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Some quick thoughts on bitcoin in the age of libra
I remain rather bearish on bitcoin for a number of related reasons. First, I still regard bitcoin as essentially a service. It is not a currency because it is not legal tender and it is not a security because it is not backed by any asset
But as a service what stops bitcoin from having the same fate as, say, myspace? I still need to see a compelling answer to this question
Second, should we not apeak of a fundamental inefficiency at the heart of bitcoin? I mean the artificial computational difficulty. It is as if a technology is being used for show, like electricity in the early stages. Surely we will come up with a directed use for that power
Third, in an open field of competition what specific advantage does bitcoin offer? Without a link to a real asset and without an outlet for its computing power, its competitive advantage is limited to network power and that can erode quickly. What am I missing?
I do see the value of crypto of course, but why bitcoin in the crypto space? Is the argument that a fully decentralized network offers no incentives to competitors (you are better off just joining)? Or that asset based crypto has so many problems and Satoshi’s framework is so...
...simple and evident that bitcoin effectively exhausts the crypto space?
