Bitcoin has no uses. That could be its downfall - Forbes

[quickgun_murugun]

Bitcoin has no uses. That could be its downfall

Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a 'safe harbor.' So what props up its value?
 

https://fortune.com/2021/04/25/bitcoin-btc-value-drop-use-case-currency-digital-gold/amp/

Bitcoin zealots struggle to explain what the signature cryptocurrency is good for. Some of its fans claim that Bitcoin will soon compete with the dollar as a widely accepted currency; others say that its scarcity provides a great hedge against raging inflation and economic crises. It’s also lauded as a “store of value,” as the new digital gold whose price is destined to keep rising because its supply is fixed in stone and its popularity will only continue to soar. 

In reality, Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a safe harbor during the past year’s stock market crash. Its extreme volatility––featuring as many collapses over the past three years as crude oil has suffered in two decades––means that it’s anything but a reliable store of value. Its lurching trajectory of late is true to form: After hitting an all-time peak of $64,800 on April 14, Bitcoin skidded over 23% to $49,700 at midday on April 23, shedding over $200 billion in market cap. “The only ‘use case’ Bitcoin has left is hoping the value goes up and someone pays you more than you paid,” says Alex de Vries, a Dutch economist who runs the website Digiconomist, which tracks Bitcoin’s energy consumption.

Mostly a no-go for shopping

As a piece of global financial infrastructure, the Bitcoin network is hobbled by severely limited capacity. The worldwide network of miners can only process a maximum of seven transactions a second and today, the rate is running at around five, according to de Vries’s estimates. In comparison, Visa can process up to 65,000 payments per second. Hence, any spike in the volume of payments or transfers causes a backlog. Customers must pay miners to register their transactions on the blockchain. As the system gets more and more congested, the miners grant priority to the transactions that offer the highest fees. The purchasers that pay the most go to the head of the line, and get their transactions finished first. 

The process is always costly, and gets much more so as transactions swell or computing power goes offline. “For most of this year, the cost per transaction has been between $16 and $20,” says de Vries. “But it hit $30 in February because of high volumes, and was $59 on April 23, because the flood at a coal mine in China caused a big loss of computing power. Then, the network got even more congested with lots of selling.”
 

Too volatile to provide protection

Gold, the world’s most prized “store of value,” has proven a poor investment over the past nearly half-century. Since 1974, it has precisely doubled in price to $1800 an ounce, while the CPI, the main measure of consumer inflation, rose six-fold. It’s anything but an inflation hedge. Gold does romp in periods of turmoil, as in the oil crises of 1974 and 1978, and the Great Recession. But if you didn’t sell the precious metal when the economy started to recover, you’d give back the gains.

 

No tangible, fundamental value 

 

[tom brady]

Nuv inka akkade unnava baa

[odhu_le_macha]

4 minutes ago, quickgun_murugun said:

Bitcoin has no uses. That could be its downfall

Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a 'safe harbor.' So what props up its value?
 

https://fortune.com/2021/04/25/bitcoin-btc-value-drop-use-case-currency-digital-gold/amp/

Bitcoin zealots struggle to explain what the signature cryptocurrency is good for. Some of its fans claim that Bitcoin will soon compete with the dollar as a widely accepted currency; others say that its scarcity provides a great hedge against raging inflation and economic crises. It’s also lauded as a “store of value,” as the new digital gold whose price is destined to keep rising because its supply is fixed in stone and its popularity will only continue to soar. 

In reality, Bitcoin has flopped as a vehicle for buying things, and it failed in its first big test as a safe harbor during the past year’s stock market crash. Its extreme volatility––featuring as many collapses over the past three years as crude oil has suffered in two decades––means that it’s anything but a reliable store of value. Its lurching trajectory of late is true to form: After hitting an all-time peak of $64,800 on April 14, Bitcoin skidded over 23% to $49,700 at midday on April 23, shedding over $200 billion in market cap. “The only ‘use case’ Bitcoin has left is hoping the value goes up and someone pays you more than you paid,” says Alex de Vries, a Dutch economist who runs the website Digiconomist, which tracks Bitcoin’s energy consumption.

Mostly a no-go for shopping

As a piece of global financial infrastructure, the Bitcoin network is hobbled by severely limited capacity. The worldwide network of miners can only process a maximum of seven transactions a second and today, the rate is running at around five, according to de Vries’s estimates. In comparison, Visa can process up to 65,000 payments per second. Hence, any spike in the volume of payments or transfers causes a backlog. Customers must pay miners to register their transactions on the blockchain. As the system gets more and more congested, the miners grant priority to the transactions that offer the highest fees. The purchasers that pay the most go to the head of the line, and get their transactions finished first. 

The process is always costly, and gets much more so as transactions swell or computing power goes offline. “For most of this year, the cost per transaction has been between $16 and $20,” says de Vries. “But it hit $30 in February because of high volumes, and was $59 on April 23, because the flood at a coal mine in China caused a big loss of computing power. Then, the network got even more congested with lots of selling.”
 

Too volatile to provide protection

Gold, the world’s most prized “store of value,” has proven a poor investment over the past nearly half-century. Since 1974, it has precisely doubled in price to $1800 an ounce, while the CPI, the main measure of consumer inflation, rose six-fold. It’s anything but an inflation hedge. Gold does romp in periods of turmoil, as in the oil crises of 1974 and 1978, and the Great Recession. But if you didn’t sell the precious metal when the economy started to recover, you’d give back the gains.

 

No tangible, fundamental value 

 

E article rasina vadu dip lo kontadu...

[fasak_vachadu]

Frobes oka fake site aha articles anni against ga india untadi, and more over the author’s are paki bangli 

[guntoor_rathaiah]

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Edited April 26, 2021 by guntoor_rathaiah
cvbvc

[quickgun_murugun]

1 hour ago, guntoor_rathaiah said:

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K