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RE: Why I Buy Bitcoin During Crashes Despite Calling it a Bubble
There is one intriguing thing about this network though. Theoretically all the current transactions holders could lose access to their private keys and thus negate the value of the network. In fact, the more centralised the network becomes and the longer you wait, the lower the overall value of the network and it will slowly die out. This is assuming that no new tokens are created (which is still some ways off based on halvening times). What do you think?
Haha. Yes that's entirely true! Once the tokens have all been mined then I would expect bad things. That's why I personally invest in Steem. It's an inflationary token that will be mined at a long-term inflation rate of .95%. On top of that we have this and other social networks backing it up. So, there is some time left for bitcoin because I'm not sure too many people even understand your point and like you said we still have some years before this becomes an issue. Thanks for the comment. Any thoughts on Steem? Would love to hear. Mainly negative if possible. :-)
I 100% agree with you that the value of cryptocurrencies comes from network effects. However, there is also a force that counteracts that namely scaling (or the lack of it). Yes, for every user the value squares ("Metcalfe's law") but also for every user the network value decreases because of network congestion albeit not as much.
On a side note: That's why IOTA is interesting to me because counterintuitively the network becomes faster the more users join (not shilling, just arguing from a technical standpoint).