Bitcoin
Out of context: Reply #1941
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Bitcoin doesn't need to be a mainstream payment system and it will still keep going UP and UP and UP in price for the foreseeable future. Yes it will sometimes have big dips because certain people own so much they can manipulate the market. (I think.) Those people are probably causing huge dips and then they can buy back in.
But it will continue to trend upwards over time, probably for years.
First I'll explain why crypto won't be a mainstream payment method in the US until the government changes how they tax it. It's just not feasible for people to legitimately report it on their taxes as it is taxed currently. It's ridiculous. This could change, but for now it's just not realistic to expect people to start shopping in crypto in the states. Or, they might but once they do their taxes they're going to be like, wait, what, what a hassle this is insane! Imagine having to report every single purchase you make to the IRS, itemized and converted to a different currency's value at the time of the transaction. Lol, no thx. However, other countries have different laws and we could see BTC being adopted by other countries sooner.
Ok, sooooo if it's not really currency, why do otherwise SMART and RICH people keep buying it and pushing the price up? Biggest reason is because people have money to invest and they need somewhere to put their money. Period. It's that simple. They have money and nowhere to put it. This is kind of what Elon Musk was saying (although he was going a bit further comparing it to USD and other fiat currency. It's the same argument.)
Basically, if you have a lot of money it is increasingly difficult to find places to invest it. It has been this way for YEARS. Interest rates are low AF, govts are slowly shifting to MMT and there's no indication interest rates will go up significantly.
Wealth is concentrated in a small portion of the population. These people want their money to earn money, but it's hard to find great investments. Ever wonder why there seems to be so many shitty stupid startups that are heavily funded even though they have no plan on how to make money? There are tens of thousands of them. It's not because it's a great investment, it's because MONEY IS AVAILABLE. There are people looking to put their money anywhere they can.
So far, Bitcoin and other crypto has been better than having your money sitting around. And hell, it's been WAAAAY better than that.
So people and businesses continue to buy up Bitcoin and it pushes the price higher and higher. Sure it will dip, but in the long run it will go up and up and up. Until there is a significant shift in interest rates and places to invest, this will continue. And this will snowball because now investors don't want to be left behind in the BTC and crypto market, even if they think it is a bubble.
It has nothing to do with whether or not it is a useful currency (or, if people even consider it currency or not.... that's just not affecting the price right now.)