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by shred45
2316 days ago
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This to me is the real value. I'm not a huge believer in Bitcoin, but try moving > 10k USD between bank accounts (just operating a small business I run into this several times a year) and you will quickly see the appeal. High fees, multi-day settlement times, raised eyebrows. It's just a mess. With cryptocurrencies you can move millions of dollars for less than a dollar in fees and it executes in as quickly as 10 minutes. There is definitely a downside in terms of price volatility, and other cryptocurrencies offer much better settlement times (beyond the network effect, they seem to offer more long term value here than Bitcoin), but having what is essentially gold that can teleport is very appealing. Sadly the ecosystem is not quite to where I would actually operate my business in this manner, but I can definitely see the value. |
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But, if you have 1 trillion USD of value (insert the actual value that is meaningful to you) that you want to transfer around the world, you certainly want to do it in the most secure way possible. Especially without having to get permission from your local bureaucrat first. Bitcoin certainly makes that possible. The problem being that buying up 1 trillion USD worth of bitcoin is going to obviously move the market and anyone holding enough to do that OTC, makes it pretty centralized.
I do feel like there is a middle ground here and that is to look at it as more of a store of value. Just buy and hold it in the same way that people hold onto gold. If you look at the 100yr charts for gold, they are all over the place. 2008 was one of the largest dips that set things back at least 30 years! Now things have bounced back... but it is all on speculation and really has nothing to do with some sort of 'intrinsic value' of gold.