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1. Lack of spending

For those that actually hold Bitcoin, there is a lack of spending within the economy. This is a problem if you want actual growth based on real life usage. That doesn't exist in Bitcoin.

This is a problem. All currencies face it. This is why we have drops within various pairs. A low x against y helps improve the currency of x, long-term, as it injects more money into x and increases productivity which increases the worth of x.

Bitcoin, if it is to be a serious currency, needs spending. It also needs to accept fluctuations in prices, which is what the current community is unable to accept as they seem to think you can only go in one direction.

2. Things don't magically rebound after a large depression

This isn't a mere drop or recession. This is an economic holocaust. When there is a tremendous drop like this, quarter after quarter, you don't suddenly see a massive resurgence in price.

Look similar?

3. Transaction fees

Even when the price hits $15,000 people will be hit hard by the high cost of $40/transaction fees and like 8 hour waiting times. If people were to seriously use Bitcoin, this would immediately slow down spending.

This is effectively Bitcoin kicking itself in the nads once it hits a certain price. It becomes uneconomical to use it at all.

As people buy in at higher prices, therefore getting less Bitcoin, this will be a massive problem.

4. Deflationary spiral

People seem to think that Bitcoin is exempt from all laws, whether it be the laws of economics or the laws of the world. They seem to be under the illusion that a deflationary spiral possibly couldn't happen in Bitcoin.

In my opinion, we've seen a deflationary spiral retraction. People thought they could hold off from buying because it kept on rising. At some point this reached a tipping point and there has been a retraction in prices.

This is inherent in the design of Bitcoin because of the fixed amount of currency that exists. Deflation isn't a good for economic growth.

5. Speculation

A large majority of the growth Bitcoin has been based on speculation, not actual currency circulation. If you want long-term growth with a decent price floor being created, then you don't want a high amount of speculation.

Until spending increases and speculation decreases, relatively, then say goodbye to any meaningful value.


There are deep rooted issues in Bitcoin that a Steemit article or TA won't tell you. Until these issues are addressed (unlikely), there is no reason for Bitcoin to grow.

**1. Lack of spending** For those that actually hold Bitcoin, there is a lack of spending within the economy. This is a problem if you want actual growth based on real life usage. That doesn't exist in Bitcoin. This is a problem. All currencies face it. This is why we have drops within various pairs. A low x against y helps improve the currency of x, long-term, as it injects more money into x and increases productivity which increases the worth of x. Bitcoin, if it is to be a serious currency, needs spending. It also needs to accept fluctuations in prices, which is what the current community is unable to accept as they seem to think you can only go in one direction. **2. Things don't magically rebound after a large depression** This isn't a mere drop or recession. This is an economic holocaust. When there is a tremendous drop like this, quarter after quarter, you don't suddenly see a massive resurgence in price. [Look similar?](https://i.imgur.com/rBi4hGt.png) **3. Transaction fees** Even when the price hits $15,000 people will be hit hard by the high cost of $40/transaction fees and like 8 hour waiting times. If people were to seriously use Bitcoin, this would immediately slow down spending. This is effectively Bitcoin kicking itself in the nads once it hits a certain price. It becomes uneconomical to use it at all. As people buy in at higher prices, therefore getting less Bitcoin, this will be a massive problem. **4. Deflationary spiral** People seem to think that Bitcoin is exempt from all laws, whether it be the laws of economics or the laws of the world. They seem to be under the illusion that a deflationary spiral possibly couldn't happen in Bitcoin. In my opinion, we've seen a deflationary spiral retraction. People thought they could hold off from buying because it kept on rising. At some point this reached a tipping point and there has been a retraction in prices. This is inherent in the design of Bitcoin because of the fixed amount of currency that exists. Deflation isn't a good for economic growth. **5. Speculation** A large majority of the growth Bitcoin has been based on speculation, not actual currency circulation. If you want long-term growth with a decent price floor being created, then you don't want a high amount of speculation. Until spending increases and speculation decreases, relatively, then say goodbye to any meaningful value. --- There are deep rooted issues in Bitcoin that a Steemit article or TA won't tell you. Until these issues are addressed (unlikely), there is no reason for Bitcoin to grow.

1 comments

[–] Sarcastaway 1 points (+1|-0)

The worst thing that happened to bitcoin was it going mainstream. Back when it was hovering around $30, it was great as a payment system for digital goods, or tipping people anonymously to support content creation. The second it became popular enough to attract speculators, exchanges got regulated, prices inflated, private mining became impractical, and the whole system went into gridlock.

I think there's a lot of promise in blockchain tech, but I'm not so sure its value lies in currency anymore.