sophie wrote: ↑
Fri Feb 01, 2019 6:24 am
I've always found it a little weird that Bitcoin could both serve as cash and as a wildly speculative investment. I just figured that it was going to have to stabilize before it could mature into a legit cash vehicle.
Sad to have missed the initial joyride though!
Yes I agree. Exactly! Bitcoin price is all we hear about.....the booms and busts. You have to dig deep to find out what it does / can do for humanity. As we've kind of concluded above.....value lives within human imagination shared collectively. If people really understood bitcoin is "free speech text money" and that THEY (the worldwide collective people) say at the same time....Yes! This is what we want....inherent to Bitcoins design (scarcity) value has increased and will be reflected in the price. This is why scarcity was built into the protocol, it provides an incentive to HODL. HODLers are rewarded for their risk. <-- This creates the booms and busts in the early stages. Early adopters get handsomely rewarded during a ramp up...news stories emerge, new buyers come in (uneducated as to why price went up.. AKA greed), Early adopters take profits, new adopters get burned and this goes on and on. Each time bringing more and more adoption to the educated. <-- The Bitcoin mining reward halving events (every four years) engourges / facititales this. Eventually ...given enough time, adoption and economy built around bitcoin...there will be no need to sell. <-- the hope / end goal. Thus the speculative price nature stabilizes and volatility risk is waned.
what is happing in Venezuela right now?.....is their currency really that different than the US dollar?...They are created the same, both backed by debt and the good faith of their government,...they are both paper! The difference lies within our "belief" of value.
Today...Would you rather leave your grandkids $3,500.00 cash, gold, Bonds, VTI, or Bitcoin? Which holds a greater risk / reward chance of providing life changing value...I don't know. But if bitcoin works out in the end.....there are only 21 million coins. Every millionaire today cant even own one (1) even if they wanted to....