4 ms·

Someone could just come up with a new and more popular crypto. There no chance of gold being replaced by new element. I’m not saying it couldn’t surpass gold bu

Someone could just come up with a new and more popular crypto. There no chance of gold being replaced by new element. I’m not saying it couldn’t surpass gold but I think the motivation would be speculation rather than a store of value.

ArtTimeInvestor 2y ago
Bitcoin has a 15 year history of distribution amongst individuals, companies, institutions and governments. 15 years of building up decentralized mining so one can be sure no single player can mingle with the chain. 15 years of building a software ecosystem. 15 years of building an ecosystem of exchanges, ETFs, second layer solutions. 15 years of building trust in the technology and the brand. Why would anyone ever say "Oh, I'd rather store my value in that new crypto someone just came up with?". The decentralized control and the size and health of the ecosystem is what gives a currency value. You cannot just "come up" with that.
- TheAlchemist 2y ago
  I don't believe there will be any other crypto replacing bitcoin. But I also don't believe in the 15 years of ecosystem, trust etc. 15 years later, and there is still no use of bitcoin at scale for pretty much anything other than speculating and illegal activities. And even the speculating is not really a use of bitcoin, as 99% of it happens off chain. Genuine question though - you say no single actor can mingle with the chain. My understanding was that somebody with >50% of hash power can do that. Isn't the case now ?
  - ArtTimeInvestor 2y ago
    no use of bitcoin at scale for pretty much anything other than speculating You mean like bonds? That's a market cap of over $100T. somebody with >50% of hash power can do that Building up that power would cost many billion dollars of infrastructure and its hard to say how one would even build the manufacturing capacities to build it. And running it would cost about a billion per month. Then for as long as they hold that power, they could only stall transactions. Not move other peoples funds around. So very little gain for an unimaginable cost.
    - TheAlchemist 2y ago
      What bonds have to do with it ? Regarding the second point, my understanding was that you can basically decide what's happening right ? Why you couldn't move other people funds around ?
      - ArtTimeInvestor 2y ago
        What bonds have to do with it ? What can you do with bonds beside speculating? my understanding was that you can basically decide what's happening How so?
        MobiusHorizons 2y ago
        Bonds exist and are popular because companies and governments sell them to get money now at the cost of paying back more later. They can of course be resold to other investors but that’s not why they are created.
  - npoc 2y ago
    The use case is storing large amounts of value for long periods of time. Isn't this the single most important quality in order to be valuable over the long term? The bitcoin network is highly optimised for this and nothing else in the world can compare.

ArtTimeInvestor 2y ago

Bitcoin has a 15 year history of distribution amongst individuals, companies, institutions and governments. 15 years of building up decentralized mining so one can be sure no single player can mingle with the chain. 15 years of building a software ecosystem. 15 years of building an ecosystem of exchanges, ETFs, second layer solutions. 15 years of building trust in the technology and the brand. Why would anyone ever say "Oh, I'd rather store my value in that new crypto someone just came up with?". The decentralized control and the size and health of the ecosystem is what gives a currency value. You cannot just "come up" with that.

TheAlchemist 2y ago
I don't believe there will be any other crypto replacing bitcoin. But I also don't believe in the 15 years of ecosystem, trust etc. 15 years later, and there is still no use of bitcoin at scale for pretty much anything other than speculating and illegal activities. And even the speculating is not really a use of bitcoin, as 99% of it happens off chain. Genuine question though - you say no single actor can mingle with the chain. My understanding was that somebody with >50% of hash power can do that. Isn't the case now ?
- ArtTimeInvestor 2y ago
  no use of bitcoin at scale for pretty much anything other than speculating You mean like bonds? That's a market cap of over $100T. somebody with >50% of hash power can do that Building up that power would cost many billion dollars of infrastructure and its hard to say how one would even build the manufacturing capacities to build it. And running it would cost about a billion per month. Then for as long as they hold that power, they could only stall transactions. Not move other peoples funds around. So very little gain for an unimaginable cost.
  - TheAlchemist 2y ago
    What bonds have to do with it ? Regarding the second point, my understanding was that you can basically decide what's happening right ? Why you couldn't move other people funds around ?
    - ArtTimeInvestor 2y ago
      What bonds have to do with it ? What can you do with bonds beside speculating? my understanding was that you can basically decide what's happening How so?
      - MobiusHorizons 2y ago
        Bonds exist and are popular because companies and governments sell them to get money now at the cost of paying back more later. They can of course be resold to other investors but that’s not why they are created.
- npoc 2y ago
  The use case is storing large amounts of value for long periods of time. Isn't this the single most important quality in order to be valuable over the long term? The bitcoin network is highly optimised for this and nothing else in the world can compare.