[mindcandy]

There are at least two reasons to buy Bitcoin:

1. You need it for use as a collateral asset for smart contracts. There are no crypto cops or crypto courts. Only collateral gives contracts teeth. There are many options here. Just like there are many options for collateral assets in traditional finance. But, BTC is the top dog for the role and the first choice of individuals and institutions trying to lay down the foundations of decentralized finance.

2. You are speculating that the growth of BTC's growth in value as a collateral asset will outpace the growth of other assets. This as played out well over the past decade.

[ajross]

So, #2 is exactly what I said, just fancy. I agree, people bet on BTC's growth. That's what speculation is. But your causality is circular: people betting on BTC/USD because it's grown in the past is literally the definition of "pure" speculation.

But #1 simply isn't correct. Yes yes yes, I've read all the kool aid papers too. But the amount of crypto held as a "collateral asset for smart contracts" is effectively zero. BTC, in practice, just gets parked. Most wallets never trade at all.