Miners have bitcoins, and want something to spend them on. We got that.
Tech nerds (like me) have mined a few and bought a few, and spent a few.
Speculators have bought a few (and lost a few) and probably spent a few.
But the real question that I don't see addresses very often is: What forces and or factors, outside of speculation, are and or will drive long-term demand for bitcoins and or other cypto's
Are people using it to send money across borders? If they are, great, This is transaction demand, and while good, recognize that it is somewhat fleeting.
Are there other drivers of demand? Again excluding speculation because in the very long-run, it is difficult to believe speculation alone will stand the test of time. Historically it hasn't, which is why people say tulip.
The Fed, QE, fiat printing presses.... These too are good arguments. However, we must recognize the very long real world time line as to when such pressures would genuinely surface.
Note: I am not trying to make an argument against Bitcoin.
I would like to broaden my arguments for Bitcoin. To do this successfully, I need better answers than I currently have.
Thank you for your thoughts?
I think what will drive long-term demand for bitcoins/cryptos is not bitcoin itself, but the problems with fiat and gold. Gold is great, but it's just not practical in today's society. Bitcoin (cryptos) has flaws, no doubt. But, I think some believe it "will be" preferred to both gold and fiat. This is, in part, driving speculation. I don't believe speculation is inherently bad. To me, its more of a symptom.
Honestly, I think the core of the answer involves the theory that people are waking up to the fact that they are "losing" money by saving in fiat. In real terms, your money is worth less saving in a savings account year after year. Seriously, look it the stats. Then after, look up median real income and think about all that again. Yet, people are still purchasing more and more, as inflation adds to those prices. Debt mounts. No one is cutting (including governments) because we have been duped into Keynesian theory. I think people in slow amounts are beginning to wake-up to the reality of all of this and looking any straw to grab. So, saying The Fed, QE, fiat printing press issues have not surfaced yet on the real world timeline is a little naive. It has surfaced, look around. Even with the deceptional statistics, like our current measure of CPI, the answer is obvious. The Fed, and central banking (maybe even govt) manipulation in general, is a huge culprit.
Bitcoin and crypto provide a speculative "chance " to get around the upcoming deleveraging that NEEDS to and WILL occur. Will Bitcoin or cryptos be the savior? I hope so, but I dont know. But, what I do know is with a fixed supply or even a slight growing supply, its value will grow because the QEs will need to grow much faster. Basically, what I do know is fiat is f'd. And gold isn't practical in today's environment. Call all this speculative, if you will, I call it economics.
