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>effectively unusable for common transactions due to high fees, slow transaction confirmation rates, and highly unstable value Correct, but you somehow missed
by Giorgi 9y ago
>effectively unusable for common transactions due to high fees, slow transaction confirmation rates, and highly unstable value
Correct, but you somehow missed how demand for bitcoin was actually created - it is somewhat untraceable currency therefore used in "black market" transactions.
As those markets develop they will demand such currency in one way or another and that's novelty from an economics standpoint.
- Jtsummers 9y agoThis is true, I didn't mention that. That is a useful detail but ended up being a short-lived portion of bitcoins life overall as its pseudonymity was fairly quickly foiled through network analysis. Other crypto currencies will fare better in that regard and could become one of or the crypto for black market trade. But that was also something that held back bitcoins valuation. In 2011/2012 anyone who heard of it either understood its technical features, or thought it was "that thing for buying drugs online". Once it stopped being the latter (at least in common perception) the speculation really began in earnest as the exchanges were able to gain access to banks and other financial institutions. A blackmarket crypto that retains that reputation, whether used for legitimate business or not, will likely find its global valuation impaired by that reputation like bitcoin and it will be difficult for average folks with no interest in the blackmarket economy from "investing" in it. It certainly will be interesting.