All bitcoin is, is fake money.
Why does it have any value at all?
Anyone can literally just make up their own money!
I could print a ton of monopoly dollars and start selling them to people saying something like, “trust me it’ll be really valuable someday!!!!”
But because the only thing you can do with it is trade it to someone else, how can you tell if it really does anything?
It’s even not legal tender, you can’t really buy things with it.
And the greater idiot comes along someday and you can sell it to them, getting it off your hands and making a killing by being an early adopter $$$
Then these idiots are caught with the bag of fake coins, that don’t actually do anything XD
They paid all of this money, for some collectable thing, because someone else said it was “the new money of the world” or some bullshit and you believed him!
This is what everyone thinks the first time they learn about bitcoin
A lot of times people ask, what is bitcoin’s intrinsic value? It doesn’t actually do anything, it’s just internet points. We have credit cards, paypal, venmo, cashapp, kohls cash, heck you can even send money over facebook messenger!
Once you learn what bitcoin is, who made it and why, you’ll see how this argument completely falls apart.
The truth is bitcoin is in fact backed by something. It is backed by the only thing that backs any form of money: the credibility of its monetary properties.
Designed Money – Bitcoin was created to fit all the fundamental properties of money better than gold or fiat
Fidelity’s digital asset arm produced a great report on Bitcoin’s monetary properties and why they are superior to all historical forms of money. This chart explains why bitcoin has value, you have to judge monetary goods on these monetary properties, Durability, divisibility, fungibility, portability, verifiability, scarcity and history of acceptability are all important properties that judge
Some of these monetary attributes were described thousands of years ago by Aristotle and they still hold true to this day.
- Bitcoin is the first accounting innovation in over 700 years
- The last time there was any big revelation in bookkeeping was double booking accounting, popularized by the Medici and Florentine banking families, setting off an explosion of wealth and the renaissance
- Bitcoin is the invention of the decentralized ledger, of full accounting transparency, and of digital scarcity, which in our internet age will also result in a similar explosion of prosperity
- Bitcoin is the invention of a new digital money, it solves a decades old computer science dilemma, and is the invention of digital scarcity
- If you look at all the attributes of a good money, bitcoin is superior in every way
- The tipping point is behind us, the world has already started adopting and there’s no going back
- With adoption growing faster than the internet, and a HODL population of over 150MM
- Adoption will smooth over its volatility, its programmability will keep it improving, and it’s foundation on sound money principles will make it unstoppable
- Bitcoin is the hardest, soundest, and most perfect money ever developed by mankind
- Bitcoin isn’t just money, it’s isn’t just a digital asset, it’s also a network
- It’s an internet protocol, and a technology stack
- it’s a global monetary system and a global financial system
Gold was independently chosen by every society as money for thousands of years due to it’s inherent monetary properties. Bitcoin improves on all of gold’s qualities, making it the best money in human history. It will be chosen voluntarily by the market because of it’s superiority.
One of the very few topics that all economists actually agree on is that price controls are stupid. It leads to shortages and misallocated resources EVERY TIME ITS TRIED there are thousands of examples. Thousands.
AND YET for some reason, everyone thinks the most important financial asset in the global financial system, money, should be managed by the state and corporations.
Do you really want the bankers manipulating the price of money, AKA the price of time for every human on earth…
AND YET no one stops to think that MAYBE price controls on money, maybe just maybe, are AS ineffective as price controls on everything else that they’re tried on.
All of our money is controlled by the state. And you better believe they manipulate and weaponize it, corrupt it and give hand outs to the elite and well connected. False price signals in interest rates cause the boom and bust cycles of our economy and the buildup of unsustainable debt.
Bitcoin is about more than just being the best money ever made, it’s a protest against the socialism that exists at the heart of our global financial system.
*****I have to spend some time her talking about WHAT IS MONEY and why it’s important, then go into how Bitcoin is better money
It is also worth noting that just like other monetary goods, bitcoin is not a company, it doesn’t pay a dividend or have cash flows. Therefore, its value must be derived from its ability to better fulfill the characteristics of a monetary good compared to traditional alternatives.
With a digital asset like bitcoin, it doesn’t require the use of a payment processor, a bank, or a government to transfer value. For large purchases, instead of using a bank as a middleman and paying its fees, you can securely send funds to anyone all over the world, like you would an email.
From <https://www.gemini.com/cryptopedia/what-is-bitcoin#section-bitcoin-is-a-virtual-currency>
It enables cryptographically secure, censorship resistant payments across borders. It is the first and only form of absolute digital scarcity and is not controlled by any one person or group. As a result it cannot be interfered with by any world government.
From <https://bitcoiner.guide/qna/common/>
- Bitcoin was created by an unknown person or group of people under the name Satoshi Nakamoto
- Bitcoin is the introduction of a totally neutral, independent money to the world economic stage, right now it’s small but in the coming years it will be a major world player. What does that look like when you have all inflationary global fiat monies and this one super sound deflationary money that financially incentivizes savings? The black hole of a perfectly scarce monetary good will absorb value as it gets built out.
- You don’t understand…they’ve created the hardest money of all time….hard money is always superior to soft money, over time there’s no escaping the incentives. Bitcoin isn’t an if but a when.