Not all criminal enterprises are pyramid schemes. The growth of bit coin parallels the perception of moral decay of the regular economy. Bit coin doesn't have to be straight, just not that much more crooked than the legal economy.

CAPITAL LETTERS doesn't make your assertion any truer. Fiat currencies, in the end, must be able to enforce fiat, or there is no "being."

Those are what dollars and so on monetize.

BTC monetizes the infrastructure of anonymity, but does not enforce transactions. It's short of key differences between a token and a currency. Fiat is the ability to create currency, but fiat does not come by fiat. A real currency is one that can command an economy capable of enforcing its will. This is why the money of many countries is called "junk" currency - the country can't actually enforce its writ.

BTC have been falsified several times, by stealing wallets.

Yeah that road in front of your house is completely useless. So are those aircraft carriers. And we could just sink all government land into the sea and no one would notice.

Divisibility is not a part of being a currency. Divisibility dates back to grain as currency in Sumeria. Your interlocutor may be a fanatic, but that does not mean he's always wrong. Of course the BTC want to talk about divisibility as a way of convincing people that infinite deflation isn't a problem. that they will still be able to pay BTC tax on their transactions, since they won't be holding BTC for long, and that, not the divisibility, is the issue. No one actually wants to do business in BTC, they only want to use it as a proxy or as a chip in a game.

This is actually an important point, the chain costs are getting noticeable.

No that's wrong to. To have a fiat, you have to be able to back it. BTC does nothing to back it's fiat. BTC are like chips at a poker game, so long as the other players honor them then it is OK, but there's nothing else.

The phrase you are looking for is path dependent rent.

It's not because there is a real economy of drug users, tax evaders, and sex tourism operators that need it. Bit coin is trying to replaced the unmarked C note or 500 E note as the gold standard for elicit commerce.

Converting everything today. The content mafia is a racket.

The word for a legitimate business that is involved with criminal activities is "racketeering."

1. Make being in cattle class more acceptable. 2. Sell value add to not be subjected to it.

Is the correct formulation here.

An idea is joining two things which seem different, but can be shown to actually be the same. By providing possible reapplication, that is part of the way to "something new," depending on how far afield. If you look at many "new" ideas, the parts and their origins become obvious. The "new" part will often be the means of moving the solution to its new context.

Take, for example the derivation of the Lorentz contraction from a description of the movement of light in aether. Lorentz simplified the mathematics by inventing the idea of local time, to move equations meant for kinematics to this new context of Maxwellian radiation. Poincare recognized that "local time" was an ingenious idea, but did not quite get to what we think of as relativity. The Lorentz contraction, and "local time" are then moved, essentially wholesale, into Einstein's kinematics.

New isn't always the elephant, it is the ability to visualize the elephant where it has never been before. Since innovation is not a completely black box problem, aiding visualization of it can be valuable.