So.. these 3 points: Energy, doubtful markets, legacy Banking system and Governments putting up hindrances, not user-friendly .. Actually 4 points..I think.. will reduce the usefulness and success of crypto in the future.
And.. markets that are not really liquid and understood and even less regulated.. 5 points.
listing your points better as you said more in the description of your experiences
1. you said you thought bitcoins "intrinsic value" was based on hoarding.. um no.
golds intrinsic value is not on hoarding for speculated price. bitcoins price/value is not set by markets evaluating users that have no market deposits. the market price is set by those wanting to sell.
so its not based on hoarders, but instead the acquisition cost people refuse to sell below.
EG if it cost everyone just $2 to mine an ounce of gold. golds value would be $2 bottom. and the market speculative price would be $2-$5.
but gold mining costs over $900. which is why gold markets speculate at $900-$2000
its not the case that it cost $2 and everyone hoarding it for 15,000x profit. its actually where they just refuse to sell at a loss. and where their acquisition costs are higher than the previous person.
bitcoins value is the mining cost. which was $20k in 2021 and $30k in 2022. this is the cheapest cost on the planet to mine coins so no one wants to sell for less. and those with higher mining costs
(US $40k) are happy to buy at $30k-$40k rather then mine for more.
(japan $70k) are happy to buy at $30k-$70k rather then mine for more.
which is where the speculative difference of the $30k bottom to $70k top is. the $70k top was maxed out because everyone on the planet could mine for less than $71k so no one valued bitcoin to be worth buying for more then $70k at the time.. mining costs increase. coins change hands all add up to an increase in the bottomline value slowly over time
2. government hindrances
yes the conversion to fiat is a pain. because fiat banks have rules and limits. but you are not forced to convert it to fiat just to hand it down to your kids.
yes some governments have advised banks to be extra cautious with large funds coming from known bitcoin exchanges. but the sentiment of 'evil' was strong in 2014 and has actually started to relax in 2022
the UK for instance closed peoples bank accounts in 2014 but now they just treat it as a normal money transfer where they only question the amount. and not auto-evil a transaction due to its known bitcoin source.
i think some of the banking problems you experienced were not bitcoin direct linked. but more so large amount and also from a chillian bank to a brazilian bank causing some flags/questions.
you might have had a better experience using a brazilian based exchange that pays out in brazilian real
3. bitcoin utility(you might confuse with intrinsic value)
bitcoins utility value is to make transactions that dont need banks. so if you have 14btc. and you want to hand it to your kids. you can do so in the privacy of your home without reporting to a bank why you are shifting $490k of value. your kids can hoard it without being penalised by inheritance tax the moment they get a confirm. they can take it to another country and buy a house on some exotic island without your native bank/ tax office monitoring $ movements
4.market liquidity.
yes its clear markets do things like 'ghost orders' where they fill the market order books with lots of orders and just cancel them before the order is hit if they dont want the price to go in that direction. yes exchange owners also arbitrage using stable coins from one exchange to another to take the advantage of different market prices which then brings both exchanges into balance with each other(before letting the customers take the advantage)
and yes although you see lots of pending orders and lots of filled orders. some.. not all but some are done without having their account balance backed by deposits. which is illegal. and that needs to be regulated for consumer protection (avoid another 'gox')
5. mining 'climate' 'wastage'
if everyone was GPU mining. the electric usage per reward would be massively higher. asics have made mining more energy efficient. as have using pools. and asic farms located in renewable energy regions.
when you read propaganda media saying chinese mining is only 15% clean. thats not based on any analysis of visiting an asic farm and sourcing which power plant its attached to. instead its just generalising china's national renewable number and saying that asic farms must be mixed with all type. its very lazy reporting.
lets take america. its mining is only about 14twh a year. and yet within the decade america wants to be majority Electric car transport system. but that requires 1050twh a year to have all us cars electric.
yep cars use 75x more energy then Us bitcoin . and right now 98% of all cars are fossil fuelled. where as bitcoin mining is only 15% fossil fuelled.
so if you want to pick a climate debate. look at the car industry
bitcoins hashrate has been lingering around an average 150ex for years. +/- 0.3x . yet the car industry needs to grow by 50-75x in under 10 years.
