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by raverbashing 2066 days ago
What you're saying applies to crypto-currencies in general, but not necessarily to Bitcoin, which has some thorny issues.

Yes, maybe the popularity of BTC will overcome the issues, but I doubt.

1 comments

No, it doesn't. Money, perhaps more than anything else in human society, exhibits network effects that incline it toward winner-takes-all dynamics. Every money implicitly competes against every other money.

I recommend taking a look at something like https://bitcointreasuries.org/

And don't just glance at it - try asking some probing questions, like "What does this mean?" and "What might I be missing concerning the underlying dynamic at play?"

You can also try reading The Bitcoin Standard for a good analysis of the dynamics and history of competition between different forms of money - the central thesis being: History has shown that you can't protect yourself from someone else holding money that's harder (better) than yours. Bitcoin is better money than anything else we have or have ever had.

Money, perhaps more than anything else in human society, exhibits network effects that incline it toward winner-takes-all dynamics.

That's not how money works, if by money you mean a currency. Currencies are issued by sovereign governments, and don't exhibit network effects within that sovereign jurisdiction, because they don't need to. They're legal tender; you're required to accept them, and everyone needs them to pay taxes.

If you mean money as in wealth, that's an entirely different topic.