Hi bkuehlhorn,

Thank you for your comments! I wanted to reply to some of your statements about the three facts mentioned in this article. Please let me know if there are any fallacies in my statements.

Bitcoin facts:

3. Bitcoin’s Adoption Rate matches The Adoption Rate Of The Internet

Here you stated that Beanie Baby (I assume Beanie and not Bennie, again please correct me if I am wrong) adoption rate was very good. I am not sure if this was to say that Beanie Babies have no worth or just to point out another asset with a high adoption rate. Either way I am not sure of the adoption rate for Beanie Babies, but I do know the price of one Beanie Baby ranges from $30 USD to $27,000 USD which is interesting.

Also, you stated that “Bitcoin has no value”. I believe that is an opinion and I will explain why I believe it is an opinion. The intrinsic value of Bitcoin is a matter of debate among economists, investors, and market participants. Some argue that Bitcoin has no intrinsic value, as it is not backed by any physical assets or government and is primarily used as a speculative investment. They see it as having value only because people believe it does, in a classic example of the greater fool theory.

Others argue that Bitcoin does have intrinsic value, primarily as a means of exchanging value and as a store of value. They see it as an alternative to traditional fiat currencies and point to its decentralized nature, finite supply, and secure and transparent transaction system as factors that give it intrinsic value.

The truth likely lies somewhere in between, with the intrinsic value of Bitcoin being influenced by a combination of both its tangible and intangible qualities. Ultimately, the intrinsic value of Bitcoin will depend on individual perspectives and beliefs.

4. The Number Of Bitcoins Needed To Buy A House Has Dropped Significantly

Here you’ve stated that Bitcoins price has dropped more than 50% (no argument there). Then you stated that it takes more Bitcoin now to buy the same house (assuming the house didn’t drop in price), again no argument there. However, this fact was looking at a longer period of time like the time period from 2015 to 2021.

It’s difficult to provide an exact comparison of the number of Bitcoins needed to buy a house in 2015 versus 2021, as the value of Bitcoin and the cost of buying a house can vary greatly depending on several factors, including geographical location, currency exchange rates, and the overall housing market.

However, as a rough estimate, in 2015, the value of Bitcoin was much lower compared to 2021, with its price reaching a low of around $200 in early 2015 and then gradually rising to around $500 by the end of the year. Today, in 2023, the value of Bitcoin is much higher than 2015.

So, it’s safe to say that the number of Bitcoins required to buy a house in 2015 would be much lower compared to 2023 (of course factoring in the increased percentage of house prices vs Bitcoin price). However, without knowing the specific details of the house you are interested in buying and the price it is being sold for, it is not possible to give a precise comparison of the number of Bitcoins needed in each year.

9. “Whales” Have Been Accumulating Bitcoin

Here you stated, “Without transactions, Bitcoin miners/nodes have no revenue and cannot keep running.” Well, this is somewhat true, but somewhat true is ultimately false. I will explain why.

Bitcoin miners and nodes are essential for maintaining the Bitcoin network and verifying transactions. They are compensated for their efforts through block rewards and transaction fees.

Block rewards are new bitcoins that are created and awarded to miners for verifying transactions and adding new blocks to the blockchain. Transaction fees are fees that are paid by users to have their transactions processed and added to the blockchain. These fees provide an additional source of revenue for miners, incentivizing them to prioritize the processing of transactions with higher fees.

Therefore, without transactions, there would be no transaction fees for miners to earn, and their revenue would be limited to block rewards alone. This may not be sufficient to cover the costs of running the network, such as electricity and equipment expenses, and it is possible that some miners might choose to stop mining or scale back their operations.

However, it’s important to note that the Bitcoin network has been designed to be highly decentralized and self-sustaining, with multiple miners and nodes participating in the network even if the volume of transactions is low. So, it is unlikely that all miners and nodes would stop running at once if transactions were to stop completely. Nevertheless, it is clear that transactions are an important source of revenue for miners and nodes and play a critical role in maintaining the viability of the network.

That’s all please let me know where you disagree and why. Again, thank you for this comment and challenging what was written on this article.