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I mean, a lot of things are thrown out here as rhetorical questions that actually have simple answers that undermine the thesis of the piece. It doesn’t look l
by moomin 6y ago
I mean, a lot of things are thrown out here as rhetorical questions that actually have simple answers that undermine the thesis of the piece.
It doesn’t look like a currency precisely because it doesn’t have the properties of fiat currency. It’s not a good way of performing small transactions because the transaction costs are so high.
There are precendents for things that have high value but low intrinsic value. Gold and diamonds are good examples. So the question is, why is Bitcoin fundamentally different from these?
- BitwiseFool 6y agoI think the scale of the transaction is the key to whether or not using Bitcoin makes sense for the exchange. An eight dollar transaction fee on fifty thousand dollars is an acceptable amount but that same fee on a coffee makes no sense. It's roughly akin to trying to pay for everything with 100 dollar bills (The out of print 10,000 dollar bills would be an even better comparison). It's still a valid medium of exchange but it's not really appropriate since it's such a hassle to do.