Next to nobody is actually using it as a means of exchange because it is poorly suited for that purpose in practice. The only type of commerce for which it’s viable in practice are typically crime or crime-adjacent. There is of course a small market of users for “legitimate” and ethically reasonable purposes, but they are by far in the minority.
The overwhelming majority of users are holding it as an asset. Which it’s also poorly suited for in the long run: it generates nothing in and of itself and requires constant feeding of money and energy to keep it going. The only way to see a return is to trade it to a greater fool.
> Next to nobody is actually using it as a means of exchange because it is poorly suited for that purpose in practice. The only type of commerce for which it’s viable in practice are typically crime or crime-adjacent.
Yes. The size of the money-laundering, exchange control evasion, and tax evasion industry was way underestimated.
What surprised me is that after China banned cryptocurrencies in 2021 [1], the price didn't drop.
Outside of Bitcoin and Ethereum, almost everything in crypto eventually tanks.
The entire NFT market has tanked. Even the big names, such as BAYC, are down. BAYC is down 80% since launch. In memecoin land, "eventually" can be measured in days. Check out TRUMP.
Even Ethereum peaked back in 2021. Bitcoin has had 75% drops. If you bought and held anything other than BTC, you're probably under water now.
Then there are the constant collapses and "rug pulls".[2] US$76 billion total so far.
You and everybody else in the replies talk about BTC specificly while I and OP are about cryptocurrency in general. BTC does indeed suck as a currency.
The overwhelming majority of users are holding it as an asset. Which it’s also poorly suited for in the long run: it generates nothing in and of itself and requires constant feeding of money and energy to keep it going. The only way to see a return is to trade it to a greater fool.