It was probably around 2010 when Bitcoin started circulating amongst friends and smaller circles. You would go out and there would be at least one person that would bring it up with most of us shaking it off not knowing what it was and when we did learn about it, didn't make much sense.
It sounded much like a Ponzi and pretty much as most of the sector still does and has been for quite some time. DeFi was definitely a Ponzi which is why a lot of it has died down and the sector has moved onto the next thing NFTs.
Unlike DeFi which is what I refer to as that old radio station game beat the bomb where players would have to say stop before the buzzer and claim the prize, not doing so in time would result in no win. DeFi has just been a massive everyone throw cash in and last man standing gets wiped.
NFT's on the other hand make a little more sense, kind of. I have been scoping a few out and some art beautiful pieces of art that people spend countless hours producing. Others not so much. The question in the price is definitely a challenging one given how does one value art? the price is often upto the bidder and what they're willing to pay. I highly doubt much of it will be resalable at that same value.
It was interesting to see the mainstream promote and some what celebrate the pirating of an entire NFT sector which if it happened to be a music, film or T.V company there would be outrage and it has been the focus of enforcement for a number of decades nowsource. The issue though is that the pirated versions are worthless as they do not carry the authorisation as the original it's like taking an image of a famous painting and then claiming ownership. It's just a copy.
Is bitcoin worth what it's worth?
I am not anti bitcoin but I am not pro bitcoin, I have always sat in that camp of why? it's useless. Oh the opportunities I have had and I let them slip but I am not particularly too worried about them. I think Bitcoin is largely inflated by hype and media attention and I would suggests it's latest growth is a testament to that with the growing popularity of institutional investors now offering Bitcoin ETFs it is causing an over inflated market and competition between ETF offers source
Bitcoin doesn't actually have any use cases as such, yes it can be used as an international payment system that is faster and more secure than the current systems we have but it is still flawed with slow speeds and expensive fees. It's storage and use are other issues to be further resolved. In a nutshell it is an inefficient piece of old technology but people love the name as it has become a household name. Made a few blokes millionaires off $100 10 years ago which is a pretty cool story, but that's all it is a story.
Yet, it still continues to grow and increase in value a phenomena that I can't help but wonder if it has been spurred on by the global pandemic as stores shut and people had nothing else to do with their cash. I am drawn to this conclusion because back in Feb 2020 Bitcoin and most other crypto currencies were obliviated as many dropped their magic internet money for real money to deal with the pandemic source.
Over the following months Bitcoin continued to rise as well lets face it, the world wasn't ending and we realised that the majority of the human species will survive. This same pattern occurred once again when the Omicron variant surfaced however the decline not as great as previous source.
I think there are some concerns in the future once we are all through this and what impact it will have on digital currencies and assets because if we assess price data in normal years the market wasn't as large. Perhaps people are at home with nothing else to do so experimenting with crypto currency and once things commence opening up and returning to pre COVID life those same people will be selling to spend their money in the real world and not the promised metaverse. If COVID has shown us something it's that people do not long for isolation but connection, real work interactions and life experiences. For many stuck on the computer or in front of a screen for almost two years will have shown them that and any discussion of a metaverse would be similar to smelling the fumes of that alcohol you drank too much of once and still churns your stomach when you smell it.
What are your thoughts?
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