Why bitcoin(btc) no longer deserves.

Bitcoin’s recent 25% plunge illustrates why it will never be a true currency.

@MarcDemesel say that's..👇

If it would have been published on https://t.co/B8ggUDhz44 I would have to tip this one $3000, strong arguments why BTC no longer deserves the name #Bitcoin

https://twitter.com/MarcDeMesel/status/1372980489129230341?s=19

So that i will try to say that, why bitcoin no longer deserves & why bitcoin dream is dead.

Bitcoin was, after all, not designed to be a speculative asset. It was designed to be a currency, a new medium of exchange that people could, and would, use to transact daily business with each other. (That’s why we call it a cryptocurrency.) When Bitcoin was first introduced to the world in 2008 in a white paper, its mysterious creator, who dubbed himself Satoshi Nakamoto, described it as “a purely peer-to-peer version of electronic cash [which] would allow online payments to be sent directly from one party to another without going through a financial institution.” He billed Bitcoin as “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” like a bank or credit card company. And that’s exactly what Hanyecz was doing on that day in 2010: sending an electronic payment directly from himself to another person without any third party being involved. He may have unknowingly made a terrible investment decision, but he was using Bitcoin exactly as it had been designed to be used.

Some of the failure of Bitcoin to live up to its promise as a currency has to do with practical problems with the way it works, most obviously the fact that Bitcoin’s design makes it very slow at processing transactions. For instance, Visa processes approximately 6,000 transactions a second and has the capacity to do many times that. Bitcoin can do seven. So Bitcoin transactions often take a long time to complete, which doesn’t work so well if you’re trying to use Bitcoin at the local convenience store or even buying something online. Bitcoin’s transaction fees have also, at different points, been shockingly high. During the last Bitcoin boom, in 2017, fees reached as high as $55 per transaction, and while they’ve come down sharply since then, as recently as last May it cost more than $6 to buy something with Bitcoin. 

The more fundamental problem for Bitcoin as a currency, though, has to do with the very thing lots of people like about it—namely that the supply of Bitcoin is controlled and limited. Because the supply is limited, when demand for Bitcoin rises (because, say, people are convinced they can get rich quick by buying it), then the value of Bitcoin is going to rise as well. So, if you believe your Bitcoin is going to become more popular, then it’s foolish to spend it on a pizza: You should hoard it and then sell it once its price rises. And since you can get along perfectly well without spending Bitcoin, there’s never been anything pushing people to stop hoarding. The more people hoard Bitcoin, treating it as a speculative asset, the less appealing it seems as a currency.

Bitcoin’s transformation from putative currency to speculative asset, in other words, was effectively built into the system from the start. It’s where Bitcoin was headed all along. Even though it may have been designed as a payment system and a medium of exchange, Bitcoin’s real appeal was, inevitably, going to be as what economists call a “store of value,” a kind of digital analogue to gold. Like gold, Bitcoin is valuable to the extent that people think it’s valuable: You buy it because you think someone else will pay more for it in the future. And like gold, its value can’t be inflated away by a central bank.

The fact that Bitcoin has no intrinsic value (the way a stock or bond does) doesn’t mean it’s headed to zero. It just means that Bitcoin has become totally untethered from its original purpose. What was supposed to be a way to revolutionize people’s everyday financial lives is now mostly a way for people to get rich quick (or lose their shirts) or, in an ideal scenario, for people to protect their wealth against inflation. Bitcoin began as a cryptocurrency. It has ended as a crypto asset.

As a result i will say that bitcoin dream is dead.I think you will all agree with me.