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Will Bitcoin Make a Good Investment?

beth.technology

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Re: Will Bitcoin Make a Good Investment?

#2

Post by xiphias2 »

There's no such thing as secure third-party custody, as the insurance companies (rightly) limit the amount of total insured Bitcoin volume.

For years I heared people talking about how important role institutions play, but luckily so far Bitcoin remained people's money.

Re: Will Bitcoin Make a Good Investment?

#3

Post by pmiller2 »

Not one word here about why BTC should be worth anything at all. Who cares if someone spent time and electricity to mine it?

The USD is, along with every other major, government-backed currency, already an almost 100% digital currency. I don’t see any advantage there. In fact, BTC has the disadvantage of no major government backing it.

If nobody is required to accept it, and I can’t do anything with it otherwise, what good is it?

Re: Will Bitcoin Make a Good Investment?

#4

Post by 2bitencryption »

Once thing I've noticed about Bitcoin is that there are many "alt-coins" that seem to deliver better on Bitcoin's promises from a technical perspective, but those coins are forever stuck in Bitcoin's shadow because BTC has that first-mover advantage. And as a currency, the first-mover advantage is HUGE, because who wants to convert their investments from a hugely popular coin to one that could disappear tomorrow?

So everyone seems stuck -- we agree cryptocurrency can be an amazing idea, and the first version of it is something of a technical (and economic?) miracle, but now we're stuck with the V1 flaws forever (unless the group governing it decides to 'fix' those flaws, but there's another issue, I don't want you messing with how my money works...)

Re: Will Bitcoin Make a Good Investment?

#5

Post by sedeki »

pmiller2 wrote: post #3

Not one word here about why BTC should be worth anything at all. Who cares if someone spent time and electricity to mine it? The USD is, along with every other major, government-backed currency, already an almost 100% digital currency. I don’t see any advantage there. In fact, BTC has the disadvantage of no major government backing it. If nobody is required to accept it, and I can’t do anything with it otherwise, wha…

What exactly does it mean when people say that a currency is backed by a government? ”Backed” to me implies, e.g., redeemable for gold which is clearly not the case for the US dollar. Is it that the government issue bonds denominated in that currency? But that has nothing to do with the money supply per se...?

Please explain.

Re: Will Bitcoin Make a Good Investment?

#7

Post by Lordarminius »

pmiller2 wrote: post #3

Not one word here about why BTC should be worth anything at all. Who cares if someone spent time and electricity to mine it? The USD is, along with every other major, government-backed currency, already an almost 100% digital currency. I don’t see any advantage there. In fact, BTC has the disadvantage of no major government backing it. If nobody is required to accept it, and I can’t do anything with it otherwise, wha…

Wait until there is a crisis and see how 'backed' your currency is.

Re: Will Bitcoin Make a Good Investment?

#8

Post by eugeniub »

2bitencryption wrote: post #4

Once thing I've noticed about Bitcoin is that there are many "alt-coins" that seem to deliver better on Bitcoin's promises from a technical perspective, but those coins are forever stuck in Bitcoin's shadow because BTC has that first-mover advantage. And as a currency, the first-mover advantage is HUGE, because who wants to convert their investments from a hugely popular coin to one that could disappear tomorrow? So…

What first mover advantages does it have exactly? I know many people who have bought bitcoins, but absolutely zero people who use it in their day to day lives.
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