0 sats \ 7 replies \ @lipinip235 20 Jul 2022 \ parent \ on: How to convince people Bitcoin/SATs is the future bitcoin
Respectfully, I don't think that's wise. We all have to remember that bitcoin has no real value, nothing palpable backs its current $20000+ valuation. Stocks and bonds on the other side are backed by production, profit and other variables, although it's also arguable that market sentiment plays a huge role on stocks valuation. Finally, if in the end people are gonna exchange their bitcoin savings into actual usable currency (fiat), where's the perk at this point in crypto history?
We all have to remember that bitcoin has no real value, nothing palpable backs its current $20000+ valuation. Stocks and bonds on the other side are backed by production, profit and other variables, although it's also arguable that market sentiment plays a huge role on stocks valuation.
Can you elaborate? Its sounds to me like your making the same mistake that gold bugs do when they evaluate Bitcoin. Bitcoin isn't a stock or bond, its money. So it simply needs properties that can make it the most salable good (aka money).
Finally, if in the end people are gonna exchange their bitcoin savings into actual usable currency (fiat), where's the perk at this point in crypto history?
The perk would be retaining your purchasing power. Fiat is guaranteed to weaken over time. So long as Bitcoin survives and continues to function, people will use it and it will have value. Its okay to spend your Bitcoin. Its money after all. Its just better to defer spending until later when its purchasing power is higher and you really need to buy something. Hopefully by the time you do decide to spend it, you no longer have to convert it to fiat and you can spend it directly. But that's not a necessary condition.
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Sure. First regarding gold, it isn't used anymore to back any currency in the world (as far as I know), so I don't know about comparing gold to bitcoin. Now, bitcoin isn't money, currently it's just a layer above money. The only thing backing bitcoin at this point in time is actually fiat (the dreaded fiat). Currently you can't go to the supermarket and pay your groceries with bitcoin, hence, it's not actual money--- you have to turn bitcoin back to money to be able to use its value. But make no mistake, I really really do wanna see the day when bitcoin becomes actual money!
Regarding purchasing power, you're assuming bitcoin will become a common and widespread currency, which also at this point in time is unknowable. Fiat is guaranteed to weaken over time just as bitcoin is guaranteed to be maybe the most volatile investment right now. However, "Hopefully by the time you do decide to spend it, you no longer have to convert it to fiat and you can spend it directly.", I'm also hoping for that.
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Okay I think see where you're coming from. Correct me if I'm wrong, but you wouldn't consider Bitcoin money until its a store of value, medium of exchange, AND unit of account in a large enough market. In other words, its in the process of becoming money, but its not money yet.
On the future of Bitcoin overtaking fiat, I don't think its absolutely guaranteed. I do think that its more likely than not. Fiat is guaranteed to go down in purchasing power. Bitcoin is currently volatile in purchasing power, but I believe it has a floor due to its network effect and some small portion of the market finding its properties very useful. Eventually, fiat's purchasing power will drop below that floor. All Bitcoin needs to do is survive until then. Its not a given. The US Government could suddenly grow a conscious and brain and abolish the Fed. Bitcoin could fail due to a black swan event. But I think its more likely that Bitcoin makes it. I am literally putting my money on that happening.
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Yep, right on the money (no pun intended), man. Let's hope indeed bitcoin makes it, in the meantime, I guess we can contribute to adoption by paying (or at least trying to) for small amount goods or services locally with sats. One step at a time, bitcoin will have to work its way up if it's ever gonna become a truly useful and decentralized currency.
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How many people would still use fiat if they weren't coerced into it?
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This is so true! We are a historically conditioned people…