Let's ask the trillion-dollar question
What is the Use-case of Bitcoin?
This question seems to get varied answers from almost everyone.
Some believe its nothing but a speculative mania like the tulip mania, some believe its a haven for money launders and drug peddlers, alt-coiners believe its a boomer coin that can only do 7 txn per sec, the new world order elites like IMF believe its an environmental catastrophe that consumes too much energy. Elitists like JP Morgan CEO believe the underlying blockchain technology is the one with real use-case than the currency Bitcoin.
Despite all these ridiculous claims the Bitcoin network seems to be doing its humble job of creating a block (which consists of a bunch of transactions from a bitcoin address to another Bitcoin address ) roughly every 10 minutes for the last 13 years non-stop ever since Satoshi Nakamoto created it.
Thanks to 2nd layer called the lightning network - Bitcoin can now scale to millions of transactions per second eliminating the need for alt-coins completely.
Post creation of Bitcoin, 100s and 1000s of clones of it have been created often with slightly better features like higher transaction throughput ( like litecoin ) and easier programming capabilities to create tokens ( like ethereum etc) and despite 10s of 1000s of coins competing with Bitcoin non-stop for last 13 years none seem like they could take over the OG ( original gangster) aka #bitcoin. Learn why Blockchain is a massive hype train that we have never seen before ?
The pattern from these 'alt-coin' is simple - nothing worked compared to Bitcoin.
Bitcoin has preserved its value despite being attacked by every other coin/force / narrative in the world.
So then again , what is the use case of Bitcoin ?
Bitcoin is now widely being accepted as a store-of-value / money network (at least within crypto users ) and a very good one at that compared to the traditional store-of-value money networks like Gold.
What is store-of-value anyway and why do we need store-of-valute?
Store-of-value asset is something that is widely accepted to keep value over long time owing to capabilities like scarcity, durability ( like gold )
Money (at least good money ) not only needs to be a good store of value but also have divisibility, transportability and verifiability ( gold doesn't have these properties and failed as money as result )
We fundamentally need store-of-value investments like gold or Bitcoin because no fiat money in the world has a limited supply and gets printed at a rate of 5-500% constantly every year.
Gold Vs Bitcoin
The issue with gold per se is that unlike Bitcoin it's physical, so transporting it across space is incredibly risky ( due to piracy, border control what not ) and time-consuming. As a result of these, modern banking networks evolved that act as trusted middlemen to transport money across distances.
Bitcoin doesn't need a trusted middle-man and hence can be considered not only as an ideal store-of-value but also as an ideal payment network/money
This opens up some beautiful use-cases
Replacing swift payment network - $10 Trillion market potentially
Replacing offshore dollar bank accounts - $30-40 Trillion market
some part of the global bond market as an inflation hedge - $50 - 200 Trillion
Total market potential $100 Trillion or more
Right now bitcoin's market cap is at $400 Billion so it's less than 0.2% of its true market potential.
Now, this is exactly why selling is Stupid, not just that selling bitcoin also incurs capital gains tax if you made profits, instead you can borrow against it, Now you know!
Disclaimer: This is not financial advice, this information is purely educational, All Investments carry risk. Always do your own research.