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by lifty
1854 days ago
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This is a very astute point and it's how I've always thought about Bitcoin and other crypto assets. I never understood why people have to debate whether it will take over currencies like the USD or EUR, which it will probably never do. Crypto assets can have utily for trading among enemies or situations where normal fiat currency cannot be used. Think about places with dysfunctional institutions, escaping inflation in places like Venezuela or fleeing war. And then there's the programability aspect which is a totally novel use case which I'm not going to go into. |
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Maybe crypto will get there eventually, like tech crashed in 2000-2001 (AMZN down 90%) and things have 'stabilized' now, but it's been over ten years already since Satoshi published and this is where we are:
> So. Bitcoin fell 53% in five weeks, and then it rallied 35% in four hours. Two observations for now: 1) Nobody in their [right] mind would enter into a transaction denominated in bitcoin; 2) It's too early to say the bubble's burst (or to say this is a new bull market).
* https://twitter.com/johnauthers/status/1395067576334655489
When your currency (?) is more volatile than the goods/services you're using to it buy, I'm not sure how useful of a 'currency' it is. Or a store of value, or a unit of account.
Is Bitcoin or other crypto more or less volatile than the price of a barrel of oil or frozen concentrated orange juice futures?