/biz/ - Business & Finance

Bitcoin it´s slow, expensive, not private and easy to manipualte. It has too many potential pitfalls to fall down. For example;

>Miner regulation. The location of every bitcoin miner can be found and these miners will eventually be regulated by the government. There are articles on why this is likely.

>Coin distribution. Satoshi, his friends and early adopters hold a massive stack. More than 10% of the entire supply. If satoshi or any of the earliest adopters chose to sell, the market would panic and crash. Because of loss in confidence. Combine this with institutions holding more and more, further centralizing coin distribution.

>A lack of usecase. Bitcoin has too few usecases to rest on and fall back on. Speculation/gambling is by far the biggest usecase. When this usecase loses momentum and dies down, it has no attractive usecases to fall back on. A crypto should have as many usecases as possible. Broad usecases are a force against centralization and manipualtion. Almost every system trends towards centralization, and this will likely happen with bitcoin as well, because it doesn´t offer enough usecases.

>Undercutting and selfish mining problems when there is no block rewards. There is a good research paper written on this by Princeton university. Undercutting and selfish mining might become a big problem, and definitely more likely without block rewards.

>>24412713
It's the best investment out there. Don't fall for the BTC meme

>https://bankless.substack.com/p/btcs-monetary-policy-is-overrated
>https://bankless.substack.com/p/eths-monetary-policy-is-underrated
>https://thedefiant.substack.com/p/ether-is-the-best-model-for-money

>>24301622
Well done

>>24301805
1) Utility Asset.

If smart contracts are vehicles, ETH is the fuel.

To conduct any activity on Ethereum requires users to hold Ether, directly or indirectly.

2) Currency Asset.

Ether as a currency performs the following functions:

- Unit of account
- Medium of exchange
- Store of Value

3) Capital Asset.

Ether represents ownership over the Ethereum network, which unlike your traditional corporation, is a robust open and decentralised protocol to facilitate economic activity (eg. derivatives) and non-economic activity (eg. identity management) of any kind.

4) Productive Asset.

Productive assets are nothing but assets that accrue value, like cash flows.

Ether representing ownership over Ethereum results in direct value accrual (Eg. yield from PoS) and indirect value accrual (Eg. demand and burning of gas) to ETH holders.

>>24261731
Fixed