Why Bitcoin is Dumb

Bitcoin is the idea is money gets its value from scarcity, which is a misconception since money gets its value from the volume of transactions involving goods and services. The only reason the dollar still has any value is because people still use it to buy energy, weapons, food, etc. If people or large buyers/sellers like China decide to stop using the dollar then the dollar will crash regardless of how scarce it is. That does not mean that some people won’t continue to make a great deal money from the speculation around this dumb idea at the heart of Bitcoin.