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It needs to have demand to be worth anything at all. At that demand in aggregate assigns value to bitcoin. The fixed emission schedule of BTC means that there
by conanbatt 6y ago
It needs to have demand to be worth anything at all. At that demand in aggregate assigns value to bitcoin.
The fixed emission schedule of BTC means that there is no issuer that can capture increased demand in the good, but the holders of BTC get that benefit. So the only thing you need to bet on is if there will be more aggregate demand for the 21 million btc in the future than there is today.
With fiat currencies, when there is a crisis like COVID and the demand for money skyrockets, the fiat issuer can print out the money and do whatever it wants with that surplus demand.
If BTC makes it so the aggregate demand in currencies is split partially from fiat into BTC itself, then it will be a great transfer of wealth from governments into BTC owners.
There's your value.
- tekknik 6y ago> If BTC makes it so the aggregate demand in currencies is split partially from fiat into BTC itself, then it will be a great transfer of wealth from governments into BTC owners. And will quickly be banned by said country.
- conanbatt 6y agoIf this scenario happens, BTC will have demonstrated enormous power and value, and it is supposedly designed precisely to resist such attacks. I also doubt on the feasibility of a global crackdown on miners in the entire world.
- tekknik 6y agoThe enormous value being money laundering? Also the miners ultimately have to swap for some fiat, so they can’t stay in BTC “heaven” forever. Further buyers set the price, not miners. Especially given that using BTC is a luxury except for the underbanked, who also don’t have money and are selling their BTC to get some.
- conanbatt 6y agoIf money laundering is the only use case btc has, and it is the best way to do money laundering, it's going to make a lot of people rich.