There are two fundamental problems with Bitcoin. The first is that it's not a currency but rather a speculative vehicle like tulip bulbs were a few hundred years ago. The resultant volatility debars it from use as a currency, and when a financial crisis hits, bubbles burst rapidly so it's no good as a hedge mechanism either. The second problem is that it is compute-intensive. Bitcoin already consumes more than the entire power requirements of Ireland each day, just to stay level. As more people pile in, the energy consumption goes exponential. It's been estimated that if only 5% of the world used Bitcoin, the compute requirements would exceed the world's total supply of electricity. Put those two factors together and it's instantly apparent that Bitcoin is a great speculation for those who are fortunate enough to get out at the right time, but a terrible way to hedge against the next financial crisis.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.

Anyone who enjoys my articles here on Medium may be interested in my books Why Democracy Failed and The Praying Ape, both available from Amazon.