I have friends and colleagues working in the finance industry who still see #Bitcoin as a virtual fake money currency without any real value. Something that is both, unnecessary and negligible. Well, let me take you on my train of thought for a moment.
One of the fascinating things about Bitcoin is how many different perspectives you can have on it. Here’s my favorite one:
Bitcoin is an artificial, autonomous, hybrid, ever growing and evolving organism, living half in the digital, half in the physical realm. Metabolizing energy provided by humans – who are cleverly incentivized algorithmically for their service – to produce trustless, unforgeable truth in a world of ever increasing fakeness, uncertainty and inequality. A truth that is uncensorable and accessible to every human being on the planet. Something, that has not existed before, and does not truly exist in the absence of Bitcoin. Read that again.
This organism is so resilient that it has survived every inside or outside attack that has ever been thrown at it and still becoming stronger each day. It has long reached escape velocity against all other crypto assets that have tried to copy it and compete with it in the money domain, but invariably failed.
„Bitcoin the Asset“ is ultimately the monetization of all this, with the twist that while its total value is limitless, there can never be more than 21 million units accounting for this total value. And you and anybody else can own any number or fraction of these scarce units, without being exposed to the risk of ever being diluted by somebody or something creating additional units in the future.
With all its features, Bitcoin will undoubtedly continue to grow into a globally dominant asset class, and in the process will suck up all non-productive assets. Because it is not only the hardest asset of them all, but also frictionless.
But…
…it’s destroying the planet‼️
…it’s volatile‼️
…it is not backed by anything‼️
Good points, but…
➡️ It is the debt based fiat money system and its incentivation of high time preference that is in fact harming the planet.
➡️ Bitcoin’s current short-term volatility is a symptom of the early stage of its adoption and the asymmetrical distribution of the knowledge about its real value and uniqueness.
➡️ And lastly, the existence of the „Bitcoin organism“ is very real. It’s physical, it’s tangible, it’s digital but not virtual. And this existence alone is perfect proof that it must have value.
I had this realization 5 years ago. The good news is: it is not too late to have this realization today – and be better equipped to evaluate the most asymmetric trade of our generation.
⚠️ None of the above is financial advice. Do your own research.