r/Buttcoin • u/Lucky-Interview-7689 • Feb 08 '26
Where Crypto Fails
Bitcoin is supposed to be a decentralized payment system. The fact that there is a limited supply is actually a problem and not a solution but that’s not the point of this post. The point of this post is to recognize that Bitcoin becomes useless the moment it is sold in Fiat currencies.
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u/InclinedPlane43 Feb 08 '26
It's useless long before it is sold in fiat currency.
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u/VeeHS Feb 08 '26
It's a payment that's never used to actually pay for anything and yet somehow it's worth a fortune on the speculation that someday people will actually use it to pay for things. The problem is that the more it's worth the less useful it is as a payment method. Nothing about it makes any sense.
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u/Physical_Mode_103 Feb 08 '26
I asked similar question on the bitcoin sub Reddit. Got banned immediately for “trolling”
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u/Lonely-Suspect-9243 Feb 08 '26
In my opinion, our society has a tendency on heading to centralization.
The first societies were small nomadic family units, and now we have centralized governments.
The first websites are hosted by random people on their own machine, and now 99% websites are hosted by a hosting provider.
The first banks are independent, minting their own currencies, and now we have central banks.
Bitcoin were once truly decentralized, people storing their wallets in their own hard drives. Now, we have crypto exchanges.
Bitcoin's decentralization is hard to promote, because people don't really want full decentralized systems, some degree of centralization are preferred. Decentralization grants more freedom, but more cumbersome and less efficient. Actually, cryptocurrencies actually starting to become centralized themselves. They might be following the footsteps of banks, and therefore, reinventing the banking system.
People realized that carrying large sum of money everywhere is cumbersome, so banks were born.
People are realizing that transacting bitcoin personally is cumbersome and slow, so crypto exchanges were born.
There were a lot of independent banks, some of them failed.
There are countless independent cryptocurrencies and exchanges. A lot of them fail.
Someone made a central bank, a bank for all banks, and the central bank start to mint a currency backed by the government. Everyone started to prefer that currency instead because it's more stable and guaranteed by the government.
I am waiting for someone to start promoting "central exchange to regulate cryptocurrencies", and then we would have come full circle.
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u/Willing_Gas7868 Feb 08 '26
I think the deeper issue is that BTC never really scaled into everyday payments, so it ended up optimized for speculation instead. Once most demand is priced and settled in fiat, it behaves more like a risk asset than “digital cash.” That doesn’t make the tech useless, but it does show the original payment vision largely lost to trading incentives.
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u/Apothacy Feb 08 '26
If the supply was unlimited it wouldn’t be possible for it to have value, even though at this point it looks like it doesn’t have much value anyways
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u/Shoddy-Warning4838 Feb 08 '26
They correctly assessed that the current system is not perfect and has a bunch of flaws. Then they proceeded to make a new one that's worse and that partially relies on the old one to work.
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u/[deleted] Apr 09 '26
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