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The network effect is strong, if BTC actually was to take over for USD then people would have to have trust that BTC wouldn't evaporate the next day. BTC's incentive model and network effect provide that.

Assuming of course that BTC could outplace USD.



I see BTC in the same class as Gold (hard assets without any intrinsic value and valued only because everyone else values it). USD is a different asset type - Fiat currencies which are essentially debts owed by various governments to the holders of those currencies.

So BTC won't be replacing USD, imo.


Gold has some intrinsic value, you can turn it into fancy jewelry, teeth replacement or cutlery :)


And yet its market cap, >10T USD, is not at all commensurate to the uses you cited. Governments hold gold in their reserves because they see it as a hard asset.




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