Seeing that I've gotten many negative votes on my last post about the ETF Destroying Bitcoin, I thought "Hey, maybe I'm doing something right" and thought I'd project the message out a little.
Because for some reason a Bitcoin ETF seems like a legitimate investment, when it's really betting on the price of a digital coin, without actually owning the coin. It's complete speculation on something that literally isn't real and tangible.
But that aside, I do see some hope in Bitcoin's price rising to heights never seen before, and it coincides with the death of the dollar.
See, many people know that the dollar has no real value other than government force and legal tender laws, however not enough yet to really hit our supply chain.
Much of our materials and products are imported from other countries, which means that it takes Oil, and it takes countries that are willing to accept our paper currencies. That's becoming less and less over time, albeit slowly, though it will pick up as more countries switch over to the Yuan, one-belt one road, unified currency system.
When demand drops for the US dollar, and IF the crypto-bubble hasn't popped yet or stabilized at a certain price, then once inflation skyrockets, people will begin to put their wealth:
- Into food and fuel, which either degrades or gets consumed.
- Into medicine and first-aid.
- Into precious metals, whose supply could be heavily strained once this happens
- Into cryptocurrency.
The problem with stashing your wealth into Bitcoin and Litecoin is among the reasons you've heard before:
- Reliance on Power, which you have to pay for in USD and hope the weather doesn't get bad.
- Reliance on the Internet, which you have to pay for in USD and hope no firewall is made like the one in China.
- Transaction fees, which could destroy a large amount of your wealth on every transaction. As I've said before too, much of these fees go right over to China, so every time you order some pizza with Bitcoin, you're saying "Hey 1984 technocracy, take my money!"
- Unknown value. Since Cryptocurrencies aren't tied to any real world item that we use for things in our society, perhaps you can get away with tying one of my totally awesome AtherCoins to a service. If you pay me 1 AtherCoin I'll give you a random DVD (so henceforth, the value of an AtherCoin is the value of 1 random DVD). However with Bitcoin, the value is
[[the value of the blockchain]]
...........which is free and open source.
Oh but Bitcoin is the first and post popular?
Yeah, but what if governments after the fall of fiat create their own cryptocurrency and outlaw Bitcoin? Would you still use it, knowing that the NSA tracks every transaction? I'd imagine as well that Monero could get cracked one day, revealing every single transaction ever on that chain.
Oh but Bitcoin is the digital gold of the new age?
So what happens if OneGram, BullionCoin, Hayek, or Digix become mainstream? You'll have crypto that you can convert into gold, and then you'll have Bitcoin that you can buy and sell and that's it. Maybe hook up an application to it, but wouldn't you rather use DigiByte, or NEO?
So maybe you'll get a spike when the dollar dies. It could go up, and then people find out about the better coins and cash into those, or cash into the dreaded FedCoin. Governments are already making moves towards having national cryptocurrencies, like Iran. A government-backed crypto could be legal tender, able to be used at grocery stores. That's not going to happen with Bitcoin, so I don't see Bitcoin staying high forever.
A Bitcoin that's NOT legal tender to be used at grocery stores, and a Bitcoin that's NOT legal but totally trackable?
You've killed the market, and the black market for it.