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How can it serve as a reliable currency when it has 20% swings in value almost overnight? Imagine selling something for 1 million dollars and by the time it hits your account, it is worth 800k. That doesn't happen with fiat currency.
I view Bitcoin and other crypto currency as a great speculative vehicle for those willing to take the risk. I do not see it as a reliable currency to conduct trade.
Bitcoin has in recent months soared to an all time high[...]
If you invested a thousand dollars in Bitcoin on April 26, 2014 ($457.24 per Bitcoin), your investment right just a few minutes ago ($51,258.97 on April 23, 2021) would now be worth $111,083. That is a return of 11,083% in seven years. No doubt, that is very impressive.
[...]
What do you think?
That $1000 in April 2014 got you around 2.187 btc. In July 2014 you could have taken just 1 of those btc and bought into the Ethereum crowd sale and received 2000 eth in return. The ETH price as I write this is $2,318.29 yielding you $4,636,580 today.
You could now (with some complications and risk) stake those 2000 eth and start earning an income at the current rate of 2.4362 eth ($5,620.44) a week or around 127 eth ($293,000) a year. Reinvestment would compound this.
Holding btc and eth over these years would have also given you basically free money when these chains split. The 2000 eth also gave you 2000 etc (Ethereum classic), if you were lucky and sold near the top for etc around $40 ($31.59 today) that could have netted you an extra $80,000.
The btc also gave you bch which maxed around $3,750. There were several other minor btc splits that if you kept up with it you could have cashed in some here and there for extra return.
During the ICO craze anyone with ETH on the chain was rained on with free tokens that were dumped for whatever you could get.
It seemed like people discovered the magic of creating money out of thin air. Even now with DeFi booming, you can do things like give yourself a permission less loan. No application, no company in the middle just you, your collateral, and the smart contract. Turn your internet beans into usd cash without the penalty of capital gains.
Some people do this just to leverage by using the cash to buy more crypto, push that back into the contract/loan, increasing your collateral, allowing you to borrow more cash, and repeat till you reach your limit.
These loans are interesting in that you are using an appreciating asset (btc/eth) to borrow a depreciating asset (usd), so if this holds true it will get easier to pay back as time progresses.
Forget transaction times, BTC is deflationary. Mining is becoming increasingly expensive so growth in the BTC supply is decelerating. That's why the dollar price has risen so much.
A deflationary currency is bad because no one will spend a currency if it's worth more tomorrow than today. Currency is the circulation in the economy; it has to change hands frequently to be useful. That's why a good currency experiences slight inflation, to match the general expansion of the economy.
BTC can be great as an asset, but it's not a currency.
I haven’t read this thread but am a Bitcoin cheerleader and cryptocurrency believer. I have invested for years and know several people who started at the beginning of Bitcoin. Here’s an interesting tidbit I found today.
Louisiana’s GOP-controlled state House adopted a resolution this week praising Bitcoin and encouraging state and local governments to utilize the increasingly popular cryptocurrency
Lawmakers argued in the resolution that Bitcoin “could potentially replace gold as a monetary reserve,” adding that the digital currency has not only benefited businesses, but has also “proven to be a critical tool for citizens around the world to protect themselves from currency debasement.” https://thehill.com/homenews/state-w...mally-praising
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