Hmm, I partly agree, only. Wealth or much money does not presume it was honestly earned at all. Hence the bridge you try to build that the concentration of bitcoin in just a few hands is well deserved stands on extremely shaky grounds. The biggest problem is that nobody really knows who owns them. And that leads to the logical next conclusion that anyone with a concentration can corner and manipulate the market and nobody would know where it originated from. That might not be a touchy point for long term holders but it certainly makes it a very suspect instrument for any sort of trading purpose.
How is that different than trading stocks? There are majority shareholders in every stock out there. If they decide to sell at any point, it's going to move the market for that stock... period.
That was not the point I made. I made the point that illegal cornering of markets (which the SEC and CFTC precisely define) can be easily investigated where it originated from. Cornering market and manipulating prices is very different from regular order flow. That is why economics defines monopolies as harmful to free markets and why regulators attempt to prevent them from forming. Not the case with bitcoin or other cryptos. Over 90% is held by less than 1% and 0.01%hold 1/3 of them according to the latest research. You made an assertion that money and wealth =accomplishment and hard work and being deserved. I questioned that given the fact that such can't be proven hence wrongdoing can't be attributed to any individual with anonymous payment means. Anyone who manipulates crypto prices can do so in perfect anonymity. Try that with stocks and you get investigated days or weeks later. Note:I refer to the legal system, I acknowledge that many laws and rules were designed by and favor a certain class that is not properly held accountable.
That may have been the case 5 years ago but not now. All of the major crypto exchanges have implemented KYC processes to ensure that each customer's identity is verified through at least two or three methods. Gemini made me upload my driver's license, passport, and a document such as a utility bill. Same with Coinbase. So if I was doing any shady trading activity on their platforms, I could pretty much be identified instantly.
No. Correct me if I'm wrong, but I think the question you were trying to ask was "What are the characteristics of Bitcoin that would make it valuable in the first place?" Is that a fair assumption?
Yes that is what I'm trying to figure out. Is it scarcity that makes it valuable? If that is so why do I care if it's scarce? There are other crypto currencies (More every day) that perform the same function as bitcoin (An alternate means of exchange that isn't controlled by government) If it's the new gold, an asset that doesn't seem to have an intrinsic value (You need a greater fool, although unlike gold, bitcoin doesn't have other uses) you need to find someone to take it off your hands. It's just hard for me to grasp that anything that I can't see or control has any value. Again I comeback to thin air, I can't see it, I can't touch it, I can't drop it on my foot. How do I value something like that.