The problem is people buy but rarely actually use bitcoin. This means the price collapses whenever a major holder tries to cash in.
The basic math is you only get a net ROI across all users when someone derives some value from the act of using bitcoin. As a currency that’s either from efficient transactions or as a stable store of value. Otherwise it’s an inefficient pyramid scheme where case inflows = cash outflows - mining costs.
PS: By contrast bonds can retain a high percentage of their value after a massive sale because they become more appealing as the price drops as they have some underlying value.
The basic math is you only get a net ROI across all users when someone derives some value from the act of using bitcoin. As a currency that’s either from efficient transactions or as a stable store of value. Otherwise it’s an inefficient pyramid scheme where case inflows = cash outflows - mining costs.
PS: By contrast bonds can retain a high percentage of their value after a massive sale because they become more appealing as the price drops as they have some underlying value.