Post
Topic
Board Economics
Re: Two Visions for Bitcoin
by
deisik
on 13/03/2017, 15:24:30 UTC
Very generally, there are two classifications of how people see bitcoin, and people tend to fall to different degrees into the two camps. The first is the to the moon camp. These folks believe bitcoin is solving a fundamental problem that fiat currency doesn't address and that it is only a matter of time before bitcoin replaces the USD as the dominant currency in the world. Now, that's written to the extreme end of it, but I'm sure you've all seen variations of this sentiment on these boards. Also falling into this camp are people who think that the next major recession or market crash is going to send the bitcoin price soaring, as people flee the broken fiat currencies of the world and buy up all the digital gold (btc, of course) they can get their hands on.

The second group thinks bitcoin has serious flaws that will prevent it from ever becoming a major currency for the purposes of trade or commerce, and that it is at best a speculative investment. (Again, written to the extreme.) These people believe that the next major recession or market sell off will tank the price of bitcoin along with everything else, as capital flees the riskiest assets first. This group also believes that bitcoin is a flash in the pan, and other digital currencies will eventually surpass it or they will all diminish in value together.

There are degrees along this spectrum. If we were plotting this out on a scale of 1-10, let's call the first group a 1 and the second group a 10, and a 5 would be someone right in the middle who doesn't think going to the moon is any more or less likely than going to 0.

Where do you fall, and why?

In the first place, I don't think that this classification is very meaningful

Not that it is meaningless as such (it is not), it just doesn't reflect the full specter of reality (or even significant part of it). It is like classifying the world on a gray scale while completely discarding color from the picture. Basically, you claim than one end of the range consists of folks who think that Bitcoin will be indisputable success eventually, the other of folks who don't think so, while in reality the vast majority of people involved with Bitcoin don't think in these terms altogether but just grab at the opportunity to earn profits whenever such an opportunity arises. In other words, they are more interested in Bitcoin volatility overall rather than in Bitcoin hiking to the sky or plummeting to the floor