Bull and Bear case for Bitcoin - a basic summary

in #bitcoin7 years ago

BITCOIN:

The ultimate question is "how much further will it go". And it's a question no one can really answer.

The bulls will say (like John McAffee) will say it'll keep rising for a few reasons:

  1. The supply is limited. No more new Bitcoins after 21mill or whatever it is

  2. At the moment it's still relatively niche. Though the market cap of Crytpo is well over $300bn it doesn't include that much 'institutional' money. Meaning there's hundreds of billions $ more in potential if they decide to join the party

  3. It's still pretty complicated to do which dissuades a lot of people. As it gets easier more people will jump on board making the scarcity more valuable

The bears would say:

  1. It's a Ponzi scheme. This isn't helped by the BitConnects of this world

  2. It's associated with the notion of the silk road and drug dealers or whatever use Bitcoin to remain anonymous

  3. Until the above points from the Bulls are addressed, the bubble will burst at some point

We still need more 'things' to do with Bitcoin and alt coins to validate the market. So I’ve seen taxi's in London, ATM issuing Bitcoin and so on but until it becomes more transnational it's unlikely to be adopted much more than it is now.

For me, I’m hedging my bets both ways. Got in to BTC and ETH in June and haven’t done much with it so far. Have 15% of that money to play around with on various Alts to keep me entertained but it’s not a vast sum so if it all goes south, I won’t be too bothered.