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Biggest catch with Bitcoin that nobody ever talks about

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There are several “catches" with Bitcoin that are far too easy to overlook and that nobody ever talks about—which one is the biggest…? It's too difficult to narrow down to just one; the market is just too dynamic. BUT! What are some of the “catches" that are to be of greatest consequence moving forward…? That is much more approachable; in my opinion, I see the following “catches" as fairly substantial:

BTC is a “Cryptocurrency,” &, by implication, is a “Currency.” The problem?—BTC has never been, nor is it likely to ever become a viable Currency.

  • From the outset, BTC came into existence as a response to the 2008–2009 “Great Recession” — specifically, the several rounds of Quantitative Easing that came about (Central Banks began generating large sums of liquidity as debt to fight off a full scale depression). Manipulating the supply of Currency in this way is likely to be inflationary. Well, BTC was a to be a Currency that couldn't be manipulated like that. It spelled out all the rules…the supply, the rate of inflation, scalability relative to adoption, etc. BTC would be a Currency with a fixed rate of inflation and based on its respective rate of adoption. EXCEPT! It functions rather horribly as a Currency—it is slow to move money; it is energy intensive; it is volatile…there's a whole list of reasons why it isn't a Currency; but, at face value, if you're investing your money in something that isn't what it claims to be…for me, that's fairly problematic.

After every “Halvening,” BTC has proven to be a very solid hedge leading up to the following Halvening. The Problem?—There are no more Halvenings.

  • Without that regularity of increase in value based on the mining difficulty and the mining reward, along with the prospect that, at specific times, BTC is likely to increase in value exponentially now gone…it's no longer quite the hedge that it once was! And if it's not a Currency & it's not a solid hedge…what is left…?

Other “Catches" have been discussed, BUT! It's important not to discount them; so:

  • BTC is aggregated into the hands of a small number of large investors—this has a centralizing effect.
  • BTC is no longer able to maintain a high degree of privacy, or anonymity. This is a result of aggregating so much BTC into the hands of a few.
  • BTC trades 24/7/365, BUT! In terms of the underlying liquidity, there are times when BTC becomes inherently vulnerable to price manipulation; hence, price swings, for example, are more likely to occur on the weekends (and in greater magnitude) than price swings than during week.

NEVERTHELESS! BTC has been remarkably resilient and continues to maintain growth. BUT! Investing inherently always involves risk of loss; BTC is no exception. The aforementioned represents merely my opinion and should not be considered financial advice in any way. I’m an individual, on the internet, posting on Quora…seek assistance directly from a Professional Financial Advisor BEFORE Investing.

#OPINIONLEADER#

Edited 09 Jun 2021, 18:15

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