Bitcoin is a legendary asset that gave birth to an entire industry. Since its creation, it has grown by millions of percent. But growth in the past doesn't guarantee growth in the future. Throughout human history, even the mightiest empires have collapsed — the Roman, the Mongol, the British. They all seemed invincible until they faced their own accumulated systemic flaws. Bitcoin is no exception: behind its greatness lie serious weaknesses that are rarely spoken of aloud.
Digital tulip mania and the last fool's game
Bitcoin is the digital tulip mania of the 21st century, where speculators collect bits instead of flowers, hoping to sell them to the next enthusiast at a higher price. Price growth is only possible as long as the flow of new buyers doesn't dry up — because without a constant influx of "next ones," the belief in its value collapses.
By the principle of cumulative ruin, the expected value → 0
Any system without intrinsic income that relies on a constant inflow of faith, liquidity, and attention to stay alive — is mortal. Even if the price rises temporarily, it doesn't offset the risk of the "absorbing zero," because the absence of dividends, buybacks, or cash flows turns the asset into a bet on the endless maintenance of belief rather than on the generation of real value.
Lack of buybacks and utility
One of Bitcoin's key weaknesses is the absence of utility and buybacks — mechanisms that create natural demand and sustainable price growth. It has neither an intrinsic economic function nor a reverse flow of value: the network doesn't repurchase coins, doesn't generate revenue, and doesn't incentivize usage. As a result, Bitcoin's price growth depends solely on the arrival of new buyers.
Not a hedge against tail risks
Some experts claim that Bitcoin is a hedge asset. However, a true hedge should demonstrate resilience when other assets fall — meaning it shouldn't correlate with the market during times of crisis. The facts show the opposite: in real stress scenarios, such as the "COVID dump" of March 2020, Bitcoin collapsed even harder than most stocks. It behaved not as a "safe haven," but as a typical risk asset dependent on global liquidity and investor sentiment.
The COVID Dump, a 60% crash in just one week
High volatility
An asset that aspires to be a "store of wealth" must possess low volatility. Bitcoin, however, continues to exhibit daily and weekly fluctuations typical of a speculative asset rather than a "monetary standard." This is a sign of systemic fragility: if the value of an asset meant to serve as a foundation swings by tens of percent with only minor shifts in liquidity flows, then any cooling of demand inevitably turns into a major downturn.
Lack of deflation
Crypto experts often repeat that Bitcoin is a deflationary asset. As proof, they cite statistics on "lost wallets." But this involves a logical fallacy: an inactive wallet is not the same as a lost one, and the accidental loss of private keys does not constitute systemic deflation.
Bitcoin is often presented as a "cure for inflation" merely because its supply is capped at 21 million coins. But the world is full of limited things — land, rare metals, classic cars. The opposite of inflation is deflation, and Bitcoin has no systemic deflation.
Lack of utility and environmental harm
In 16 years, Bitcoin has failed to become a practical everyday payment instrument: while tens of thousands of merchants worldwide accept it, on the scale of the global economy that number is negligible — and most transactions still rely on conversion to fiat. Meanwhile, the network's energy consumption rivals that of entire countries. Massive computational power is spent not on scientific research or infrastructure development, but on the meaningless "mining" of numbers — turning Bitcoin from a technological experiment into an environmental problem of global proportions.
#GoodbyeBitcoin
Bitcoin was the first — but being first doesn't mean being the best. It was conceived as a digital means of payment meant to replace traditional money, yet over time it accidentally turned into a speculative store of value. Its architecture became a prisoner of its own limitations: high volatility, lack of deflation, utility, and value-return mechanisms have made it more of a symbol than a functional tool.
DeflationCoin, on the other hand, was designed from the ground up as a next-generation store of value — with a deliberate deflationary model, a resilient economy, and built-in mechanisms for internal demand. It doesn't copy Bitcoin; it completes its story, turning the idea of "digital money" into a full-fledged financial system where value grows not from speculation, but from the architecture itself.