Currency should not be based on anything. The problem with btc becoming currency is authority. The current system of currency works on authority , thats how money works not to my liking.
To be the digital gold btc has authority, idk exactly where that came from. I mean btc is safest bet to invest in even if it is taken as investment tool. Why? I do not know but i like that, thats how a currency should function.
Untill that authority or trust over btc is not lost it will not be a shit coin.
If you are worried i will assure you that i shall value btc its authority and will have trust over it till i die. You can zap me i will keep it as a factor in this trust🫢
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Maybe I mixed up my definition of currency v/s asset . I thought
- Asset is based on proof of work - no trust - eg #bitcoin or #gold .
- Currency is based on Trust in a nation state. Backed by economy or muscle power eg USD .
Assets are taxed when they are converted into currencies - capital gains. Currencies are taxed when they are converted into assets - use tax or sales tax.