RE: Attractive Bitcoin Opportunity Over Altcoins

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Attractive Bitcoin Opportunity Over Altcoins

in bitcoin •  7 years ago 

That's a lot of questions, so forgive me if I don't respond to all of them. It doesn't really surprise me too much - Bitcoin was as small as those altcoins at one point and while there have been attacks, it has successfully survived. It relies on the economic principles behind game theory, which is interesting seeing them in practice.

I am not qualified to say if other technologies are strictly superior to Bitcoin. What I can say in a simplified sense is that generally nothing is as it sounds (e.g: white papers tend to overexaggerate the possibilities). Once we get into more practical applications, it will be easier to say what is or isn't superior. There are plenty of times where the technologically superior option has lost out to ease of use, better UI, and a number of other factors.

Fair value is impossible to determine accurately, but I'll likely be estimating a range for Bitcoin at some point and then based off that, you could theoretically calculate a range for the cryptocurrency market as a whole after using a certain dominance level for Bitcoin.

My response to such critics is you're generally right. Most people clearly don't care about privacy given that most people don't use private browsers, they use Facebook and Google, they give away their information to unknown websites just for a free PDF, etc. Most people do want consumer protections in place as you mention (an intermediary for dispute).

Lack of inflation is overexaggerated too for a number reasons, some of which you mentioned and some of which you left out (e.g: interest rates generally offset inflation rises too). I never cared for doomsday resource just because likely only food or water will matter then.

There are use cases we haven't imagined yet though. Just this platform (Steemit) illustrates that possibly something awesome can be created with magical internet money (I say possibly because it depends on people investing in the platform and on less rampant abuse, both factors which I question if 1) we see altcoins crash and 2) we don't see more automated ways to prevent abuse).

Even if we just look at the peer-to-peer transaction currencies, there are three major use cases

  1. Remittances
  2. Microtransactions
  3. Payment Solutions

Obviously we really aren't close to #2 or #3 yet, but that's the point of innovation. I'm more interested in what Bitcoin will look like in 20 years if I'm being honest, assuming it survives (which is likely going to depend on how gridlocked it becomes due to decentralization).

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Thanks for taking the time to respond with your detailed and honest answers. I find your videos very interesting, even though I don't trade crypto.

Obviously we really aren't close to #2 or #3 yet,

Even if we were at that stage, why would they be superior to equivalent fiat services? I don't see the "value-add" of using crypto over fiat for those cases.

After I wrote my questions, I actually found a more eloquent critique of crypto use cases: https://hackernoon.com/ten-years-in-nobody-has-come-up-with-a-use-case-for-blockchain-ee98c180100