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> What does Bitcoin provide that a cheaper coin doesn't? Longer track record than the rest. More buy-in from people. Just like Gold vs other shiny metals.
by RestlessMind 4y ago
> What does Bitcoin provide that a cheaper coin doesn't?
Longer track record than the rest. More buy-in from people. Just like Gold vs other shiny metals.
- lumost 4y agoThe network effect is strong, if BTC actually was to take over for USD then people would have to have trust that BTC wouldn't evaporate the next day. BTC's incentive model and network effect provide that. Assuming of course that BTC could outplace USD.
- RestlessMind 4y agoI see BTC in the same class as Gold (hard assets without any intrinsic value and valued only because everyone else values it). USD is a different asset type - Fiat currencies which are essentially debts owed by various governments to the holders of those currencies. So BTC won't be replacing USD, imo.
- tiborsaas 4y agoGold has some intrinsic value, you can turn it into fancy jewelry, teeth replacement or cutlery :)
- RestlessMind 4y agoAnd yet its market cap, >10T USD, is not at all commensurate to the uses you cited. Governments hold gold in their reserves because they see it as a hard asset.