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What we're seeing isn't the utility of Bitcoin going up, we're seeing what happens when supply meets demand. The total number of Bitcoins that can ever be mined

What we're seeing isn't the utility of Bitcoin going up, we're seeing what happens when supply meets demand. The total number of Bitcoins that can ever be mined is fixed, but I think the real reason the price is going up is that the current rate of mining can't sustain the rate at which people want to get into crypto. But what change in utility is driving the increase in demand? Right now Bitcoin isn't good at (and no amount of revisionism will change this) it's original purpose of being currency, which is literally Bitcoin's only utility other than the fact that there are a limited number of them. So it's actually less useful now than in the past... meaning the increase in demand is in spite of that change, leading me to believe it's all due to more people wanting crypto. I feel the same way as you, I think a lot of people who don't know anything about crypto are making rash decisions and it's setting off alarm bells in my head too. I don't even know why people are buying Bitcoin over most alts because to me Bitcoin has so much less utility compared to what BCH, ETH, Monero. Not that Bitcoin is worthless, it's just that it seems like people are only buying it because it has the name "Bitcoin". That's why I think it's going to crash.

headmelted 9y ago
I think most of this can be explained by thinking of Bitcoin not as digital dollars, but as digital gold (a perpetually limited, deflationary value store that is immune to central-bank meddling). A lot of us in tech are really excited about crypto, but the economic realities mean it's very likely that for any particular token to be treated seriously as a currency it would need central bank support - which is anathema to Bitcoin's stated purpose.
- opportune 9y ago
  Yes, I am aware of that. I'm not confusing crypto with Bitcoin, actually I'm bullish about crypto in general. I'm saying that Bitcoin the currency is like pewter or lead compared to BCH or ETHC. That's why it's not gold. It's like a version of gold that's heavier and more useless than some other perpetually limited, deflationary value store. In fact I think I'm going to start calling Bitcoin "digital lead" because it's so hard to move it around.
  - headmelted 9y ago
    Digital lead. I like it. We ICO on Monday!
- RealityVoid 9y ago
  "but the economic realities mean it's very likely that for any particular token to be treated seriously as a currency it would need central bank support" I keep hearing this, but I'm not convinced. I think currently, BTC is digital gold instead of digital money more because of technical issues rather than because it isn't backed by a central bank. What would be the missing piece that a central bank would bring? Price stability?

headmelted 9y ago

I think most of this can be explained by thinking of Bitcoin not as digital dollars, but as digital gold (a perpetually limited, deflationary value store that is immune to central-bank meddling). A lot of us in tech are really excited about crypto, but the economic realities mean it's very likely that for any particular token to be treated seriously as a currency it would need central bank support - which is anathema to Bitcoin's stated purpose.

opportune 9y ago
Yes, I am aware of that. I'm not confusing crypto with Bitcoin, actually I'm bullish about crypto in general. I'm saying that Bitcoin the currency is like pewter or lead compared to BCH or ETHC. That's why it's not gold. It's like a version of gold that's heavier and more useless than some other perpetually limited, deflationary value store. In fact I think I'm going to start calling Bitcoin "digital lead" because it's so hard to move it around.
- headmelted 9y ago
  Digital lead. I like it. We ICO on Monday!
RealityVoid 9y ago
"but the economic realities mean it's very likely that for any particular token to be treated seriously as a currency it would need central bank support" I keep hearing this, but I'm not convinced. I think currently, BTC is digital gold instead of digital money more because of technical issues rather than because it isn't backed by a central bank. What would be the missing piece that a central bank would bring? Price stability?