This is part of the problem I can see, people are investing tons of money in BTC mining when the genuine BTC retail use is still low. The BTC mining firms who grow with the retail use of BTC will be the successful ones.
They invested billions in ASIC’s and the transaction fees which would support them simply aren’t enough at the moment. I guess the miners were also misled into thinking BTC would be adopted faster.
A good BTC mining operation is one which has fewer ASIC’s, and incorporates on-site renewables like Wind/solar in addition to electric from the grid. So mining operations will need to scale down and have more of a non-profit objective, It’s no point in them waiting for the next boom as there may not be one, and even if it does boom it will just mean more people are holding it for investment which will therefore be another false boom because it’s not linked to more people using btc for transactions.
So yes, if we look at the design of BTC it seems to extend deep into the future, the difficulty reduces the amount of coins rewarded so that the last BTC will be mined around 2140. I think we have ignored this fact for too long and it should be considered when people are choosing to invest in it.
For BTC usage to get to billions it may take 20 to 50 years, so those investing now should seriously think about this.
In a strange sort of way I am kind of happy to see the investment part of it crash like this because it exposes the thieves and liars, I am happy that investment firms wont be able to operate and talk people into giving money. All we need is a non-profit crypto exchange in every country and non-profit miners.
Human perception and desire (greed) are the only problems I see here. The main focus has been the value the token can carry, but now I think the full focus should be on the help it can provide humanity, So if countries want to use it for their legal currency they can do so without everyone trying to profit from it and creating a false price which makes more people invest and the false price increases,
We can argue and fight about facts, but one main fact is there was something very wrong with the way BTC was presented to the world which is a reasonable conclusion because the creator is nowhere to be found.
Also one last point, if the crypto exchanges or fiat currencies crash then who will be there to transfer the value of BTC back into fiat? Ultimately if you hold BTC, then you really only have a set of tokens that can have a fiat value assigned to them in a very secure way among other features, (which is still amazing) if we take a look at the current exchanges they are a mess with no clue what they are doing, it is very clear many of them misunderstand that they do nothing with customer funds and use money from profits based on fees charged to the customer.
A crypto exchange could charge their customers £10 per month and scale up as and when more customers join and pay. This should pay for staff on decent salaries, bills, equipment and everything they need to operate any initial setup investment can be repaid quickly. At this point they can use funds from the £10 a month to set up in new countries. They do not need salespeople/traders investing in 1000s of other crypto start ups, just normal staff overseeing a humble non-profit operation.
