It is an idea that aligns incentives well and has been tested by the world’s programmers for more than 10 years so far.
So, why is it a bad money? First, besides Teslas and a few houses, there are not many goods and services that are traded in Bitcoins.
This is said because, like gold, Bitcoin is in limited supply, costly to mine, and it cannot be reproduced.
But I would say that human beings seem to like bubbles — from tulips to real estate to NTFs .
That is, it undermines banks’ ability to charge fees for intermediating in currency exchanges, transfers and other transactions.
Now they are worth almost 100 times more, but I will only sell them if they can fund my two children’s college educations in the United States in about 2030.
Because Bitcoin’s value could approach zero, I would advise any new investors to approach it as a learning experience.