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0 sats \ 2 replies \ @downtownjj 4 Feb 2023 \ on: Bitcoin's volatility as an extension of human psychology and measure of success bitcoin
i find myself coming to the conclusion that some sort of 'hyperbitcoinization' while not yet inevitable, has become entirely likley. while the prospects of this are more than exciting...i have dampered my unbridled enthuasiam after further consideration about the chaos that would ensue as a result of this. lots and lots of people are gonna get killed (both literally and figuratively) if and when this happens.
Also, semi-related, i have noticed the media, governments and fudsters trying to kneecap adoption. i used to think this was a problem, but i started to believe that this may be a bit of a blessing. the LN is not fully ready to be a universal payments layer and the base layer is not very scalable. growing too fast could break shit and lead to a huge setback. every attack vector against bitcoin that does not succeed makes bitcoin stronger and i wonder if too much success, too fast, could prove to be a bad thing.
Overall i think you did a good job explaining why volitility is a good thing, and I agree completely
media, governments and fudsters trying to kneecap adoption
Yet bitcoin persists. I find it entertaining, if nothing else, seeing how nearly every argument they come up with can be countered rationally.
- Bitcoin mining takes too much energy?
Truth: Bitcoin helps subsidize green/renewable energy, and elsewhere mitigates problems with flaring (or worse, venting) of waste gas. Bitcoin is a net gain. - Bitcoin is slow.
Truth: Lightning is fast, and incredible cheap to use. - Bitcoin is volatile.
Truth: Well, they got us on that one. Your $10 worth of bitcoin bought a a little over a month ago is worth $14 today. Who in this world wants that?
But seriously, not everyone can (or wants to) stomach the opposite of the above happening (where bitcoin drops in value 40% in a month). They want to use bitcoin to pay their landlord or whatever, and do not want exposure to the exchange rate risk that comes from holding bitcoin.
But there are solutions for that. Valet's LN wallet (by Anton Gushcha) which uses StableSats synthetic USD. Or Kollider's LN wallet. Or bitcoin can be swapped from bitcoin to Tether USD on Liquid network, for example.
These are convenient and very low-cost methods to swap in to (and out of) fiat equivalents, for those who want (or need) to purchasing power protection for some (or all) of their savings.
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we think it's good that adoption isn't incredibly fast - and so far it has still been at a very fast, yet reasonable pace. This way it only attracts the smartest most independent thinkers first
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