When it comes to Bitcoin, it's important to recognize that it should not be treated as an investment. Instead, it should be seen as a speculative negative sum game. Every year, the Bitcoin system consumes an estimated $3.6 billion worth of electricity, all to update the ledger that records everyone's transactions. This electricity is paid for indirectly by those who invest their savings in Bitcoin, resulting in money continually leaking out of the system.
This is one of the reasons why Bitcoin only returned around 60% last year, while coins like Solana and Terra grew by 11,000% and 12,000% respectively. The other cryptocurrencies share many of Bitcoin's flaws (such as wasting resources, lack of protection against theft or loss, and vulnerability to market manipulation). But most importantly, what sets cryptocurrencies apart from proper investments is that these coins produce nothing. Despite this, Bitcoin and other cryptocurrencies have made millions for investors large and small, and have been popularized by figures such as Jack Dorsey and Elon Musk. Much of Bitcoin's success is due to its ability to hide wealth from the government.
Theft and loss of coins are also huge problems affecting Bitcoin, so although it is theoretically possible to store coins safely, history has shown that many people will simply lose their coins - further illustrating why Bitcoin is not a good investment option. Cryptocurrency enemies on Reddit applauded Musk's withdrawal and used any negative news to fuel their criticism of Bitcoin and other coins. They noted that these coins are backed by little more than hype - the kind initially inspired by Musk himself. Litecoin is similar to Bitcoin but differs in terms of transaction speeds, block generation time, hash algorithm and maximum number of coins. I believe in cryptocurrencies, but I am not a holder since I have always seen Bitcoin as a means for future cryptos to learn from - not as the result. In recent months, the crypto infrastructure has developed enough for people to independently invest in coins and blockchains for specific purposes without needing Bitcoin as an intermediary. I've heard people say that Bitcoin is here to stay, but as a cryptocurrency newbie I have a couple of questions about the possible endings of Bitcoin.
It's rare to find an online retailer that accepts bitcoins, which suggests that it hasn't really been popularized as a payment system.
