Bitcoin, Gold and "You Got What You Wanted, Happy?"
Things they are a-changing!
Maybe...
Or are they?
We've been watching Bitcoin do it's sideways bugaloo for about four months now. It hit $6,500 in early June, and — with some relatively minor gyrations — it's still around $6,500, four months later.
Smooth Sailing...?
Which made me think about all those people singing a song of "Bitcoin with become a safe haven store of value like GOLD!" over the past couple of years.
They seemed very sincere, in their assertions. Were they trying to convince the world? Or themselves?
Not sure, really. I'm not really an expert on this stuff.
But it seems to me that they've gotten precisely what they asked for: A stable store of value.
Not as exciting for you, now that it's actually here?
I realize that it's very early days yet, and this post is somewhat satirical in nature.
Be careful of what you ask for, because you might just GET it!
BTC definitely seems to have found some price stability...
Have we found a point of equilibrium...?
I do have more serious point here, though.
Gold (and other precious metals) are generally recognized as "safe stores of value" by a pretty significant number of investors. Although prices definitely move up and down, once you adjust for inflation, the price of gold has stayed in a pretty narrow band in the course of the past 30-40 years.
If people sincerely want Bitcoin to have similar status to gold as a store of value, you can't have a currency that goes up 600% in a few months and then loses 80% in a few months.
That's NOT a "safe store of value." In fact, that fits the description of "wildly speculative."
Of course, cryptocurrencies are still pretty new, so they are still in the process of "defining themselves." And that may yet take a while.
But getting back to the price of BTC, which is now behaving somewhat "stably," you can't both get what you wanted AND complain that it's not exciting anymore.
You know?
Pick a lane, any lane, and STAY IN IT!
What do YOU think? If BTC is to be a serious "store of value," do we have to be willing to let go of the idea that the price will rise 1000% in a year? Is "price stability" essential for something to be recognized as a "store of value?" Do you believe cryptos will always be volatile, or will it depend on the individual coin, much like blue chip stocks vs. "high flyer" stocks? Is Bitcoin starting to reach "maturity," and thus will be less and less volatile? Leave a comment-- share your experiences-- be part of the conversation!
(As usual, all text and images by the author, unless otherwise credited. This is original content, created expressly for Steemit)
Created at 181006 21:55 PDT
Posted via SteemPeak.com
I think... that neither the one nor the other but the opposite. };)
However, I miss those days when you still could send Satoshis and BTCs around with 0.000001 fees from wallet to wallet. On a truly peer2peer blockchain as if you were sending a tip to your pals or something, so they could complete to buy a cup of coffee or a good glass of beer. :)
do you see Steem following in tandem with BTC ?? Like most "industries" they seem to.
Your thoughts ??
EVERYthing seems to follow in the footsteps of Bitcoin... but that habit has to break sometime fairly soon, if BTC is to become some sort of "bellwether" for cryptos.
You can't have new and emerging projects be tied to the industry giant... they have to start moving on their own merits.
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I think Bitcoin has gone down for 10 months dropping from a high of 19k in Dec 17 down to 6.5 k now. Meanwhile gold has held pretty steady.
My call is Bitcoin is all over!
I think that there are so many people putting money into it that it should have gone up huge by now; which means all the new money is being botted out of it every day
I think bitcoin will fade to near non existence as the difficulty increases to a point where it will not be profitable to mine and transactions with be to expensive and take days or weeks to process. It's either that or every connected device in the world is going to have to be an active node connected to the bitcoin network at all times. And I'm imagining each of those devices will have to have at minimum a terabyte of storage capacity just to remain in sync with the network.
I agree with you. Yes, gold holds its value, It seems silver is always a go-to but goes down too. I like crypto and believe it is the future just so few know about it.