My views on Bitcoin remain the same since a year ago. Here’s some more thoughts:
Bitcoin can be money for the same reasons USD can be money. Unlike a traditional fiat money, however, Bitcoin has managed to bootstrap itself without the direct backing of government force. Nevertheless, this does not mean that Gresham’s law will not apply to Bitcoins should they become money as they have no commodity use whatsoever. And while BTC does not have direct backing of government force, as I explain above, its existence is parasitic on the current fiat monetary order - people want BTC in order to escape fiat paper without the storage, seizure, theft, transport and transaction risks associated with cash or gold. It is those risks, in combination with the rapid devaluation of fiat currencies that makes BTC able to act as a medium of exchange and, potentially, money. If either or both of those conditions are weakened or eliminated, the value of BTC could crash overnight. This makes the BTC market unstable and speculative - we will continue to see these crashes going forward. In addition, the true causes of these crashes will become more and more difficult to understand as the market cap of BTC increases in scale.
As Dave said:
Dave and I word it differently but I think we’re on the same page.
Clayton -