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    Genuine Question From a Bitcoin Skeptic

    I am a bit skeptical naturally and currently do not own any Bitcoin, but I am trying to understand the strongest version of the pro-Bitcoin argument rather than a strawman.

    Here are a few of my questions:

    1. Is the idea still that Bitcoin will become a currency to compete with dollars, euros, and other fiat currency? Or is the idea that your Bitcoin will be later sold for more fiat than you purchased it for? I'm still trying to understand the exit strategy.

    2. If Bitcoin is to become money, how will it overcome the volatility that we see presently? How will the project turn the corner and show more short-term price stability to be used as an everyday medium of exchange?

    3. At this point, there seems to be a recognition vs adoption gap. Bitcoin is globally recognized and it is very easy to purchase with more major financial institutions offering exposure. Is there a worry that demand has plateaued, or will plateau in the future causing a plateauing price?

    Thank you for your patience and I am sorry if these are very frequently asked questions.

    Genuine Question From a Bitcoin Skeptic
    byu/RealHumanomics inBitcoin



    Posted by RealHumanomics

    5 Comments

    1. Successful_Safe_1440 on

      It’s not about any of that. As far as I can tell it’s about 2 things : electricity and leverage. The compute that it requires to create or ‘mine’ the btc is massive and requires specialized equipment that costs thousands of dollars. The token price of the coin is like a measurement of how much electricity humans are spending towards this effort of discovering the total supply.
      As for the leverage that I mentioned: the cheaper you can buy btc, the more money you make when it hits 100k the next time. That is leverage. I am not suggesting it is ‘to become money’ but it is one of the largest financial assets by market cap and it is highly liquid and 24 hour.

    2. BlyG on

      You’re asking about the exit strategy like Bitcoin is a trade… some of us think it’s the exit.

    3. beefcake105 on

      I’m not an expert on the matter but I will say this, ever since its creation, it has only gone up in value. The CAGR is unarguably great. There can be a lot of debate moving forward but what are you willing to risk, holding or not?

    4. bitcoinphilosophy on

      >Is the idea still that Bitcoin will become a currency to compete with dollars, euros, and other fiat currency? Or is the idea that your Bitcoin will be later sold for more fiat than you purchased it for? I’m still trying to understand the exit strategy.

      Do you consider those currencies to be in competition with each other? Some investors definitely are just looking for a fiat price to sell it at. Others are hoping more merchants adopt it, so they can purchase goods and services directly in it.

      >If Bitcoin is to become money, how will it overcome the volatility that we see presently? How will the project turn the corner and show more short-term price stability to be used as an everyday medium of exchange?

      If Bitcoin *becomes* money as you say, what does that imply about the future state of money? How many people will really care what Bitcoin’s value is in terms of a dead currency? People will be more concerned about the amount of real commodities they can buy with it. Bitcoin’s stability can’t be measured in something that is inherently unstable like fiat.

      >At this point, there seems to be a recognition vs adoption gap. Bitcoin is globally recognized and it is very easy to purchase with more major financial institutions offering exposure. Is there a worry that demand has plateaued, or will plateau in the future causing a plateauing price?

      Even in the unlikely event adoption plateaus, inflation will cause the fiat value you are focused on to go up. And since the dollar is debt-based, inflation is inevitable.

    5. herkdwrlmal on

      1. Honestly, I don’t think so. But possibly. I think transactions with will rise (probably an app or two away from something for masses), but ultimately it is a permission-less store and transfer of value without banks and anywhere in the world. Many will say you won’t need to sell it because it IS the money that can be spent later, again maybe, but I don’t see that. But countries can use to bypass others using.👀

      2. It already is money technically, as vendors accept it, etc.🤷🏻 But the volatility is in a market that’s still developing as well. It’s relatively so young. But as the regulatory framework starts to come in, institutional money and retail alike, I’d think would see a more gradual rise over time and less insane highs so quickly. Ultimately I think it will become a store of value over time.

      3. I dont think plateaued at all. It’s so small relative to trillions in global money supply. Bitcoin has first mover advantage, though something might technically be better for its original use purpose of permissionless peer to peer money, Bitcoin has cemented as the gateway into the digital currency age and I think, essentially long term, it will go up forever.

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