I have heard so many stories about why BTC that I have lost count. But I never heard the true reason Why BTC? So here it is. BTC is the world's first Global Dual Parallel Currency System (GDPCS). The fact that it cannot be debased makes it intrinsically valuable. Unless of course, you believe that Gov't FIAT will ever stop printing in excess.
Now I used BTC as the example since it is accepted worldwide, that may not be the case decades from now. As an example, the US car industry started out with 2,000 companies. Now we barely have 3. Thus which cryptos ultimately win is unknown, but being 1st does matter. Think Microsoft.
The Gold std did not fail bc there was only a fixed amount of gold, it failed bc Gov'ts refused to debase FIAT accordingly. Too visible for the people to see the value of their dollar savings fade away. By leaving the price of gold to markets, it took the blame away from Gov't. Cryptos are now bringing back that accountability to all Gov'ts, like it or not, agree with it or not. That is why Gov'ts hate cryptos. So they use its immaturity as a means to trash cryptos. I assure you, as BTC (or whatever) matures the extreme volatility will die off. We are still in the crypto infency stages with a lot more upside in the years to come. The TAM (Total Addressable Market) as of now is HUGE! 7.7 billion people and counting.
Having said that, BTC as GDPCS works great, as a stand-alone currency not so much. As a stand-alone currency, it disincentivizes production. bc the more widgets, you make the less BTC you will receive for your efforts. That is a recipe for economic disaster and financial ruin.
Understanding what BTC is and isn't is very important. Understanding why you are buying it for the long term and not using leverage to do so is what will make your investment succeed over time.
Lastly, this chart clearly illustrates that stocks are not going up bc of companies being more valuable. Stocks are going up bc of the supply of FIAT being printed up and handed out like candy to Wall Street. Don't believe me? take a look for yourself.
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