What I have realised studying and observing Bitcoin is that people have put their belief behind Bitcoins, like they put their belief behind any other religion. Satoshi Nakamoto is the saviour we all were waiting for. He would save us from the evil corporations and corrupt governments.
Bitcoin was introduced to the world with the concept of self governance. Their is no central body that controls the decisions about Bitcoins. But the people will collectively decide the future based on the consensus between them.
With so many stake holders, it becomes very difficult to artificially create or destroy demand for the Bitcoins. It can happen for a locally or a short period of time in the following cases:
Any bitcoin exchange with small trading volume gets a high sell/buy order
Early Bitcoin hodlers or investors, start pumping or dumping the market
There is rumour about Bitcoin declared illegal
The effect of these will be seen for a shorter period and will location specific too.
Oil, which is controlled by few countries and regulated by their specific countries can alter the supply of oil. Or just by declaring war on any of these country by America can drive the oil prices up.
This is not a case with Bitcoin. Nobody controls Bitcoins. If anybody says they can alter the price of Bitcoin, they are lying. Run as far as you can.
Secondly people say that the Bitcoin’s price will drop to zero if nobody is willing to buy it as it does not have any inherent value. Bitcoin network provides values as:
Bitcoin works just like cash. You do not go to any bank when you are paying by cash, you just do it. You do not need a bank account or anybody’s permission to transact. It is the same with Bitcoin. You just transact using Bitcoins, you do not need to go any bank and ask them to transfer money on your behalf.
It is cheap and fast. If you ever try do a cross border payment, you will end up paying around 100$ as transaction fee and upto 3 days for funds to transfer. The Bitcoin will do same in 3$ and around 10mins
It is simple and secure. Bitcoin by nature is designed to be focused on security heavily. It is almost near to impossible to hack the bitcoin network or change any information.
The argument that Bitcoin is not an asset and its value will drop to zero if nobody is willing to buy it is not valid because it has an inherent use as an open decentralised financial system.
If something better comes up than Bitcoin than its value decrease until than Bitcoin is the best option we have.
I'm not sure with your argument... there are other cryptocurrencies that do the same thing that bitcoin does and more of them in a better way... then it is possible that the people want to change. If that happens then few people willing to buy bitcoin and the price will drop.
Decentralization will continue and low transaction costs as well with other cryptocurrency.
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Well described
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