Bitcoin news this week was not confined to crashing prices. An even more ominous trend for bitcoin has emerged, as reported in this article.
Bitcoin usage dropped almost 80% in the year ending last September. While bitcoin has always served as a speculative gamble and utility token for criminals, many advocates hoped that bitcoin could break out and become a true currency offering liquidity and price stability. Instead, the opposite has happened.
Along with a usage collapse comes a price collapse from $6,500 to $3,500 per coin in a matter of weeks, a nearly 50% price crash on top of the 67% crash that took place earlier this year. One commentator claims, “There would have to be a stability requirement if [bitcoin] is to become another form of money.”
That’s a nice sentiment, but it’s detached from reality. Bitcoin is failing in every important category of suitability as money — price stability, convenience, transaction cost, speed, sustainability, scalability and volume.
What’s happening with bitcoin is not a bump in the road but the end of a fantasy. That’s been my view for a long time, and now the data support that view.
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