I hate to say “Bitcoin” because of its high risk, short track record, volatility, faddish aura, etc, but:
I believe it’s filling a gap beyond being a better gold-like asset. Better gold = digitally portable, 24 hr liquidity, digital literate friendly, fixed cap, transactions (even with its limits), decentralized control, etc.
But the solidly fixed cap is more profound than I think most people recognize. Potentially, once Bitcoin finds its “true” price, it will continue to grow in value in proportion to all wealth in the economy - over the long run. So it won’t just be a hedge against downturns, but eventually a semi-stable way of sharing in overall increasing wealth in the economy.
I don’t know of another instrument that anyone can easily buy that might track (over the long run) with global wealth as apposed to particular entities or particular aspects of the economy.
So in that sense, anyone can participate in overall wealth growth. A very useful new tool!
OF COURSE, this is SPECULATION on my part. But I think the idea of a total global wealth correlated asset is new and useful.
This makes it more like a collectable (say, baseball cards) than a currency. The number is capped and some will be lost. It has value as long as people are interested in it--scarcity does not imply value.
It also has a short track record and could run into issues if miners collude, there's a DDoS attack, or someone with a lot of resources reverses transactions, hurting confidence in it.
Baseball cards are valued for being distinct. Bitcoin for being fungible (despite a traceable blockchain history).
Baseball cards are not divisible.
I know of no situation in which collectibles are viable for transaction, but Bitcoin is. (Despite limitations in transaction numbers, speed of confirmation and transaction fees.)
I believe it’s filling a gap beyond being a better gold-like asset. Better gold = digitally portable, 24 hr liquidity, digital literate friendly, fixed cap, transactions (even with its limits), decentralized control, etc.
But the solidly fixed cap is more profound than I think most people recognize. Potentially, once Bitcoin finds its “true” price, it will continue to grow in value in proportion to all wealth in the economy - over the long run. So it won’t just be a hedge against downturns, but eventually a semi-stable way of sharing in overall increasing wealth in the economy.
I don’t know of another instrument that anyone can easily buy that might track (over the long run) with global wealth as apposed to particular entities or particular aspects of the economy.
So in that sense, anyone can participate in overall wealth growth. A very useful new tool!
OF COURSE, this is SPECULATION on my part. But I think the idea of a total global wealth correlated asset is new and useful.