Student Of Life on Nostr: Bitcoin solves a problem that’s as old as humanity itself. It solves the problem of ...
Bitcoin solves a problem that’s as old as humanity itself. It solves the problem of money.
Gold was the best money for most of history because it was scarce, and durable. People traded it not for what they could make with it but for its monetary properties.
Humans solved golds problem of portability and disability with paper derivatives and central banking and, as a result, nobody uses gold as a medium of exchange anymore.
Unfortunately, with centralized control comes the cost of scarcity since more paper can be printed. Bitcoin solves the problems of fiat scarcity and centralization while improving the benefits of portability and divisibility.
This is the value proposition of bitcoin and the early adopters that recognize this will have increased risk (volatility) but with higher potential reward. The late adopters will have no risk but will see smaller returns.
Gold was the best money for most of history because it was scarce, and durable. People traded it not for what they could make with it but for its monetary properties.
Humans solved golds problem of portability and disability with paper derivatives and central banking and, as a result, nobody uses gold as a medium of exchange anymore.
Unfortunately, with centralized control comes the cost of scarcity since more paper can be printed. Bitcoin solves the problems of fiat scarcity and centralization while improving the benefits of portability and divisibility.
This is the value proposition of bitcoin and the early adopters that recognize this will have increased risk (volatility) but with higher potential reward. The late adopters will have no risk but will see smaller returns.