full image - Repost: Help me understand. (from Reddit.com, Help me understand.)
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Bitcoin is currently sitting around $69,000, and to me, it doesn't make much sense. Here are my thoughts:Volatility vs. Stability: They say Bitcoin is a store of value, but it's incredibly volatile. Gold, which Bitcoin is often compared to, remains relatively stable.Correlation with the Stock Market: Bitcoin was touted as a hedge against central banks and inflation. However, whenever the S&P 500 takes a huge nosedive, Bitcoin goes along with it. This shows that Bitcoin is not separate from the stock market; it's correlated. The current price of Bitcoin seems to be driven by central bank inflation and money printing.Bitcoin ETFs: BTC ETFs were celebrated as a huge win, but wasn’t the whole point of Bitcoin to be independent and decentralized?Centralization and KYC/AML: To buy or sell Bitcoin, you need to use KYC (Know Your Customer) and AML (Anti-Money Laundering) processes, which defeats the purpose of a decentralized system. Meanwhile, the true privacy coin, Monero, isn't even discussed.Practical Usability: Bitcoin was supposed to facilitate peer-to-peer transactions, circumventing credit and debit cards. However, nobody actually uses Bitcoin for transactions because everyone just wants to hold it to make money.Fraud and Errors: Fraud and errors are huge issues. People lose their keys, wallets, or send Bitcoin to the wrong address, and it's gone forever. While owning your own Bitcoin is appealing, it's unrealistic to think that someone like grandma in Bentonville, Arkansas, or Vishnu in rural Pakistan, where stable internet and electricity are scarce, will start using a digital wallet.Lack of Successful Projects: I’ve never seen a blockchain or crypto project actually do what it’s intended to do. They usually end up being all hype and then fail. People point to smart contracts in Ethereum, but often, people sign these contracts and end up getting their wallets drained because not everyone is a software developer who can read the code.Speculation and Price Predictions: I read the BTC subreddit, and they're all saying Bitcoin will go to $90k, $100k, or even $250k before a small crash. While I don't think it's completely out of the question, for Bitcoin to hit those numbers, the stock market needs to do well alongside it. Otherwise, the S&P 500 going down will take Bitcoin with it.Wealth Distribution: The distribution of Bitcoin wealth is highly concentrated. The top 8% of addresses own the majority of Bitcoin, making its wealth distribution more dystopian than the USD. Here's a chart illustrating this: Bitcoin Distribution ChartInitial Focus on Online Poker: It's also worth noting that the original Bitcoin code was focused on facilitating online poker rather than creating a global financial system. This early focus seems disconnected from the current narrative of Bitcoin as a revolutionary financial technology.Technological Obsolescence: Technology evolves rapidly. Bitcoin, being one of the first cryptocurrencies, might be outpaced by more advanced and efficient alternatives. Is it wise to invest heavily in a technology that could become obsolete?True Market Cap: People tout the market cap of Bitcoin as being around $1.4 trillion; however, this market cap is based on its current price. If everyone were to sell out, the majority of people would be left with nothing. As someone sells, there needs to be a buyer, but if everyone sold, it would drop to zero. Essentially, there isn't any true "money" sitting in it.The Argument of the USD: While I do believe the USD has its issues, the USD is backed by the might of the US Military, the largest military in the world. The USD will exist as long as the USA does, and the US will exist as long as the US Military does. With the power of the US being the cradle of innovation, defense, and power, I don't see that going away anytime soon. Sure, it will be more centralized and people will have more wealth disparity, but it doesn't mean it will go away. There are no more physical lands to be discovered, and no way a group of talented people can revolutionize and make a new country somewhere.I know this is an anti-Bitcoin sub, but I just really don't understand the use case of Bitcoin or the hype around it. I haven't owned or bought any Bitcoin, but I know people who have, and they keep telling me how it will change the world. I'm doing my due diligence and still find these issues troubling.Would love to hear your thoughts and understand more about this.
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