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My current understanding of Bitcoin

My current understanding of Bitcoin

Bitcoin Reddit

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Bitcoin had 3 huge bubbles. They all popped and it ran up in price again and again because of the halfing. The price dropped from 20k to 4k in a year and still it came back because people want a safe place to put their wealth.

Volatility can't be avoided. If we try to keep a company from failing because it's too big to fail then you are simply delaying volatility. Fighting and delaying volatility is only going to result in more volatility. If a company failed to be ready for future disasters then it is supposed to fail when a disaster happens. That's volatility and we have to let it happen. Otherwise no one learns from what happened and when the inevitable next disaster happens the company will fail even worse because now it's being held alive by more money than when the last disaster happened. Volatility is natural.

I don't need to be able to use Bitcoin as a day to day currency. I can use dollar bills and mastercard to pay for my coffee. Blockchain isn't made to replace this. It'll never reach centralized standards. It's there to store value for decades and centuries. There's currently no better way to store value. Even Gold is a worse option with it's 2% inflation and question of storing.

It doesn't matter if bitcoin was designed to be digital cash. It was also designed to be independent deflationary cash. Turns out such cash doesn't need to be transacted or used as a medium of exchange for every exchange we make (as long as governments aren't trying to keep me from spending money in a certain way). It was always going to be used as a store of value. It's just that 10 years ago most people didn't realize it. One transaction to buy the bitcoin and one transaction to sell the bitcoin. That's all you need.

Edit: I wrote this as a comment on a r/economics on a one month old post so I thought I'd post it here.

submitted by /u/aemmeroli
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