RE: 🎥 Cryptocurrency Market Overview | 09.05.2019
Great video @cryptospa, and I just formulated a theory while watching it, that is actually a sort of combination of both those people.
Bitcoin will not rise in value despite not having solved the scalability issue, but because it's not solved.
And to make my point here I want you to look at gold, besides the value as an electrical conductor there is not much utility to be had from it, the use of gold in jewelry is only desirable because of it's high price and therefore does not really count from a utility perspective.
It's also in limited supply and it's expensive to move around, so all these things together makes gold the ultimate token for storing value over time and as a hedge when the rest of the economy is crashing.
Now look at Bitcoin, the utility is limited because of it's scalability issue, it's in limited supply and it's expensive to move around, basically just the same characteristics as gold.
Bitcoin will go up and down on it's ability to act as a store of value, while utility tokens such as Steem and EOS and Ethereum will go up and down on fundamentals and expectations, kind of like the stock market, the value of the utility they bring and not as a store of value.
That's a theory anyway, thanks for your video.
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@flaxz, very well written article, uppsss answer :). Yeah, STEEM is a utility token in my view as well.
Ethereum and EOS are platforms for smart contracts. Bitcoin is the real money. It is the real cryptocurrency.
Also it's algorithm PoW is superior to PoS and DPoS of STEEM. It will be very hard for PoS to challenge PoW, at least in the next 10 years.
Ok @cryptospa, I will try to read up a bit more on Lightning Network when I can find the time, because if all of these things are true, both your comment and my theory, then Bitcoin will not solve it's scalability issues, and in my opinion they won't, we all saw what happened or rather din't happen with Bitcoin Cash and several other forks, 7 transactions per second is not a global payment system, 1 million transactions per second is.
Now if Bitcoin is acting as Gold, then Lightning Network can act as a Bitcoin (Gold) backed layer 2 on top of Bitcoin, but the problem is trust.
Since I have not read up enough on LN yet, I am just speculating here ok, so the trust problem with LN as a layer 2 solution is that there must always be equal funds in BTC to back up all BTC LN on the LN at every time, if it's not then the trust is gone and LN might collapse, that's what happened with Tether they where only covered to 74% if the leaked info is correct.
To create sufficient trust for that you need a completely secure technical solution that in no way whatsoever involves trusting humans, only the technology itself, if humans are involved then the trust is gone and we are basically just back to some type of central bank, there is an absolute necessity of a fully transparent and completely secure decentralized technical solution to handle this, no other way can create sufficient trust.
But as I said I will do some research on LN to see what they have and if it is sufficient enough to be a potential solution, have an awesome day. 👍
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@flaxz, thank you for the article. I do like your comments.
Btw, I like Bitcoin Cash. It is one of my favorite cryptocurrencies. It is the same Bitcoin, but with increased block size. So, to some extent, theoretically and practically, Bitcoin Cash solves the scalability issue. So, I consider Bitcoin Cash as a must-have cryptocurrency. It may turn out one day that it's the real Bitcoin. So, I would hedge every Bitcoin with one Bitcoin Cash. I have claimed this since 2017.
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