If it was set up as a currency, it was set up entirely wrong. There is a capped amount of bitcoin, and over time bitcoin will dissapear. That means a smaller supply will represent equal value (well not really, since it isn’t backed by anything), meaning it’s deflationary.
Deflationary assets are by definitions bad currency and great investments.
While it is true that Bitcoin is bad at being a currency, it was definitely intended to be one from the beginning. The people who created it and early adopters had weird libertarian beliefs about currency and intrinsic value. Bitcoin was supposed to be like a digital version of the gold standard rather than a modern fiat currency. Of course, this has a lot of problems and there is a reason nobody uses the gold standard anymore, but these people did actually intend for it to be a currency. The whole thing is designed around the ideological belief that scarcity and work are what create value, and that value derived from these is intrinsic. It’s kind of hard to grasp if you’re not immersed in the weird online libertarian culture that created and adopted Bitcoin early on but these are things that people very sincerely believe, although these days most crypto people aren’t into that idea anymore and you see it among people who buy gold and silver
Infinitely divisible deflationary assets can be used as currency and savings, if enough large markets like grocers, Walmart, Amazon, etc accepted it as payment the price would stabilize against speculative investment like trading in foreign currency. Right now I think it’s overinflated from speculative investment, but the cryptography is secure and public ledger is an improvement I think.
What? That’s completely wrong.
If it was set up as a currency, it was set up entirely wrong. There is a capped amount of bitcoin, and over time bitcoin will dissapear. That means a smaller supply will represent equal value (well not really, since it isn’t backed by anything), meaning it’s deflationary.
Deflationary assets are by definitions bad currency and great investments.
While it is true that Bitcoin is bad at being a currency, it was definitely intended to be one from the beginning. The people who created it and early adopters had weird libertarian beliefs about currency and intrinsic value. Bitcoin was supposed to be like a digital version of the gold standard rather than a modern fiat currency. Of course, this has a lot of problems and there is a reason nobody uses the gold standard anymore, but these people did actually intend for it to be a currency. The whole thing is designed around the ideological belief that scarcity and work are what create value, and that value derived from these is intrinsic. It’s kind of hard to grasp if you’re not immersed in the weird online libertarian culture that created and adopted Bitcoin early on but these are things that people very sincerely believe, although these days most crypto people aren’t into that idea anymore and you see it among people who buy gold and silver
Infinitely divisible deflationary assets can be used as currency and savings, if enough large markets like grocers, Walmart, Amazon, etc accepted it as payment the price would stabilize against speculative investment like trading in foreign currency. Right now I think it’s overinflated from speculative investment, but the cryptography is secure and public ledger is an improvement I think.