Re:What would it take for Bitcoin to fail?
by massung on Sunday December 29, 2024 @12:48PM
(#42541489)
I’m not an expert in this, so hoping someone with more knowledge can chime in/correct anything I get wrong.
I have friends with BTC, but no one I know with any have actually used it for purchasing anything. From what I can tell it’s just a speculative commodity that - due to its constant rise in value - no one wants to just exchange it for a pizza (for example) since tomorrow it might be worth more.
This is why the Fed works hard to always keep a steady inflation. Without it, no one would spend the money they have and the economy would grind to a halt.
BTC is basically a fiat currency with rampant deflation.
Combine that with the knowledge that BTC are limited in quantity, and it’s basically a guessing game as to what happens when the last one is mined. My guess is a lot of speculators (ahead of that moment) start trying to cash out.
I have friends with BTC, but no one I know with any have actually used it for purchasing anything. From what I can tell it’s just a speculative commodity that - due to its constant rise in value - no one wants to just exchange it for a pizza (for example) since tomorrow it might be worth more.
This is why the Fed works hard to always keep a steady inflation. Without it, no one would spend the money they have and the economy would grind to a halt.
BTC is basically a fiat currency with rampant deflation.
Combine that with the knowledge that BTC are limited in quantity, and it’s basically a guessing game as to what happens when the last one is mined. My guess is a lot of speculators (ahead of that moment) start trying to cash out.