I'm new to the crypto-community, though I've been casually following Bitcoin since watching "Banking on Bitcoin" around Dec. of 2018. At that time, all my accounting professor would talk about is blockchain technology, though I first heard about it in high school.
I want to preface with the fact that I think in the long-term, there will be shifting demand for a de-centralized currency.
However, it seems the bitcoin community (r/Bitcoin) has a cult-like obsession with HODLing no matter what. I have nothing against HODLers or purists, and if people can stomach the volatility, as long they don't buy high and sell low, then good for them. But the idea of HODLing is a little counter-intuitive to me. If they hold at all costs, is this in anticipation of using Satoshis as currency? Or do they actually just plan on cashing out into USD and using their earnings? Even the official whitepaper for bitcoin on Bitcoin.org
has the title "Peer-to-Peer Electronic Cash System". We'd be naïve to say that HODLers are using it for its intended purpose, and instead as an investment vehicle, or like digital gold.
Further, Bitcoin has a high correlation with the S&P 500, yet it's supposedly supposed to be cash. It's not an equity, not cash, not gold.
The following are my concerns:
Environmental sustainability/Scalability of
- Bitcoin is notorious for using lots of energy. While a shift towards renewable resources will help, it seems bitcoin is inefficient when compared to VISA or even Ethereum. https://www.bbc.com/news/technology-48853230
What I think bitcoin promises: a universal, de-centralized currency.
However, there are regulatory concerns, such as money-laundering.
Is a deflationary currency one we really want?
I have my hardware wallet, I'm interested in de-centralized currency, but especially with the echos of previous rallies (and crashes) with bitcoin, I still remain skeptical. (Even with the institutional investment).
For instance, the market-cap has surpassed VISA, yet VISA is much more widely used.
In closing, I guess my message is for the crypto-currency, specifically Bitcoin enthusiasts to consider other crypto-currency as viable. Clearly, bitcoin has some utility, but as cash, I remain a little skeptical (unless it's satoshis).
I think that to dismiss other cryptocurrencies/altcoins as "shitcoins" is short-sighted.
My questions:
Aside from Bitcoin's supply being established as finite, can its scalability problems be solved?
So long as it has a finite supply, is it actually possible for it to be used as currency? Or will people HODL indefinitely, causing deflation and economic stagnation. (Of course the infinite supply of USD is not ideal, but perhaps the Bitcoin community hasn't even heard of John Keynes!)
Most importantly, is there an alternative crypto-currency that is more scalable, practical, etc.?
(Now I'm an accountant, not a scientist, economist, or computer scientist, so I'd appreciate any corrections if I make any inaccurate claims!)
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source https://www.reddit.com/r/btc/comments/kr9y8e/bitcoin_cult/
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