RE: Bitcoin Falls While Others Soar
You are viewing a single comment's thread:
BTC is in a bubble because it offers no real utility beyond what is offered by its competitors. The only thing it has over other cryptocurrencies is a the brand/popularity and more PoW miners (which could easily switch to a different coin such as BCH)
It took me a bit, but I think I understand your perspective. The brand popularity is certainly there as is the presence of other currencies. Despite its apparent popularity in trading, the purchasing power is still growing. You can buy things with it, but not as easily as conventional currency. It's in this regard that I feel it's in a bubble. If it can be applied as commonly as a conventional currency, then perhaps the price would be justified. Over time it just might be.
Time will tell how significant Bitcoin's volatility remains. The Federal Reserve in the U.S. seems to have few allowable actions to stabilize the economy. I feel that their available options, coupled with the economic issues brought about by COVID-19 leave a need that Bitcoin addresses.
100% agreed. My only complain is that there are many other cryptocurrency that do the exact same thing much faster with less fees. https://www.dash.org and https://pivx.org are great examples for this. BTC can still gain against rampant money printing of central bankers. These better altcoins will eventually surpass BTC and might even push BTC out of Top 100 coins by the next decade or so.
It's almost like "survival of the fittest" applies to the digital world. Each iteration of a cryptocurrency evolves based upon the varying needs of the civilization. Hopefully, the coin that benefits society the greatest will prevail.
It reminds me of my readings on our pursuits of nuclear fuel for power production. Uranium was chosen over Thorium as the nuclear fuel of choice solely based on convenience. Scientists merely knew more about uranium than thorium. And they had a practical application of it in Japan.
The cites you referenced show currencies that seem infinitely easier to deal with than Bitcoin. I hope they do well.