Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.
- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.
I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.
What do you think about the subject? Can you share some enlightening information for me?
The energy consumption isn't a problem at all, its actually a very good thing and will be of great importance for Bitcoin in the future once people actually start to understand it. Volaitility is just part of anything that trades on an open market and it is still very early in Bitcoin's adoption, volatility will continue to go down over time, and it will be much lower once Bitcoin is more of a mainstream thing in say like 15-20 years. Third point have nothing to say, wars have nothing to do with Bitcoin succeeding or failing, people will want Bitcoin because it is very useful and supply capped.
So none of those problems prevent bitcoin at all. The first two just have bad optics at the moment, but mining is very good for society so when bitcoin education spreads people will finally start to not only accept mining is important for bitcoin but they will actually support it for mining's big benefits to society, and volatility will continue going down over time so people will stop freaking out about volatility, especially once they've been holding through one market cycle so that they are always in profit because volatility matters much less when you're in profit no matter what the price does.