okay, a little thread on cryptomarkets and what I think is going on:
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people keep saying this, but what does Bitcoin lose in relation to gold? or BCH in relation to the USD?
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with bitcoin, transaction fees and processing times make it practically speaking unusable as a medium exchange
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theoretically possible for something(s) else to serve as user-facing currency with bitcoin a behind the scenes mechanism for merchants to square books
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but bitcoin is too volatile at present to make something like that sensible to build/use outside of people invested purely in the idea of the thing
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volatility is a direct consequence of lack of liquidity, as it spreads further and traps more resources, its USD price will likely cease to matter for the prices it denominates.
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BCH, being more liquid, is already way more stable than BTC.
End of conversation
New conversation -
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It's not really a currency in the sense of the official money of a state, unit of account, means if final settlement for debts and taxes, etc. Eg the dollar is a currency, but your deposit account, denominated In dollars, although money in the broader sense, is not.
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There's also an imaginable alternative reality in which Bitcoin is the ultimate reserve asset of the banking system, but Bitcoin seems quite unsuitable for this since it's extremely difficult to create new liquidity (by design).
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Bitcoin is the nemesis of the banking system.
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if it's true that some people are using their mortgage money to buy bitcoin, banks are inevitably going to have bitcoin in reserve at some point. whatever its problems, it's way more liquid than houses.
End of conversation
New conversation -
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It's really good capital.
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