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RE: Why I'm Negative on Bitcoin

in #bitcoin7 years ago

Whining about negativity is not an argument, just the chatter of people desperately trying to rationalize their exposure to a massive bubble. I've never actually seen anyone even try to justify Bitcoin's market cap, merely shrieks about a digital store of value while clearly not understanding what a store of value is. If Bitcoin isn't being/can't be used in commerce in a significant way, what value is there to store in the first place? What is the utility value of a payment network with fees around $20-30 and a maximum capacity of ~350,000 transactions/day? Zero, or very close to it. It's only viable use-case is large remittance payments, which can also be executed in any other cryptocurrency. The rampant speculation filling up blocks and driving up fees has destroyed any utility value it may have commanded.

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Fairly accurate representation of what reality is, although I think it's worth a little more than you think due to future potential to make it much more useful as a transaction medium. Otherwise, it's pretty much as you describe it (unfortunately).

It is unfortunate, since a lot of people's first experience with cryptocurrency may well be buying Bitcoin in the 18-20k range (maybe 30k, 50k, 100k, impossible to tell how large a bubble can get) and bitterly taking a 40-60% loss after the bubble bursts and they give up on it. The entire crypto space would be better off if its poster child were a more fundamentally sound project, with a more limited downside due to a solid floor of utility value. Hopefully it goes more smoothly than I see it going, because a lot of people might be left with a sour taste in their mouths about distributed ledgers as a whole for a long time after falling for peak-bubble FOMO.