I predict within 5 years "crypto" will be thoroughly regulated. Money laundering regs will apply and there will no "secret" holders allowed. Crypto, meaning the holder, will be taxed according when they sell. The IRS always prevails in the long run.
There still might be markets, but prices will reflect the above.
Or it might be nothing.
https://www.youtube.com/watch?v=iomRREashI0
stablecoins are not a threat to bitcoin. If something is pegged to the dollar, and the fed prints, oh, I don't know, a couple trillion, the stablecoin does nothing to protect you. He seems to miss the basic value prop of bitcoin as a decentralized, non-government controlled option. Bitcoin fought the currency vs. store of value in 2017, and store of value won. Bitcoin is not needed to buy coffee.
If anything, central banks are MUCH more concerned about stablecoins and the effect that will have on banking. At this point, they don't really care about bitcoin and view it as a speculative fly. Stablecoins, if they continue to grow and suck up deposits and other safe assets, can have a destabilizing effect on the banking system.
The genie is out of the bottle. It's never going back in.
You are right, I don't get it. I don't understand a "store of value" when the price can fluctuate %50 on a whim. There is no inherent value than whatever someone else will pay for it on any given day. I see the proliferations of dozens of coins and wonder what purpose they have---other than everyone trying to make a fast buck on the next guy to come in and buy.
I read somewhere they benefit of of crypto was the transaction is secure even when you don't trust the other end. Why on earth am I transacting with this person(s)? Maybe tells me what they are buying......
Sure the genie will never be back in the bottle. The technology is amazing.....There are always people looking to make a fast buck and feel like they have inside knowledge. I am just saying at some point in the near future regulation will apply. There is too much money on the table for the feds to ignore.
I can't defend the myriad other coins. I'm a bitcoin only guy.
The reason the value is fluctuating right now is because it is gaining adoption. Of course it's volatile. It has to be to go from 0 to trillions. There is no way to do that without volatility.
The reasons it's described as a store of value is the long-term proposition - not the day to day changes. The USD in your pocket loses half it's value in 30 years. And that's the best case scenario! If you happen to live elsewhere in the world, you won't be so lucky. Not only that, but it's subjects to the whims and fancies of politicians (it's been called shmuck insurance for good reason). Yes, you could invest it in the stock market, but should you have to? You want a secure retirement? It ain't gonna be with bonds. You are forced to take risk unless you want to see it melt away like an ice cube. There are a lot other macro arguments to be made, but that's a different argument then why have it in the first place.
To me, it's boils down to morality and sovereignty. I should be able to save my labor for use in the future (part of the whole point of money), and not be forced to pay a hidden tax that eats away at savings (note, this is not an argument against taxes in general). If a tax needs to be levied, then do it above board. Inflation/monetary debasement hits the poor the hardest, as the rich have the means to earn a greater return. Those closest to the money spigot benefit the most. I want sovereignty over my money and not *have* to invest it to keep it's value.
re: the trust thing, you misunderstood it. It's not that I don't trust the person paying me, it's that before bitcoin, you needed a trusted 3rd party to keep track of what everyone has. If you send me BTC, I know for 100% certainty that you actually had it, without needing to trust someone else to tell me that you do. Bitcoin solved that problem, and that's why it's called trustless.