Bitcoin use case in my view and why he will stay the KING
Bitcoin has died more than 100 times until now and every drop in BTC price in USD is used for FUD.
Probably biggest and most dangerous FUD was after Mt. Gox filed for bankruptcy in 2014.
It was on all new and that was a moment when I was heard about Bitcoin for the first time. As a curious guy as I am, I have started research about Bitcoin and I loved idea of Bitcoin immediately. I have decided to buy some BTC but it was not easy to convert cash into BTC at that time from the country that I am. I did that at 2015. and of course that it was great decision.
Mt. Gox have caused huge drop in price but for me BTC survival was safe. BTC in my opinion had only one, huge milestone, to become worth anything. When it was created, there was possibility that nobody support it and that was only moment in it's history that it could die.
To get back to the point of the topic, use case of Bitcoin.
To be honest, I don't see Bitcoin as everyday payment system for small things, like cup of coffee. High fees at moment are not reason for that, I believe that BTC developers will solve this with LN or some other thing.
Problem to buy coffee in my view is because price is too high and it will be higher in future.
At moment of writing 1 USD is 0.000108785 BTC. It is not ease to put all those zeros when you are buying something and it will be more zeros if price go higher. I think that average user don't want to do this and there are other cryptos for small payments. You can still pay for cup of coffee with BTC if you have Bitcoin VISA or Mastercard but this is not Bitcoin payment, that is fiat payment after card provider convert your BTC to fiat.
Maybe Bitcoin price in Satoshis can solve this and I have herd ideas for that but I don't think that it will be easy to implement that.
My view of Bitcoin is that it is best store of value and payment system for transferring large amount of money and buying expensive things like houses, cars,etc...
Somebody can ask why BTC, why you don't use some other cryptocurrency for that?
Reason is simple, BTC is most decentralized (not as I would like) of all, it's brand is well known around the world, and it doesn't have leader that you can influence on.
Satoshi's leaving is best thing he could do for BTC dough he's tech skill would be useful for sure and it wouldn't be more pronounces of he's vision that I hate a lot.
If he is around somebody(governments, many bad people) could force him on something, so this what he did is best for Bitcoin and him.
And use case for uncontrolled, free money transfer is huge.
Imagine how rich people from Russia felt after USA and EU put sanctions and froze all money that they have in foreign banks.Nobody want that he's wealth depend on some government's will. With Bitcoin you don't depend.
How would Julian Assange defend himself without BTC? They froze all his assets but BTC they can't.
Swiss banks were forced to open their accounts after 2009. crisis and now Credit Swiss, one of their biggest banks is not profitable for last 3 years. Why would you keep your money in Swiss banks if you don't have any benefit comparing to other banks.
So there are Falkon private bank and Vontobel bank, who firs have aloud keeping bitcoin on account and I am sure that more Swiss banks will follow that.
As a store of value I agree with opinions that you can't just HODL, you need to spend that BTC have value. There is more and more houses bought with BTC and as I wrote, BTC is perfect for buying expensive things. Again story with zeros, it is easier to pay 107 BTC than 1000000USD.
Very positive news were last week when Arizona aloud paying Tax with Bitcoin.
So,slowly, with all FUD and many Altcoins around BTC is gaining worldwide adoption and I have no doubt that
BTC will stay the KING of crypto.
I would like to here other opinions and talk about them.
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I don't think Bitcoin will stay king. The proof of work technology on which it relies is way to power expensive. Bitcoin already consumes electricity in scales of smaller states.
I think it'll stick around for quite some time, but once crypto's made it to being a everyday thing, some more power efficient currency will have taken its place.
Agree that is power expensive but for me this is not a bad thing. If you invest in mining and this mining have some electricity cost than that cryptocoin will be worth more than some POS coin that you can produce without investment. Every security is expensive...
Did you know that bitcoin pow is somewhat actually green:
https://steemit.com/mining/@sames/bitcoin-mining-pow-the-truth
Basically since most energy produced is usually lost( due to the fact energy can't be stored efficiently or storing energy costs more than making more energy itself ) bitcoin mining gives another use for this energy preventing it from being wasted and giving it value. It also will force miners to use renewable resource because nonrenewable resource will keep on getting expensive. In fact here are already solar bitcoin farms. Yes not the best but the stats saying bitcoin mining is completely wasteful is not true.
Currently POW is better.
While yes POW does seems like an energy waste it not. This work is necessary to make the chain secure. In POS, the stakers who owns 10% of the supply will mint 10% of the supply, and won't cost them anything much.
In, POW you have to battle against everything. You have to buy new miners to keep up, pay electricity, cool the machines, buy new ones.
Pos makes it so that 51 attacks are harder bc they are little their investments on the line. Pow is somewhat even harsher. Not only will their rewards lower if 51% attack done, the coin down=machines useless. This is amplified by asic machines which effectively locks the minier rig to mine only that coin.
Pow can be improved even more by making useful mining aka finding primenumbers.
Plus in hardfork POS is bad.
The large staker who opposes the hardfork keep his coin in the old chain. But in the regular hardfork the staker gets an equal amount of coins. The only way to avoid that is to block those coins which is censorship and centralization
I agree about POW, only thing I would like that developers change is algorithm. They could do like Monero, switching algorithm from time to time to stop ASIC boost.
Segwit should stop that. Plus independent reacher have "found" an algorithm that acts like sha-256 aka asic miners compatible with it but looks at useful numbers. Still being tested
Yeah but it gets a little bit out of hand as i think. Payment systems like Paypal that are indeed secure, don't need nearly as much power. And with every Bitcoin that is paid to the miners, mining gets less profitable unless the value of Bitcoin goes up. Until there are no new bitcoins and the miners are paid from the transaction fees.
I actually think Steem and Steem Dollar have a better chance of becoming a main currency, since their value come from the content creators and the stakeholders plus the proof of witness technology needs way less energy.
Paypal is cetralized so it can't be compared with BTC.
I like Steem of course but it is totally different thing than Bitcoin. There is only 21M and there is more USD millionaires than Bitcoins. Even if miners earn from TX fees, if BTC is used fore large TX than even today's fees are ok.
I guess Bitcoin could be used for large transactions, but i don't see the point in it, apart from bitcoin having the biggest net value for the moment.
In the end its only a digital number that is transferred, that number being bigger or smaller doesn't make to much of a difference. I mean one Japanese Yen is worth less than 1 us cent, but that doesn't stop them from buying cars and stuff with yen. What would make a difference though are transaction fees.
Paypal can actually be compared to BTC. Most people don't yet care that much about centralized or decentralized systems. And as far as money transfer goes it isn't that important, more important to the average user would be price stability, transaction speed and fees.
If we talk about investment etc. Bitcoin and Paypal are vastly different.
If you have read article patiently you would understand why decentralization is important. If you look at BTC only as payment system and if you don't care if you control your money than your point is right, Paypal better fits to your needs.
I do in fact know why decentralization is important, but the average user doesn't and thus the average user doesn't care. I am not talking about me in that case. And yes you got to look at bitcoin as a payment system if you want predict its success, because that is what it will be mostly used for and that is what most users are interested in.
That what LN is for :)
Did you know that bitcoin pow is somewhat actually green:
https://steemit.com/mining/@sames/bitcoin-mining-pow-the-truth
Basically since most energy produced is usually lost( due to the fact energy can't be stored efficiently or storing energy costs more than making more energy itself ) bitcoin mining gives another use for this energy preventing it from being wasted and giving it value. It also will force miners to use renewable resource because nonrenewable resource will keep on getting expensive. In fact here are already solar bitcoin farms. Yes not the best but the stats saying bitcoin mining is completely wasteful is not true.
Currently POW is better.
While yes POW does seems like an energy waste it not. This work is necessary to make the chain secure. In POS, the stakers who owns 10% of the supply will mint 10% of the supply, and won't cost them anything much.
In, POW you have to battle against everything. You have to buy new miners to keep up, pay electricity, cool the machines, buy new ones.
Pos makes it so that 51 attacks are harder bc they are little their investments on the line. Pow is somewhat even harsher. Not only will their rewards lower if 51% attack done, the coin down=machines useless. This is amplified by asic machines which effectively locks the minier rig to mine only that coin.
Pow can be improved even more by making useful mining aka finding primenumbers.
Plus in hardfork POS is bad.
The large staker who opposes the hardfork keep his coin in the old chain. But in the regular hardfork the staker gets an equal amount of coins. The only way to avoid that is to block those coins which is censorship and centralization
I think bitcoin will be around a while. I could see the sbd challenging it's market cap someday but sbd has high inflation.
Thank for some info
bitcoin is better by all coin....... what are u saying...