by Alex Lightman and David Lightman. February 19, 2018
Max Keiser points out that Bitcoin has 3 important properties in this order:
1) it’s a communications app
2) it’s a store of value
3) it’s a currency / medium of exchange.
First and foremost it’s a communications app! It grows virally and exponentially because of the nature of the Internet.
Were Whatsapp, Snapchat, Instagram, Twitter and Facebook in a bubble when they hit 20 million users? Of course not. Bitcoin is more compelling than these services because it involves something more vitally important – money. Just like we wouldn’t have expected Twitter adoption to slow down until it started running out of humans with cell phones, so too will Bitcoin and friends do the same. It does not appear that we are in a bubble now. There are occasional buying frenzies but those usually only last a few days.
I’ve been following Bitcoin for years. When it drops – it’s almost always for a good reason. It’s been through many obstacles and growing pains. But now we are out of the awkward teenage years. It’s beginning its take-over-theplanet phase. If anything, it’s going to accelerate faster, as more people recognize its safety.
The medium-of-exchange aspect will kick in later once it starts getting to its saturation phase as the price growth slows. Eventually Bitcoin will be the most stable currency we’ve ever experienced.
Here is Bitcoin’s Value Proposition – its intrinsic value:
This is lots of intrinsic value – both for the wealthy and the poor.
Bitcoin’s exponential growth rate will only slow down when it starts running out of people with phones and computers.
Then it will become a stable medium-of-exchange. For now, that’s not necessary.