
With Bitcoin's experiencing an utter bloodbath today, this may come across as "I told ya so", but hopefully not. For nearly 10 years, Bitcoin promoters and major investors have never been able to answer a question I started asking in 2013, and kept asking over the years: If Bitcoin is such an important virtual currency, why does it have less daily transactions than Linden Dollars in Second Life?
This isn't to say Linden Dollars are superior to Bitcoin -- which after all, are a virtual currency intrinsically tied to a social game MMO platform. However, after all that hype, you'd think Silicon Valley would be quick to have the same skepticism for Bitcoin as they did for Second Life after it failed to deliver on its promises in 2006-2008.
Daily BTC transactions have grown somewhat since then, but remain below 300,000 per day, as compared to Second Life's 400,000+.
Why? Short answer: Because the value of any money -- even and especially virtual money -- is created by a community which agrees to value it. Even and especially a virtual community. Linden Dollars have that. Bitcoin never really did.
Again, this isn't said with any triumph, because thousands if not millions of people have bought into the Bitcoin hype, and are now suffering. But the thing is, another blockchain-based speculation bubble is still happening, and the same principles still apply:
Comparing the BTC Apple to the L$ Orange (Comment of the Week)
Reader Joey1058 has a fair point about my comparing the oranges of Linden Dollars to the apples of Bitcoin:
This is roughly right. Though overall, I'd still say L$ and BTC is a comparison of tangerines and oranges, i.e. citrus fruit with more overlap than apples:
Continue reading "Comparing the BTC Apple to the L$ Orange (Comment of the Week)" »
Posted on Monday, May 16, 2022 at 02:02 PM in Bitcoin, Comment of the Week, Economics of SL | Permalink | Comments (1)
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