Just a thought on this one, I did comment on few youtube videos about Bitcoin and I always had a lot of comments saying it’s amazing go invest in Bitcoin! you will make fortune but all these profiles had 0 subscribers and only 1 or 2 comments. Something fishy about that…
But essentially Bitcoin’s main utility is in transferring finances from one person to another on a distributed ledger. However all the big financial players like Visa, Mastercard, ING to name a few are doing more and more research into blockchain for money transfers, KYC, anti-money laundering, bond and asset issuance, and just to have a solid and transparent distribution and ledger system. Once this is in place, it’ll render Bitcoin’s main utility null. Not to mention however that the utility as it stands currently is so volatile that transference of finance is not ideal even now. Nobody wants to get paid in something that can lose or gain value as quickly as Bitcoin does. These days with the price skyrocketing to 28k, it’s even more a reason to avoid transferring wealth this way IMO as that bubble is going to burst. So its utility in transference of finance is unstable. Not to mention also that Bitcoin created its own utility - Bitcoin has the ability to be transferred on the Bitcoin network, in essence being judge, jury and executioner as I mentioned on the thread link above. Precious metals or real estate, for example, do have real intrinsic value and utility in that they are used in technology (for metals) and for a functioning society (for both metals/real estate).
So in essence; Bitcoin has no needed utility, the utility it does have is unstable and self created, the semblance of utility it does have will be used in future by traditional financial institutions with stable currency, and it can’t be considered a store of value as it has nothing backing it besides the time and electricity people put into mining it. It’s a self driven behemoth driven by supply and demand for supply and demand’s sake.
I have bought and sold bitcoin for profit in the past, and will do so again in future, as the aim of the game for me is to make money! As an investment however, I’m avoiding it for the reasons given above.
Blockchain tech, which Bitcoin is built on though, I do love. I can see that having a bright future.
Check this, it’s based in Netherlands, and uses SEPA instant transfers sent through Bunq, fees are low, just 0,25% if you are taker and 0,15% if you can fight bots, it takes some time to get the right price, use half of your money and cancel order when outbid. Bitcoin to your wallet is at 0.00020000 flat fee.
I am genuinely curious though as every argument there is for Bitcoin that I’ve come across can be negated.
I didn’t set out to have this opinion either with some bias, and I do like the concept of Bitcoin and I do love blockchain. It’s just the more information I’m presented with, the more I’m turned off it from an investing point of view and more moving towards stocks, traditional investing etc. Turning into my dad slowly but surely!
I would simply say bitcoin has been accepted as store of value. Just like a gram of gold , a dogecoin or a rare painting, if people accept it as a store of value then that’s all that matters and it doesn’t really matter what it is as long as it’s been accepted by the masses.
Sure, and that gives something value. It doesn’t make it a store of value though. There is no guarantee against depreciation and it is too unstable. Bitcoin can’t be a store of value. I’d sooner use stocks as a store of value over Bitcoin, despite those not being a store of value either!