| Chrizum said: To clarify, I'm not advocating for Bitcoin to completely replace traditional fiat money, I don't believe that is viable. But I do think Bitcoin is a very important counterweight to fiat money. Remember, the dollar used to be backed by gold. Nowadays, dollars aren't backed by anything, they just get printed out of thin air. Over 40% of Us dollars in existence now have been printed in the last 12 months. Yes, the pandemic played an important role in this, but the trend started way before the pandemic. And you are correct when you say interest rates are also responsible for inflation, but guess who controls interest rates as well? Yup, central bank again. It is extremely dangerous to put that kind of power into the hands of a select few who have no intention for proper wealth distribution. Look at Bitcoin as an improved kind of gold: it is scarce, like gold, but much easier to transfer and safer to hold. Bitcoin is a store of value, although currently it is too volatile too properly function as a store of value in shorter terms. When the price stabilizes at a much higher price point, it'll be a superior means of store of value than gold. |
It might be a select few, but ultimately, we select them. There is oversight and there are boundaries. But true, the bailout to the rich was pretty disgusting when the housing bubble burst. The big investors in Bitcoin better not come asking for a bailout if bitcoin ever crashes.
Property is still your safest bet to store wealth. Imo gold is also still a safer bet. Bitcoin is only worth something as long as people want it. Once it loses it high growth appeal, will it still be as attractive? How many people are going to switch to the next lucrative proposition. In the end, all you have is a key to a number stored in a secure file. Secure as long as people keep adding to blockChain.
Will the price stabilize at a much higher price point? Or will it stabilize at a much lower price point after the lucrative growth runs out. It is designed to become less and less rewarding to mine / maintain, requiring higher transaction fees to keep people motivated to maintain the network.
https://www.nme.com/news/gaming-news/700000-graphics-cards-were-bought-by-crypto-miners-in-early-2021-alone-2973241
Analysts at Jon Peddie Research claim that the crypto-mining industry was responsible for purchasing 25% of all GPUs in the first months of 2021. They estimate that this translates to “700,000 high-end and mid range” graphics cards which are worth around $500million in market value.
With the dwindling supply of new bit coins, will the transaction fees people are willing to pay be enough to keep this kind of growing investment going?
Anyway it's fascinating to watch, just saw a 7 million dollar transaction scroll by. 8.9 million 147 bit coins, 10, 11.7, 13 million. Stuff is moving.
https://www.blockchain.com/explorer?view=btc
