Someone please convince me not to buy bitcoin
I have been profitable in long term investing using fundamentals (beating the S&P). That means I've hated bitcoin for a very long time. Recently, I've come across a few things that made me change my mind about bitcoin. The new things I learned addressed what I thought were bitcoin's weaknesses. I'd appreciate if the experts here to poke holes and point out things I havent thought about. Here are the things I've learned, without listing the stuff that most people already know. I'm hoping someone who supports and understands bitcoin very well can throw a wrench in here. The purpose of bitcoin has changed. It will no longer be intended to buy coffees. It could replace settlement system between the different reserve systems and their banks. This makes sense when I think about how it can take weeks for a transaction to settle when sending (and/or converting) fiat money to another country, because there are many intermediaries and there is risk between every intermediary. This means large, and fewer transactions onto the blockchain, with the lightning network filling in the role between a retail bank and its customers. Power consumption - Mining operations are using only excess capacity electricity. That means new energy projects can be supported by miners until the energy producer has enough non-mining customers to drive up the energy cost. Mining operations are only using electricity that would otherwise be wasted or dissipated. No government will ever create a digitial coin that can be trusted by people, because the the entire purpose of fiat is for the government to be the sole owner of the money printer. If a government were to clone bitcoin and then officially sanction it as their hard currency, I could kind of see how that official support might create a real competitor, but I am not convinced a government would ever do this, and I am not sure how the government can convince people to adopt it over bitcoin. No other digital coin is likely to replace bitcoin because no other new coin can have 2 decades of proof of work to wield as authority. submitted by /u/meteoraln [link] [comments]
I have been profitable in long term investing using fundamentals (beating the S&P). That means I've hated bitcoin for a very long time. Recently, I've come across a few things that made me change my mind about bitcoin. The new things I learned addressed what I thought were bitcoin's weaknesses. I'd appreciate if the experts here to poke holes and point out things I havent thought about. Here are the things I've learned, without listing the stuff that most people already know. I'm hoping someone who supports and understands bitcoin very well can throw a wrench in here.
The purpose of bitcoin has changed. It will no longer be intended to buy coffees. It could replace settlement system between the different reserve systems and their banks. This makes sense when I think about how it can take weeks for a transaction to settle when sending (and/or converting) fiat money to another country, because there are many intermediaries and there is risk between every intermediary. This means large, and fewer transactions onto the blockchain, with the lightning network filling in the role between a retail bank and its customers.
Power consumption - Mining operations are using only excess capacity electricity. That means new energy projects can be supported by miners until the energy producer has enough non-mining customers to drive up the energy cost. Mining operations are only using electricity that would otherwise be wasted or dissipated.
No government will ever create a digitial coin that can be trusted by people, because the the entire purpose of fiat is for the government to be the sole owner of the money printer. If a government were to clone bitcoin and then officially sanction it as their hard currency, I could kind of see how that official support might create a real competitor, but I am not convinced a government would ever do this, and I am not sure how the government can convince people to adopt it over bitcoin.
No other digital coin is likely to replace bitcoin because no other new coin can have 2 decades of proof of work to wield as authority.
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