RE: Bitcoin Trend Series / EP. 553 / Crypto isn't in a Bubble / Steem Bounty Reward
The issue with Bitcoin is that it isn't really tied to anything except criminals and investors (basically the same thing). Think of any other currency (USD, Euro, Franks, Pounds, etc.) and you notice how they are all tied to a country, and its economy (which runs off it), and are backed up by that countries bank.
Bitcoin, however, isn't tied to anything really. It doesn't seem to be that popular as an online payment system (I'd rather use a credit card, thanks) except for on the silk road, where its used to buy crystal meth. But any chance of the price being determined by how well the illegal drugs economy is going, is pushed out because of investors – who pushed the price up at first and have now pulled it down again.
As such, it doesn't work as a digital currency.
So I think this is not really accurate.
First of the Nr. 1 use case for bitcoin is certainly none of the illegal things you outlined but simply speculation.
Every day 5-20B is transacted this way. Do you think that many drugs are being bought with bitcoin? Then there are many that are storing and transacting wealth this way. This is certainly also not illegal, even though it may undermine the current financial system.
People always say that bitcoin is used for nefarious things, but there is never any data or proof suggesting this actually. It seems to me there is much greater utility in other things where it is used. But these things take time to develop, because of the lacking infrastructure. The thing is if I had a choice to use crypto over any other currency I would not even think about it. But it is simply not possible today. I think however over time this will slowly change.
The main reason why bitcoin is not a real currency however is because of its fluctuation, so in a way you may be right and bitcoin cannot be currency.
It's a good point. Is Bitcoin really a currency? At present no, not really. Will it be in the future? Who knows......
Fiat currencies can and are manipulated by governments.
The global market in drugs trade is valued at about half a trillion dollars by the UN, so it's reasonable to assume that the bulk of trade is still carried out in cash which is virtually untraceable vs bitcoin where transactions are available for everyone to see
You also have to remember that bitcoin and the crypto market in general is very immature in comparison to forex trading, equities and pretty much any other financial market out there so at present it is much easier to manipulate
Bitcoin transactions are pretty much untracable, and even if they are – the criminals are moving towards superior coins (e.g. Monero), in that (sure they say a transaction took place) they don't say who actually did the transacting.
And I guess there in lies one of the challenges of the regulations mentioned in the OP. I guess it’s the same as any kind of data protection or personal freedom argument. What, if anything, are you as an individual willing to give up for the supposed good of society?
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