who got in early are guaranteed to be richer than those who got in late without having made any effort...
Crypto would be great as a replacement of the stockmarket but it's fighting to be cash instead and it's doing a bad job of it because it's cash as envisioned by tech bros, not actual economists.
I love posts like this, it lets me know most people still don't have the first clue what they're talking about. It's honestly a bit impressive how nearly every point you tried to make is either misleading or straight up wrong.
I love posts like this, it lets me know most crypto lovers don't have the first clue what they're investing in. It's honestly a bit impressive how you didn't even try to actually argue against what I said because it's just a list of facts.
What is the difference between speculating in bitcoin vs speculating on forex or gold? Is gold investing a pyramid scheme?
But that is what the initial post said: bitcoin works as an investment, but not as a currency. Reading comprehension skills are through the floor.
If Bitcoin is only good for speculation and has no other real use because it's too cumbersome then it's like investing in tulips, and we all know how that ended :)
Real currency is backed by the work, goods and economy of a country. Gold is a mineral with intrinsic value because it's useful to make things with. Bitcoin is backed by the hope of making profit by selling to a sucker that will pay more than what you paid... And it was meant to be electronic cash but people got greedy, it's better for early adopters pockets to make people believe it's a store of value that's hard to trade (like physical gold, funny that) instead of something you can easily use to transfer real world money from one person to another without parking that money there forever...
But then you realise that the point of a store of value is that you invest X in it and you know that it will store that value and you'll be able to withdraw whenever you need to and still have X or very close to it. A store of value isn't something you speculate on, it's somewhere where you put your money when you're close to retiring or if you live in a country where inflation is very high.