This notion comes from a flawed understanding of economics. Fiat currencies costs at least the same amount of resources to create , regulate and secure as Bitcoin.“Rent” always forces production costs (MC) to always equal sale prices (MR) or MC=MR. Fiat is simply more abstract and complex form or Proof of Work that uses more human involvement (which uses tremendous amounts of resources and has a tremendous environmental impact) as a PoW coin like Bitcoin. Humans instead of ASICs are shouldering more of the work to create, regulate , and secure each of those currencies; This is "work" whether it involves burning electricity directly or food and electricity that humans consume to perform their work. This is an inescapable economic reality. The more valuable something is the more it will cost to secure it because the more effort will be made to steal and or control it. This applies to any currency or asset. Consider the Dollar Auction Game - https://en.wikipedia.org/wiki/...

This is very straight forward , because consistent usage and purchasing from the same group of people simply would mean the price would on average roughly double every 4 years due to bitcoin being disinflationary. whether or not this will continue after 2140 is another matter because there would need to be enough transaction volume to sustain Bitcoins security model.

This instinct is healthy because assets/currencies that appreciate too quickly should make you skeptical. The only issue here is this is not the first bull market cycle of Bitcoin. There have been many. So its worth investigating why this keeps occurring

Bitcoin is primarily a reaction to the corruption from the 2007-2008 financial crisis. Satoshi's principle intention was to create digital scarcity that cannot be manipulated and inflated. Thus the message in the Genesis Block. Yes, bitcoin is still a fantastic tool for regulatory arbitrage but has a while to catch up to the king of illegal transactions = USD, followed by euros being second.

Bitcoin being disinflationary does not need new investors to continue to appreciate in value. Bitcoin has a circular economy of users who find Bitcoin useful. If you don't want to use Bitcoin , great, there is no need for you to use it.

intrinsic value is a misleading term that many gold fanatics like to use that seems to either suggest there is some inherent value in something physical or that gold has alternative use cases other than as money it can fall back on. Every currency and asset derives its value subjectively from humans. https://wiki.mises.org/wiki/Su...

Bitcoin is far from perfect but the assumption that people hoard it during periods of rapid deflation is a myth. The opposite occurs during rapid appreciation. More spending and more charitable giving occurs. I am not referring to speculative trading(which also increases) but spending on goods and services and donations as well.

I spend and replace my Bitcoin almost daily and save money off most of the things I buy with Bitcoin. Volatility doesn't hurt most merchants as they use Bitcoin as a payment rail. You can buy almost anything with Bitcoin including homes and cars.

If people just use this app they can help navigate around the poop in SF - https://www.sfgate.com/bayarea...

100% solar and wind is simply not realistic with how inefficient batteries are and meeting electrical demands . Nuclear power is one of the greenest and safest forms of energy production , especially with new thorium reactors

Always an exception to the general rule. This is an extremely rare example

I can send BTC with my lightning app to a friend in Iran or china. There is an instant confirmation and fees are 0 as well. Bitcoin in most instances are far more fungible digitally than fiat and Bitcoin is also a global currency that doesn't need to barter across country lines and pay a spread and fx exchange fee everytime one passes a border.

It is fair to criticize Bitcoin as having poor UX, being difficult to understand by many people, and being volatile. You are 100% correct that being a stable unit of account is critical to having a useful currency. This isn't the only important quality of a currency however= fungibility, divisibility, scarcity, Durability, acceptability, and Cognizability are all other important aspects that make a good currency. Bitcoin excels in some of these other qualities which is why it has a inelastic demand specifically as a currency and has a circular economy of people who depend upon it as a currency regardless of this volatility. we expect in time as liquidity improves , volatility will drop but this is still an experiment in progress.

You are correct insomuch as stability for a less volatile unit of account is a very important quality, among others, that make for a useful currency and Bitcoin is far more volatile than most fiat currencies which make it more difficult to use in some aspects than many fiat currencies. One distinction though is because Bitcoin has better fungibility digitally, it has a inelastic demand specifically as a currency and has a circular economy of people who depend upon it as a currency regardless of this volatility.

You aren't supposed to make day to day transactions onchain. These are supposed to be made offchain, in sidechains, statechains, and payment channels. Bitcoin already does scale quite nicely.

Volatility is not due to merchants insta-selling BTC for fiat but large speculators day trading. Even someone buying an exotic car has no effect because there is far more buy limit support than a couple million dollars of BTC being dumped for fiat.

This is correct. At the price of 7k USD current inflation to secure the network requires ~12.6 million USD each day. If the price remains the same in 2020 this will drop to ~6.3 million USD daily, although its more likely we will see more appreciation next year which means the cost of security will be higher. (After next halving 900 BTC daily x value of BTC in fiat or gold) in resources spent to secure the network.

I would suggest fiat costs far more to secure than Bitcoin per value transferred, but this is a very complex calculation to perform(on the fiat side) and more research is needed

One key aspect is efficient miners will always remain profitable(except for rare short term events) because mining difficulty adjusts dynamically up and down.

All currencies and assets are valued by the marketplace and Bitcoin is backed by a network of users, investors, companies, and physical infrastructure that are incentivized to keep it secure. Suggesting 0 is a possibility soon is a bit hyperbolic because even failed fiat currencies still fetch a price on the market, but my guess is you will keep delaying your estimated "death" of Bitcoin as we have seen critics do over the last 10 years. For something that keeps "dying" it certainly keeps growing in value and users - https://99bitcoins.com/bitcoin...

Bitcoin is a useful currency for me and saves me a lot of money(I send money internationally and can buy things off amazon for 20% off as two examples) . All currencies and assets that people have investments in have different risks and tradeoffs. I don't advocate people invest 100% in Bitcoin , and many times I tell people they should just use BTC and not invest in it depending upon their circumstances.