> It makes no sense to me how bitcoin is still number one cryptocurrency despite it's garbage fundamentals. Failed at everything it was supposed to do.
It hasn't failed at not being controlled by people which fiat currencies have failed completely. Do you control the inflation rate? Do you control how much currency is being minted? And tons of other things.
> Do you control the inflation rate? Do you control how much currency is being minted?
Exchanges are essentially banks. They offer bitcoin loans, essentially creating new coins out of nowhere. Fixed money supply is utterly powerless before the inflationary power of debt.
Like a marshland for tidal water, stock is best inflation hedge working by sponging the overflowing inflational liquidity, and no wonder that Bitcoin behave similarly.
> stock is best inflation hedge working by sponging the overflowing inflational liquidity, and no wonder that Bitcoin behave similarly
Agree on the mechanics. Equities are a classic inflation hedge. But the reality is that if three people, in the last year, attempted an inflation hedge, one with TIPs or Series I bonds; one with equities; and one with Bitcoin, the last gained little over the middle. Both likely lost value relative to the first.
If your inflation hedge loses value during inflation because the Fed will raise interest rates because of inflation, yes, there were external factors at play, but no, they’re not to blame, you hedged badly.
I disagree with your assessment that Bitcoin is worthless:
1. Can't get any better for money laundering, just add a sprinkle of Tornado Cash or whatever your favorite tumbler is today.
2. Great speculation token on a par with gambling. Gambling is not illegal as far as I know in the US. It started in Indian reservation but became legit quickly when they cut a deal with each single state (so they can collect taxes)
3. Greatest Ponzi scheme ever. Same with other currencies. Get in early, make a fortune. Get in late, get screwed.
4. Very aspirational. Millions of suckers hate their government and were ripe to gobble up anything that would get them out of their not so exciting future.
5. Unleashed a massive amount of creativity. Just sign up to the top Crypto "thought leaders" on Twitter. Unlimited entertaining.
6. Petty crime and gangs move over, we are in a whole other league here. Rug pulls, scams,...It is just a matter of time before Crypto Bros will face a handgun in the mouth. Hand me the magic keys or we'll cut your kids fingers.
7. Plenty more to come.
(edited spelling)
> Do you control the inflation rate? Do you control how much currency is being minted?
If you're living in a democracy, you do get a say in those things or at least in selecting the people who decide those things, along with all the other voters.
It hasn't failed at not being controlled by people which fiat currencies have failed completely. Do you control the inflation rate? Do you control how much currency is being minted? And tons of other things.