fschmidt wrote
The value proposition of cryptocurrencies is that they are like digital cash without inflation, thereby being both a good store of value and a means of efficient anonymous transactions.
... I have heard people claim that Bitcoin has some special network benefit like leading social media platforms have ...
This is a good summary of the all the pro-Bitcoin arguments.
I have another analogy.
You can think of Bitcoin as a company, and a coin is just a share of the company. Of course coins are scarce, because every company's shares are scarce.
Buying a bitcoin is no different from buying a share of a technology company. Bitcoin's market cap is about $500 billion, Vs Tesla is $700 Billion, Amazon $1,590 Billion, Apple $2,200 Billion etc. Bitcoin price went up 2.5 times this past year vs Apple and Amazon both went up 2.5 times. High-growth technology companies that I follow typically went up by more than 3 to 4 times this past year. Tesla was 10 times.
The fundamentals of the Bitcoin Inc is actually two fold: 1. efficient anonymous transactions 2. ponzi scheme. What kept the fundamentals strong is the ponzi scheme.
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