Thanks for taking the time Harry - much appreciated and certainly clears a bit for me. A big takeaway for me is the concept is not that much different from how FIAT is devised.
That is, although the amount of dollars that can be created are limitless (think inflation) - the $$$ price of each dollar will always be the same...although the purchasing power of each dollar can be radically affected.
Whereas, the amount of Bitcoin that can be created is limited to 21 million (I believe) - but the $$$ price of each Bitcoin can also be limitless AND radically change (due to the scarcity factor)...and given everything is priced in FIAT, Bitcoin's purchasing power is also affected.
On that basis, is Bitcoin a currency or an asset? To be a currency, it has to be a store of value and I'm not convinced it is as, for me, it is simply numbers (or 000's) on a device. Apart from the "storage" computers themselves, there appears to be nothing tangible behind it. If the price of Bitcoin is ~USD$72,000 now, when hardly any retailer is accepting it, what will the Bitcoin price be when every supermarket and petrol station freely accept it as a means of exchange?
Same thing for an asset - where does Bitcoin derive its value from (please don't say its scarcity)? It only seems to have value based on the level of a marketing campaign and FOMO - hence its volatility. Thinking about it, I suppose you could get the same result if you were to use a special type of "limited" bird's feathers, or sea shell, or ....
I love the privacy factor - but I get that from cash (well, at the moment anyway).
Please don't take my thoughts as criticism - it is just what I can see.
Price at posting:
0.0000 Sentiment: None Disclosure: Not Held
