But if we're using it as this thing it wasn't designed for, we're sitting atop a house of cards.
Gold is a store of value. Maybe property if done right. But BTC is a cryptographic currency with no intrinsic value. Other cryptocurrencies are technologically superior to BTC, too.
If the masses jump ship to the next big thing, what is remaining value of Bitcoin?
This is an existential question that I don’t have the answer to.
However, why do people need to jump to the next big thing?
I imagine they'd jump to the next thing for the same reason they jumped into Bitcoin. Bitcoin became a pyramid scheme speculators looking to get rich.
So for example, let's say some shiny new AI gimmick comes along that is yielding BTC 2011-style gains. Those speculators would take their money out of BTC and into the next get rich opportunity.
I don't have a crystal ball, I just see vulnerabilities in BTC's position and am being cautious.
If BTC was just used as a currency like it was supposed to be, the price wouldn't be so inflated right now. It's a looong way down if it pops.
Hundreds of “Treasury Companies” are popping up because those corps want to jump to the next best thing.
They want a store of value they can borrow from.
They’re putting billions into it because they believe in it.
They’re not going to spend it either. They’re going to borrow against it.
They’ll borrow against their store of value.
Aren’t*
Those corps seem to believe in BTC, we'll see if it's well placed or not. I see this inflated price as leaving BTC vulnerable to banking-style contagion if confidence is lost.
Let's say the speculators take their money out of BTC to place it on the next pyramid scheme. Would the price not drop? That isn't a store of value.
Or what if large owners like Blackrock sell up to put the money in something better, what happens to confidence?
And in contagion style, other big holders get out and save their money before it crashes?
It's not like gold where the value remains despite temporary drops in price. BTC is just electrons. It is a currency, nothing else.
