Bitcoin Audible Read_509 - Fidelity: Addressing Persisting Bitcoin Criticisms [Ria Bhutoria]
Mar 26, 2021
Dive into the complexities of Bitcoin as common criticisms are tackled head-on. Discover how Bitcoin's volatility is tied to its fixed supply and learn about historical parallels with gold. Find out why Bitcoin's designed limitations favor its role as settlement tech. Explore the significant portion of renewable energy used in mining and the transparency that aids in combatting illicit activities. Finally, grasp the foundational network effects that protect Bitcoin's unique status in the digital asset landscape.
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Volatility Is A Price Of Scarcity
- Bitcoin's volatility is a deliberate trade-off for perfect supply inelasticity and an intervention-resistant market.
- As adoption, liquidity, and derivatives grow, volatility should decline over time.
Base Layer Is For Settlement Not Coffee
- Bitcoin prioritizes decentralization and immutability by limiting base-layer capacity.
- High-assurance settlement fits cross-border and high-value uses, while Lightning and layers handle small payments.
Mining Energy Secures Monetary Integrity
- Much Bitcoin mining uses renewables or otherwise-wasted energy like stranded gas.
- Energy secures Bitcoin; its cost underpins immutability and attack resistance.