So it was hot despite the oak shadow. I'll go for some onions later. Now to the topic. Except what Leserin said, what's the most significant difference between fiat and bitcoin? It's the fact that there is a fixed amount of bitcoin that can be ever produced and you can't change that amount. In other words you can't regulate it (unless you have the 51% of it). Fiat regulations are made to deal with inflation etc. Some reading about gold backed currencies will help too...
But that has nothing to do with regulating Bitcoin and has everything to do with regulating your assets. If a whale could buy up all the water sources in a country, they would just convert their Bitcoin into local currency and buy a river or two. What has Bitcoin got to do with any of that?
Bitcoin does not need any kind of regulation. Countries already have regulations for who can own properties. I don't understand why Bitcoin being permissionless is a problem here. nostr:npub1cm87c625x3tzqu2qzf7e845749k58u7xvx2gc8ym0wmg9sytwwuqdrzwm4
Discussion
But my question is, why is there a need to regulate it at all?
Oh, let me tell a few more things, i am not good at explaining, especially in a foreign language.
So, if you use bitcoin as everyday money, there will, for sure, come a moment you will have to deal with the problems all currencies have. Let's say inflation. If you can't regulate it, then you can't solve the problems, then why having that money, then why should it have value? Quite simple...
We do not need inflation
Still we have it though...
Bitcoin doesn't :P
Doesn't till now because bitcoin is not everyday money. That's the point anyway. So, can you guess what happens if doesn't ever be used as everyday money after the last halving? Why it's quite the possibility that it will deflate?
Bitcoin precludes monetary inflation. Prices can rise for other reasons, but then they have to go down elsewhere, eventually.
Bitcoin has value because miners mine blocks to make changes to a ledger of who owns how much money in the world. A global ledger of everyone's balance. And millions of people believe in this ledger. A fixed supply is a feature of Bitcoin. Its not the whole thing. "Store of value" is just one of the narratives of Bitcoin.
I want to write about why Bitcoin will be used as the default currency in the world. There's this another narrative. Bitcoin is the aligner of energy. Something that's not talk about enough. I will have to write an article about it to make it convincing.
We don't have a deadline for our bet ;).
About the bet... I can't lose it, so making a bet on this is like stealing almost... There can be a draw though, because under specific circumstances bitcoin could be treated as an asset and thus keep some value in general. But you would need these specific circumstances for that.
Ahaha. Its cool nami. It stirred up a good discussion here.
About the fixed supply...
It's not the only characteristic of bitcoin, ok, but that's what makes the main difference with fiat. That's why they said we would not need banks anymore etc. Because through central banks you have regulations on fiat. There is a reason for these regulations though...