Let’s focus on fundamental analysis for a second. The number of wallets with more than 1k worth of bitcoin is still puny and barely growing. Most of it is parked and is not being used for anything. On the other hand, we’re still in a situation where the bigger the polluter of the environment you are, the more rewards you get. Don’t get me wrong. POW is secure but if you really think this asset will have a trillion+ dollar market cap, then you must also believe that trillions of dollars worth of money will be wasted on electricity costs to pollute the environment. If you think that’s sustainable, you’re delusional. Do developers get paid? No. Hence why there hasn’t been much of an incentive to drastically improve the network either. Do people who promote bitcoin get paid? No.Over the last decade, bitcoin’s price increased exponentially. Why? It’s pretty simple really. It’s a scarce asset and because on the face of it it seemed revolutionary and “new tech” the price was directly correlated to increasing hype and not actual adoption. More hype = increasing price. But hype is based on awareness and once awareness peaks, adoption has to increase for the price to continue up. Hype peaked in December 2017 due to the average person for the first time being aware of bitcoin. And adoption hasn’t changed. If the price relied solely on hype and not adoption, we have already peaked at 20K, and will likely never reach that peak again.
Submitted November 30, 2019 at 04:20PM
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