| > Well, Bitcoin price is still 30K USD and the market cap is almost 600B USD. That is a very good macro proof that people value Bitcoin. Let’s not forget that Bitcoin price averages a volatility of ~4% daily. With Bitcoin, any given individual could have sold goods or services and make a profit one day, and lose pretty much everything in a week. If that is not a sign of Bitcoin being used as a vehicle for speculative markets, I don’t know what it is. > Have you actually bothered to talk to anyone? I have had in-person conversations with people from multiple despotic or shitty regimes (Nigeria, Sri Lanka, Iran) to understand how and why they use Bitcoin. Using Bitcoin properly requires a certain level of tech and financial literacy most people just don’t have. It also relies on expensive infrastructure that is highly dependent on mining being profitable. Again, this is not 2011 anymore, nowadays only the very wealthy can expect to profit from Bitcoin mining. I guess the question is, what is so different between a crappy hyper inflated currency, controlled by an authoritarian government, and a crappy volatile cryptocurrency, controlled by a few wealthy individuals? On that regard, If I were to call any friend from Venezuela and ask them about starting to use Bitcoin right now, they would surely get some 2014 vibes. |
But most of the users don't mine - they just buy and hold. It is pretty simple and is as complicated (or simple) as buying and holding gold.
> a crappy volatile cryptocurrency, controlled by a few wealthy individuals
No idea how that is relevant since we are discussing Bitcoin :-p. In seriousness, that is where the social belief comes from. If people believe Bitcoin to be controlled by a few wealthy individuals, then either they will stay away. If they believe Bitcoin to be a truly decentralized store of value not controlled by any single government or entity, they will flock to it. If they are right, they will be rewarded with an asset which will appreciate in the long run. If they are wrong, they will get burned.
So far, believers in Bitcoin seem to be getting rewarded handsomely and naysayers are proven wrong multiple times (https://99bitcoins.com/bitcoin-obituaries/).
> If I were to call any friend from Venezuela and ask them about starting to use Bitcoin right now, they would surely get some 2014 vibes.
I met a Venezuelan last week and he regularly sends Bitcoin back home to help his family. Fiat exchange rate is artificially suppressed so his family would receive less if he sends USD. Gold is hard to send from the US to Venezuela. No one can stop Bitcoin transfers though and it is more trusted than the local currency.