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You're right, it is not a good currency today. In the interim period, BTC is extremely risky, volatile, and not a stable store of value. The value proposition i
by whack 5y ago
You're right, it is not a good currency today. In the interim period, BTC is extremely risky, volatile, and not a stable store of value. The value proposition is that:
- People will want to adopt BTC as a mainstream currency in future, for all the reasons I listed earlier
- When BTC is adopted as a mainstream currency, the value of each BTC will be X (in relation to raw materials, manufactured goods, etc)
- Because today's price of BTC is much smaller than X, you stand to make a huge profit if you buy BTC, and it later becomes a mainstream currency
Ie, BTC is a startup that if successful, everyone will want to use in the future. And that makes it a very valuable investment for angels/VCs today
- itake 5y ago> - People will want to adopt BTC as a mainstream currency in future, for all the reasons I listed earlier How can this happen if the price never stabilizes (because no one wants to spend what they have)? > - When BTC is adopted as a mainstream currency How can this happen if the transaction costs are $10+? To pay for a Starbucks coffee, it would cost $5 for the drink and $15 for the transaction fee. > - Because today's price of BTC is much smaller than X, you stand to make a huge profit if you buy BTC, and it later becomes a mainstream currency How can it become a mainstream currency if everyone treats it like a speculative investment and the transaction costs prevent it from used in "micro" transactions? The entire system disincentivises use as a "mainstream currency"