Bitcoin is like a decentralized banking system with no controls at all against a systemic bank run. No FDIC or Fed.
It has been small enough that a single Billionaire could bail it out when it got into trouble.
Once you hit the point where it'd take > $10B's to bail out Bitcoin it is going to unwind eventually in a bank run/panic.
This time is not different, and those who fail to understand the past are doomed to repeat it.
And its driven at this point by greed and "number go up".
And the reason why people like it is that they put $10 USD fiat in one day and draw out $100 USD fiat some time down the road, and its that ability to extract fiat from it that it is tied to. It isn't any kind of alternative. Everyone watches how much it climbs in USD denominated terms. Nobody remembers "1 BTC = 1 BTC" even as a joke any more.
Bitcoin is also extremely easy for the vast majority of the population to quit. You don't need it to buy groceries, you don't need it to pay your mortgage or your taxes. When the supply of $USD in the system goes to zero and the price collapses from a large enough height, there will not be any floor to it.
It has been small enough that a single Billionaire could bail it out when it got into trouble.
Once you hit the point where it'd take > $10B's to bail out Bitcoin it is going to unwind eventually in a bank run/panic.
This time is not different, and those who fail to understand the past are doomed to repeat it.
And its driven at this point by greed and "number go up".
And the reason why people like it is that they put $10 USD fiat in one day and draw out $100 USD fiat some time down the road, and its that ability to extract fiat from it that it is tied to. It isn't any kind of alternative. Everyone watches how much it climbs in USD denominated terms. Nobody remembers "1 BTC = 1 BTC" even as a joke any more.
Bitcoin is also extremely easy for the vast majority of the population to quit. You don't need it to buy groceries, you don't need it to pay your mortgage or your taxes. When the supply of $USD in the system goes to zero and the price collapses from a large enough height, there will not be any floor to it.