Force Majeure wrote:I wouldn't classify BitCoin as honest money in the true sense of what that means.
This is a semantics game around what you deem "honest money" and until you clarify your terms, it is just a matter of opinion.
Force Majeure wrote:Yes it is transparent, but its only intrinsic value is in its utility, and its utility can be circumvented by all the copycats.
Incorrect, but again we get back to the semantics of intrinsic value. Those against PMs would argue that you can't eat gold and therefore it has no intrinsic value. Copycats are of minimal concern. Every year that goes by that somebody tries to "invent the new bitcoin" is yet another year under bitcoin's belt where it has lasted as the most secure, most developed crypto. And it is a free market. If ETH or some other crypto overtakes bitcoin one day, that is fine. We can swap to that. In the crypto world that is as easy as hitting a few keys on a computer or phone.
Force Majeure wrote:And although those copycats clearly indicate a trend, not a fad, that doesn't bode very well for BitCoin which will lose all its miners as soon as there are no more free coins to mine.
Incorrect. Miners make fees from the emission of bitcoin (currently 12.5 bitcoin about every 10 minutes), and from the fees of all the transactions in each block. In a couple hundred years, when no further bitcoins are emitted, the miners will continue work for the fees in the transactions in each block. The bitcoin emission rate halves every 4 years. This has been a trend since the January 2009 when bitcoin's genesis block began. Mining is profitable based on the electricity costs, hashrate, difficulty parameters (which adjust about every 2 weeks), and the number of competing miners.
Force Majeure wrote:Nor does it bode well for any specific cryptocurrency which will continue to lose market share to a growing number of copycats.
Market share is not an important metric. This is a network where the number of users on the system is what gives it value, not profits, earnings, or cash flow statements. Bitcoin could have a 5% market share of the crypto market and it is of no concern.
Force Majeure wrote:Not to mention all the energy it takes to mine that is now causing local power companies to lease out their power to the highest bidder so that people don't move in from out of area to exploit low electricity prices. The days of cheap mining are gone, and unless people are taking profits like they should be, all an investment in BitCoin really amounts to is furthering the cashless society.
This is the big scare argument... all the electricity. Come back to this in 10 years and let's see if these scare predictions hold any water. 2nd and 3rd generation cryptos are already converting to other consensus mechanisms that don't require Proof of Work levels of electricity. As to a cashless society, we are nearly there already. Crypto actually has the ability to be cashless and private, whereas today cashless = every transaction tracked through a third party (bank, credit card, etc) who has the power to not allow transactions for any reason whatsoever.
Force Majeure wrote:The youths may not rail against their phones spying on them as they use a fully tracked digital currency on a device that tracks their GPS coordinates and listens in on their conversations, but anybody dumb enough to give away their freedom probably isn't going to earn a good income either. Cryptos will be the currency used by debt slaves once fiat currency gives up the ghost.
Debt slaves? This makes no sense. Are there any lending institutions creating bitcoin out of thin air, and lending it as a fractional reserve currency? Bitcoin is debt free by design, with a known quantity, that can't be inflated due to the corrupt political whims of "benevolent" leaders.
Force Majeure wrote:Precious metals are money.
Hey, we agree on something!
Force Majeure wrote:They really have nothing in common other than that they are both functional currencies and neither one is endorsed by the current establishment, but they are making their own copycats very soon.
Currently, the establishment can much more easily manipulate (suppress) prices of PMs than cryptos. Until PM deliveries actually fail to be made, TPTB can naked short paper metals all day every day with no consequence from government officials. One needs to own the bitcoin to short it (or have a well funded margin account), and on the bitcoin futures markets - those contracts are settled in dollars - they own no bitcoin. The bitcoin price discovery happens on each individual exchange: Coinbase, BitMex, Bitfinex, Kraken, etc, etc unlike PMs.