Bitcoin MIGHT collapse, but not because of JP Morgan or China
People have a problem with differentiating Bitcoin from the concept of crypto-currency or from blockchain technology.
Yanis Varoufakis argues that Bitcoin only rewards hoarders (don't forget that he's an economy professor and #1 enemy of the banks in EU):
"If bitcoin succeeds in penetrating the marketplace, an increasing quantity of new goods and services will be traded in bitcoin. By definition, the rate of increase in that quantity will outpace the rate of increase in the supply of bitcoins. In short, a restricted supply of bitcoins will be chasing after an increasing number of goods and services. Thus, the available quantity of bitcoins per each unit of goods and services will be falling causing deflation"
To prevent that would need regulation; which is directly against the idea of decentralisation.
This is why Bitcoin is "eventually" doomed to fail; but we don't know when. 1BTC might reach 1 million dollars before that happens. But it will likely happen.
I find value-adding coins more useful; like Steem which is power by its users or JSEcoin that allows your browser to do mining or SiaCoin that allows you to lend your extra storage space.
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Thank You!
What? This is completely my original work except one quote and I clearly specified in the post that it's a quote. Anyways, now I put the quote in the Markdown style, so I hope this satisfies the criteria...
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://www.yanisvaroufakis.eu/2013/04/22/bitcoin-and-the-dangerous-fantasy-of-apolitical-money/
Although I do agree with regulation being the sort of "downfall" of crypto decentralization, it was going to happen eventually regardless, so with that new advances must be made in blockchain technology and other sectors around cryptocurrency to surpass regulations. We are only as limited as we make ourselves with the internet...
I totally agree. The question is which type of technologies will survive. The use cases that are valuable because they generate value or those that are valuable only because they are scarce in amount.
@algons good blog post - upvoted and followed! I think you raise a good point - but if economics can become decentralized it would be revolutionary for every single aspect of life!!
I have just blogged about my thoughts on the JP Morgan news, would be interested to hear your thoughts.
Checking your post now - also followed
bitcoin falling and raising will not change the fact that it has come to stay
if you read carefully, the reason I'm saying it might collapse is not "it rises and falls"