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One of the best independent research teams in the crypto space - Su Zhu + Hasu - has put out some thoughts on the value of Bitcoin. I'll summarize the arguments they put forward, along with my own thoughts on the OG of crypto. I highly recommend reading the full article. Tldr; 21 Million supply of BTC means its a scarce resource, and thus as demand increases, price will follow. Current marketcap of around $80 billion is small compared to other markets, but the potential for disruption and growth is huge. Gold held for investment purposes: around $1.1T privately held (excluding jewelry) and $1.3T held by central banks US dollar notes held abroad: around $1T Global base money: $19.6T Three primary drivers of demand for BTC 1. Digital cash Trend towards cashless society means crypto increasingly comes into play. BTC has properties of cash, but can transferred electronically. 2. A global, neutral settlement network No one controls BTC - no govt, organization, corporation. It's above and beyond these entities, and as such can be truly global. Crypto offers true control over your funds, without having to rely on a trusted third party. But BTC's neutrality and censorship resistance cannot be under-estimated, and is quite rare, even within crypto. Perhaps Monero is similar, in that no one entity or corporation controls it. 3. A hedge against failure of the existing system There is a brewing debt-crisis, as most of the world is massively over leveraged. In western economies, a shift in demographics + also automation will likely result in less taxes being collected. In order to pay bills, currencies will have to devalue. BTC has proved itself in systemic risk scenario - see Venezuela. Bitcoin is the one currency that most non-crypto people have heard of , at least in passing. This brand effect is huge, and will likely not dissipate too much over next few years. Bitcoin has a good case for working as a store of value (despite volatility). It's primary usecase is as digital gold, that can be moved around electronically with quite low fees. The growing inter-operability of crypto makes BTC attractive. It can be traded on DEXs (wrapped Bitcoin), smart contract x-bridges can be tacked on using something like Blocknet in the nearish future. Lot's of smart developers have skin in the game, and therefore are compelled to keep improving the core protocol. Although people are quick to knock BTC as being a dinosaur technologically speaking, it keeps evolving, and we are seeing improvements in scalability with solutions like Lightening Network, UX-UI is much improved. On and off ramps are getting better. With various wallets and even institutional custody, there are less problems with acquiring and storing. ETF will likely approved in next 1-2 years. So what are you're views on BTC - is it here to stay? Will it eclipse previous all time highs?

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Trivial

@Trivial • 5 Years Ago

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One of the best independent research teams in the crypto space - Su Zhu + Hasu - has put out some thoughts on the value of Bitcoin. I'll summarize the arguments they put forward, along with my own thoughts on the OG of crypto. I highly recommend reading the full article. Tldr; 21 Million supply of BTC means its a scarce resource, and thus as demand increases, price will follow. Current marketcap of around $80 billion is small compared to other markets, but the potential for disruption and growth is huge. Gold held for investment purposes: around $1.1T privately held (excluding jewelry) and $1.3T held by central banks US dollar notes held abroad: around $1T Global base money: $19.6T Three primary drivers of demand for BTC 1. Digital cash Trend towards cashless society means crypto increasingly comes into play. BTC has properties of cash, but can transferred electronically. 2. A global, neutral settlement network No one controls BTC - no govt, organization, corporation. It's above and beyond these entities, and as such can be truly global. Crypto offers true control over your funds, without having to rely on a trusted third party. But BTC's neutrality and censorship resistance cannot be under-estimated, and is quite rare, even within crypto. Perhaps Monero is similar, in that no one entity or corporation controls it. 3. A hedge against failure of the existing system There is a brewing debt-crisis, as most of the world is massively over leveraged. In western economies, a shift in demographics + also automation will likely result in less taxes being collected. In order to pay bills, currencies will have to devalue. BTC has proved itself in systemic risk scenario - see Venezuela. Bitcoin is the one currency that most non-crypto people have heard of , at least in passing. This brand effect is huge, and will likely not dissipate too much over next few years. Bitcoin has a good case for working as a store of value (despite volatility). It's primary usecase is as digital gold, that can be moved around electronically with quite low fees. The growing inter-operability of crypto makes BTC attractive. It can be traded on DEXs (wrapped Bitcoin), smart contract x-bridges can be tacked on using something like Blocknet in the nearish future. Lot's of smart developers have skin in the game, and therefore are compelled to keep improving the core protocol. Although people are quick to knock BTC as being a dinosaur technologically speaking, it keeps evolving, and we are seeing improvements in scalability with solutions like Lightening Network, UX-UI is much improved. On and off ramps are getting better. With various wallets and even institutional custody, there are less problems with acquiring and storing. ETF will likely approved in next 1-2 years. So what are you're views on BTC - is it here to stay? Will it eclipse previous all time highs?