Why is the value so different from month to month? So you are saying that 30% or so is lost in the system and can never be recovered? But isn't bitcoin mining a bit like trying to find a private key. I know the odds of finding a private key are astronomical but if someone manages to guess your key, then what? The value will depend on supply and demand. Bitcoin is first to market so to speak but look at the competitors out there. What happens if the demand drops.
Crypto is not an “asset”, it’s more of a bank with no balance sheet, fdic insurance or regulations. It will get smacked as the market doesn’t look to show returns this year it will be the first thing thrown off of the boat by large holders. The only thing that can stabilize crypto is reserves of some kind, ideally US dollars.
99% are just gamblers. Nobody uses BTC for payments. I am sure you even have no clue about the payment system that are used in Europe. I live there so I think I have a better view on that than you. Globalarbtrader mentioned already that less than 2% of businesses accept BTC in the UK, so 98% does not. I also have never seen any proof that Europe is massive investing in BTC for payments. Fake information without any proof. Post from globalarbtrader:The reason bitcoin isn't attractive to professional investors isn't because they're large investors; it's because they're not stupid. There are a significant number of reasons why trading bitcoin makes almost no sense whatsoever. But I know you are far more smarter than Globalarbtrader. That's the typical crypto believer profile. The only thing you are not good at is timing your buy orders. From the 32 orders, 28 are at loss. Only 4 are not losing money.
To me, Bitcoin is no different than any other instrument, chart it and trade it. The U.S. Dollar was once backed by Gold till 1933, it flourishes because of trust. https://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp Tulips was once unbelievably expensive, people paying unheard of sums, 10 years of normal salaries. BTC might be this way as well. I use to love to trade Pork Bellies, T-Bills and Enron, they were all "Hot" markets once, now delisted. So long as there are charts and options, let's make some bucks.
I see it as deflationary as well, but I do also see a flaw in that with a finite amount of any currency, or anything of value, it all ends up eventually in the hands of one entity or a small group. Wouldn't the amount of Bitcoin need to continue to grow to be viable and further the velocity of money?
The supply hasn't been mined yet, so it is definitely growing and will continue to do until the year 2140. That's a lot of time for other people to get in and distribute the wealth, especially at a time like this when Bitcoin is trading at a significant discount to its highest price and pretty much everybody on the planet has heard about it.
Within the last few years, 1,391 Bitcoin ATM machines have been installed in Europe to facilitate Bitcoin payments and transactions. That's a lot of machines so there's obviously a strong demand for the service they provide.
You'll have to pay an exit tax, but this is an excellent QA otherwise. Why does Bitcoin have to be the winner?