This article by Market Watch, goes through 7 questions we need to answer. Here are my answers:
Besides being deflationary in the long term, bitcoin has many different use cases. One of the use cases right now (in the US), is being a form of digital gold. Gold does not provide interest either. Why own gold?
Bitcoin serves a global economy. In countries like Venezuela and Greece, inflation rates are much much higher than 2.2%...
Hopefully, we will find out. Bitcoin has many use cases. Some will find value in holding it. Others, in using it to access other blockchain assets. I don’t see how this is a flaw in the ecosystem
I worked briefly on a project that helped bring bitcoin to the unbanked. Fact is, many parts of the world now have access to a cell phone with connection before consistent clean drinking water and food. Also, a cell phone is much cheaper than a single transaction cost of sending traditional money to these regions.
People aren’t frustrated. It’s a problem to solve. And if we can solve it, the ecosystem and value will continue to grow.
Same “argument” was used against the internet in the early days. “Terrorists will use it to communicate anonymously.” Not a valid concern. The US dollar is used far more frequently. And the benefits of cheap remittances, secure, programmable money, control of one’s assets, free from inflation, etc. is much more valuable. Again, similar to the internet.
Remittances are a 580+ billion dollar market continuing to grow. To send traditional money to certain regions, it costs the poor anywhere from 10-40% in fees. Bitcoin serves a global economy, not just the US.
Banks are trying to implement blockchain. Ripple is a successful company serving the banking industry. But all-in-all, creating an internal blockchain is almost purposeless. It eliminates the added security and decentralization. The whole point of blockchain is that it’s a distributed network. Why would people opt in to a system which remains controlled by a monopoly of banks who shouldn’t be trusted, vs a distributed network which is secure and trustless.
This was originally a quick comment I made in reply to someone's post. I have been bitcoin / blockchain for several years gathering knowledge, writing code and investing. I have recently decided to start being more vocal online. (Have always been vocal in person :).
Lastly, here is a picture of Vitalik Buterin. He is clearly an advisor on this post.
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