I don't know very well Tether, is it using a cryptography tech or is it just a scriptural money?
Tether runs on
OMNI Layer, the original smart contract system running on the Bitcoin blockchain. That isn't so important as I was just trying to illustrate that although Satoshi described it as a payment system it is actually far more. It's an entire monetary system.
Ok, yes perhaps the fixed value wasn't a good argument. So, the supply and demand is what makes people speculating on (or at least it participates), but what if Bitcoin wasn't capped at 21 million, we could have less speculation less volatility and so less "investments in"
Or if Bitcoin was somehow stable +/-5% people wouldn't jump on the wagon to get a better return than a saving account
Stability will come with size. Forget all the talk of market cap as that really doesn't mean anything in terms of a currency. Only a small proportion of Bitcoins are actually traded and involved in the price discovery process. Forex markets have much more liquidity so it takes much more money to move USDEUR than it does to move BTCUSD. As an example, if the price of BTC was 10x then it would take 10x as much money to move the price the same amount.
I think there's something in your argument that it is wrong to think of it as an investment. It is really a question of inflationary money vs. deflationary money. It is clear to me that the fixed supply was intended to mean that it would always gain value over fiat money over a long timespan and thus make it a more attractive type of money to use and store your wealth in.
If someone thinks of it as an investment then they are going to buy it to hold and then later take profits by selling back to fiat. I prefer just to think of it as a form of money that I would rather have and keep.
