It's still the fundamental dilemma. How can bitcoin retain value if it is only a store of value, based on PoW? At some point it must become a medium of exchange for the system to keep on working. But it doesn't make any progress in that direction.
@lxo If you are looking for more stability in a Store of Value, Bitcoin doesn't really look like a good candidate IMHO.
@lxo Because cryptocoins are not legal tender. Currencies are. The fundamentals are completely different. But still Bitcoin and other cryptocoins position themselves as currency when needed. Though they simply don't fulfill the criteria.Which becomes obvious once you replace "bitcoin" with "money" and try to find out if the sentence still makes sense - which was my point. It doesn't.
@lxo No. I never said that Bitcoin isn't investment because it is money. I explained how that way of thinking simply doesn't make sense.
@lxo Using currency arbitrage to make money is quite OK and normal. I wouldn't call that investment, though. Distributing your money across different currencies might make sense in some regions/markets - but all of this happens with currencies that are legal tender. Bitcoin and other cryptocoins are thus a different category of financial vehicles IMHO. But the Cryptoworld loves to see it as money when it fits, as investment when that better fits. That doesn't make sense to me.
@lxo Yes, but it isn't about me. I can see through this and decide for myself it doesn't work in either way for me. That's my personal opinion. I am however worried about people that don't know all these things and think it is a wise investment decision to buy bitcoin, unaware that it's failure to be a medium of exchange or a unit of account will make any long term bets on bitcoin far too risky, again IMHO.
With quantum computing coming slowly but inevitably out of the fog of the future, a bitcoin collapse may very well be inevitable.
That said, gold is only worth what it's worth because people agree it is.
Silver has medical application, but golds only practical use is as a cheap alternative to platinum, and we don't need that much of it.
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