Bitcoin supply is capped at 21 million, but the worldwide digital economy will keep growing, so even in the limit after universal adoption, the value of bitcoin continues to rise ~4%/year forever. Right now all the AAA bonds have negative real yields. It's really no contest. All the target retirement funds that hold a fixed % of bonds should be dumping them for bitcoin until the AAA bond yields are at least 4% above inflation. The long term effect of bitcoin will be to place a lower bound on real interest rates.
Stability is a product of the size of the network effect. It's the product of the Keynesian beauty contest rather than a fundamental characteristic of a type of money. Bitcoin is superior to fiat in all the fundamentals, but the market hasn't caught up to that yet. 30 year negative-real-yield bonds will never really be safe, at all. a 5% increase in yields makes them lose 75% of their value.
I believe macro investors Raoul Pal and Dan Tapiero have alluded to this. I'll post the YouTube video if there's interest [edit: not on the effect of the increase in yield, I didn't know that as I don't understand the mechanics of bonds]
Hell, I am bored, so I will just destroy you... 1. Irrelevant since cryptos are not scarce or unique. Also infinite divisibility. 2. This is a HUGE assumption. Since the transaction price is currently $10, nobody in their right mind is using BTC as a payment form. So good luck with the universal adoption when way better cryptos exist. 3.This doesn't follow. You somehow arrived at a conclusion that makes no sense from the premise. Grade: F
If the value of BTC continues to rise, this alone makes it fail as a payment system. It will be too valuable as an investment to use as a currency. If it is not used as a currency, then there is not other use for it hence no value. I see a problem here.
IMO ....... Bitcoin and other cryptocurrencies is a ponzi scheme and will crash to zero. What's the point cryptocurrencies?
Seems like Tsla and btc are catalysts for emotional outbursts that seem so irrelevant for people making money trading.
right. short term, it might rise to 50k, 100k ... long term, it might crash to 10k, 1000, 100, 10 or even <1. BTC supply is limited. But cryptocurrency is of infinite supply. So very long term prospect is extremely good as there might be Tulip Mania #2.