It’s not crypto and it’s not a currency. Some people think that it is a way to escape government control. It isn’t.
Only the federal government can issue currency. Even if it’s not backed by anything other than the faith and stability of the government (lol!).
Bitcoin is based on pure faith. Faith that some uncontrolled computer system will result in you being able to convert your bitcoin into currency. There have been unexplained losses in recent times. Holdings were lost.
As obnoxious as the system is, the banking system is solid.
Bitcoin’s rise is based on bitcoin’s rise, which has convinced people that they are going to win big. It is a big mass of hot air enclosed in an expandable substance with strong surface tension.
Recall the runup to the Crash of 1929.
I’m looking forward to the bitcoin “correction.” I think people will get more focused on inflation and the value of the dollar. I think then we’ll see the beginning of run up in precious metals.
So is the US dollar as well as all other fiat currencies. In fact at least by the numbers bitcoin has a huge advantage in that the supply is fixed. There can only be 21 million bitcoin. US dollars are subject to instant devaluation simply by the fed increasing the supply which has NO limits. The fed can steal your money without any access whatsoever simply by increasing the supply. While the technology of cryptocurrency is in it's infancy it's clear there are huge advantages for everyone except centralized governments and banking.
Does that help?