What you’ve done here is offer a detailed technical explanation and then thrown in something about deflating a debt bubble, without actually connecting them.
I’m all for the technology, but the technology itself doesn’t solve any systemic financial issues, not directly. It’s the adoption itself, and how it may be used for legit commerce, say 5-10 years down the road, that would potentially do so. And this would be facilitated by technology evolution from now until then. Bitcoin may be at the center of that evolution, but it’s not assured just yet.
People are buying or holding on speculation for various reasons but most with a common speculation: They believe that the price will continue to rise relative to their cost basis. That’s it. Some of these folks have a fundamental belief about bitcoin’s future as a currency, but that future isn’t enabled directly by the technical details that you’ve offered. Most newcomers don’t care about the revolution, they’re just trying to hop aboard a rocket ship.
You have a solid understanding of bitcoin’s technical details. Just pointing out that such details don’t directly solve any economic / debt related issues, for many reasons. One of its key limitations is that the technology of bitcoin cannot facilitate commerce at scale, not currently.
Price of bitcoin will go up or down directly as a result of decisions of buyers and sellers, nothing less or more. Greater fools applies to bitcoin just the same as other open markets.
Fixed assets, goods and services, etc., are stable relative to fiat, at least USD. So bitcon isn’t deflating any bubbles.