So, this article talks about how Bitcoin is doing well and why it's a good thing to invest in. The writer, Lyn Alden, gives Bitcoin an A- rating because she thinks it has five important things that make it a great choice for people who want to put their money in something. These five things are:
1. How much Bitcoin is out there and how easy it is to buy and sell it (market capitalization and liquidity).
2. The number of people using it and how fast it can handle transactions (network effects and scalability).
3. How safe and secure it is from hackers and bad guys (security and decentralization).
4. How many new things are being built on top of Bitcoin, like apps and games (developer activity and ecosystem).
5. The overall health and strength of the Bitcoin community (community and governance).
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- The author uses a vague term "market capitalization and liquidity" without defining it or explaining how it is relevant to Bitcoin's health. This creates confusion for the reader and makes it hard to follow the logic of the argument. A better way to present this metric would be to provide some examples of how market cap and liquidity affect Bitcoin's price stability, adoption, and network effect.
- The author also ignores the role of mining in maintaining Bitcoin's security and decentralization. Miners are not just "cost centers" but essential participants in the consensus mechanism that validates transactions and prevents double-spending. By neglecting this aspect, the author shows a lack of understanding of how Bitcoin works at a technical level. A more comprehensive metric would include the hash rate, the distribution of mining pools, and the energy efficiency of the network.
- The author criticizes Bitcoin's app ecosystem for being "limited" and not as diverse as other platforms like Ethereum or Litecoin. However, this is a subjective judgment that does not account for the variety of use cases and applications that Bitcoin enables. Bitcoin is not just a payment system but also a store of value, a hedge against inflation, a borderless currency, and a sovereignty tool. The author should acknowledge these aspects and how they contribute to Bitcoin's network effect and demand.
- The author makes some positive remarks about Bitcoin's monetary policy, scalability, and adoption, but does not provide any evidence or data to support them. These claims are based on opinions and assumptions that may not be shared by other investors or analysts. A more convincing metric would require some empirical analysis of the market trends, user behavior, and developer activity related to Bitcoin.
- The author concludes that Bitcoin is "highly investable" but does not explain why or how. This statement is vague and unsubstantiated, and leaves the reader wondering what criteria the author used to make this judgment. A more informative metric would define the expected returns, risks, and opportunities of investing in Bitcoin, and compare them with other assets classes or alternatives.