Re:Cryptonomicon: Among the Bitcoin maximalists
by ephbit on Friday February 25, 2022 @05:05PM
(#30472912)
Agree.
Many people critize bitcoin for its current volatility and entirely neglect that it can totally change in the long-term.
It appears reasonable to me to expect the system dynamic along a pathway towards (possibly) wide adoption to go through various changes. Yes there are probably phases of hype and there's the influence of block reward halvings but there can also be effects in the long-term that stabilize: the more widespread and integrated in various parts of finance and the economy and actual day to day transactions or people's savings bitcoin were to become the more it would dampen volatility.
Why that? Because unlike purely speculative financial transactions, day to day transactions are very much restricted and influenced by and thus coupled to rather constant human needs, so a lot less volatile than the former.
Now don't get me wrong. I know bitcoin can't directly be used to replace cash because of settlement time and transaction fees. But that's why protocols on top like Lightning exist.
Many people critize bitcoin for its current volatility and entirely neglect that it can totally change in the long-term.
It appears reasonable to me to expect the system dynamic along a pathway towards (possibly) wide adoption to go through various changes. Yes there are probably phases of hype and there's the influence of block reward halvings but there can also be effects in the long-term that stabilize: the more widespread and integrated in various parts of finance and the economy and actual day to day transactions or people's savings bitcoin were to become the more it would dampen volatility.
Why that? Because unlike purely speculative financial transactions, day to day transactions are very much restricted and influenced by and thus coupled to rather constant human needs, so a lot less volatile than the former.
Now don't get me wrong. I know bitcoin can't directly be used to replace cash because of settlement time and transaction fees. But that's why protocols on top like Lightning exist.