6 Problems/Issues With Bitcoin as a Currency

With bitcoin hitting all time highs recently and everyone talking about price, I figured it would be beneficial to take a step back and look at some of the downsides to bitcoin as a currency.

In the video I discuss the following six topics I feel are problems that will need to be addressed as the Bitcoin community continues to grow:
1. Currencies should be inflationary/stable.
2. Currencies should be stable in value.
3. Transaction fees/verification time.
4. Regulation.
5. The infrastructure surrounding the Bitcoin ecosystem revolves around central entities.
6. The concept of Bitcoin is complex and will need to be simplified to achieve mass adoption.

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Disclaimers: all opinions are my own, sponsors are acknowledged. Affiliates are: Amazon, Ledger, and Coinbase or otherwise acknowledged!

[isaiahflemingramsey]

Wow a lot has changed since this video.

[therealnoodles]

You are very correct with all your points. The financial system and monetary system has had a lot of trial and error to get to where we are now. This is the modern, the most efficient type of monetary system to date that we have seen. Bitcoin is a failure, because of the things you have said. It can never attain its 'currency' status because it isn't one. It's a COMMODITY. Commodities are not financial assets, they are real assets. Bitcoin enthusiasts need to get their head around this simple concept.

[citrixsystems]

Eventually the fees will cost too much to make sense how can bitcoin keep going up with that in mind. What is the use case for bitcoin? Is there a way to avoid the fees

[mishrasidhant]

I like how objective you were with your analysis! Looking forward to more content from you!

[missingperson]

really tough scary problems, when bitcoin hits 21 millions and no one is minig anymore, how long transactions going to take?

[danilonarb]

1 sane currencies are deflationary, as productivity grows, you should be able to buy more goods. The incentive to save more instead of spending is good for an economy, it intentivices investment instead of spending. You should study more austrian economics. 2. Btc would stabilize more as it grows more

[MW-qnmq]

Good point. I had thought about the deflationary aspect and it would certainly be a threat to economic growth. That supports the case the government might step in to make it illegal. It might be difficult to confiscate but they can still throw me in jail. Good video and concepts, especially for when you sent it out in 2017. How would you envision the deflationary aspect if it were mass adopted in 50 years?

[suleman]

By 20 December 2017, Blockchane wallet asked me to pay $74.00 miner fee for $120.00 transaction!!! And for 3 days my previous $1400.00 transaction has not been confirmed yet! Screw Bitcoin!! It has no place in future! I have sold all of my Bitcoins for Bitcoin Cash.

[richio]

I don't think of Bitcoin as a currency, but as a type of digital gold. Any currency is only as good as the confidence it holds. Right now, people have confidence in BTC's value. The only confidence they have in the dollar is that inflation is decreasing it's value. Certainly, BTC is a bubble right now, and there's always the possibility that people will lose confidence in the future.

Are you familiar with Aswath Damodaran? He may look like just some guy in this video, but he's a respected Professor of Finance. You seem to have a similar take on the valuation of currency. He's very self-effacing in this video, but what he has to say is not (as he put it) "a lot of ignorant drivel."

BTC is great, but I hold XRP for long term (5-10yrs) value. While Ripple is not (the "all important") decentralized, it IS a third party (impartial) system to replace the Swift system used for cross-border transfers. Banks are not going away, so when Ripple is adopted by all the banks, it will not fade away either. Moreover, XRP is deflationary as a tiny fraction is removed from the market cap with each transaction.