Dial the clock back by thirteen years. Bitcoin is trading at five dollars a coin. You ask me “what will the world look like when Bitcoin is at $100,000?”
It seems like a more puzzling question is why Bitcoin didn’t fade away when other cryptocurrencies become popular? It’s not a technological advantage - the code is easy to copy. Many improvements have been made to other coins.
Is the power of a brand that strong? Apparently so.
Network effects of liquidity. You always want to hold a currency that you can actually sell. All other things being equal, you’ll pick the one with the best liquidity and ease of trading.
If you might need the money soon, it seems like a stablecoin would be better? They aren’t speculative investments though, and speculation seems critical to Bitcoin’s popularity.
You’re asking me why Bitcoin didn’t fade away. The biggest stablecoin, Tether, crossed a $5B market cap only in 2020. We are still very early. And yes the speculative aspect matters.
It seems like a more puzzling question is why Bitcoin didn’t fade away when other cryptocurrencies become popular? It’s not a technological advantage - the code is easy to copy. Many improvements have been made to other coins.
Is the power of a brand that strong? Apparently so.
Network effects of liquidity. You always want to hold a currency that you can actually sell. All other things being equal, you’ll pick the one with the best liquidity and ease of trading.
If you might need the money soon, it seems like a stablecoin would be better? They aren’t speculative investments though, and speculation seems critical to Bitcoin’s popularity.
You’re asking me why Bitcoin didn’t fade away. The biggest stablecoin, Tether, crossed a $5B market cap only in 2020. We are still very early. And yes the speculative aspect matters.