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Blockchain is a promising technology with potential use cases, but even if blockchain technology becomes widespread, how does this justify the current valuation
by getToTheChopin 3y ago
Blockchain is a promising technology with potential use cases, but even if blockchain technology becomes widespread, how does this justify the current valuation of Bitcoin -- let alone justifying future price appreciation?
- epuplett 3y agoI don't disagree re. pricing. My interest is more the technology generally. I have had some recent convos with Bitcoin founders specifically who have made me understand better its utility in a wider digitized financial system because of it's more secure Proof of Work system (vs ETHs Proof of Stake).
- lowkey 3y agoBitcoin’s value can most simply be explained by contrasting it with a fiat money supply controlled by successive governments and central banks who are addicted to printing money. They know that this hurts consumers and businesses by stealing wealth by way of inflation but they simply cannot stop. Bitcoiners believe its value is trending towards infinity on a long enough timeline, premised on the fact that central planners can not and will not ever stop printing money. By contrast, Bitcoin is unique in that its supply is programmatically fixed and is perfectly inelastic in relation to demand. If Bitcoin’s price increases 100x the supply curve remains exactly the same. No other commodity, asset or currency holds this property. If you believe governments and central banks will stop printing money, Bitcoin’s value proposition collapses.