ReWu on Nostr: Bitcoin is decentralized, digital money that lays the foundation for a fair and ...
Bitcoin is decentralized, digital money that lays the foundation for a fair and stable value system. The quality of money is measured by three key functions:
1. Store of Value – Money must hold its purchasing power over time.
2. Medium of Exchange – It should be easy to transfer and widely accepted for trade.
3. Unit of Account – Money acts as a standard to measure the value of goods and services.
Our current money system only partially fulfills these functions. Inflation and manipulation of the money supply cause it to lose value, making it less reliable as a long-term store of value.
Bitcoin, on the other hand, fulfills these functions through its core properties – scarcity, decentralization, and immutability. Right now, Bitcoin mainly acts as a store of value and is increasingly used as a medium of exchange, especially with second-layer solutions like the Lightning Network.
Over time, Bitcoin could fully cover all three functions and become a stable, tamper-proof money system that operates without government interference.
While traditional money loses value through inflation, Bitcoin’s limited supply of 21 million units offers a reliable alternative – free from arbitrary money printing. Its value comes not from promises, but from clear, verifiable rules and trust in mathematical security.
Bitcoin’s development is similar to how gold became money – first as a store of value, then as a medium of exchange and unit of account. Those who understand scarcity and market principles see Bitcoin not just as technology but as a natural step forward in the evolution of money. #Bitcoin
1. Store of Value – Money must hold its purchasing power over time.
2. Medium of Exchange – It should be easy to transfer and widely accepted for trade.
3. Unit of Account – Money acts as a standard to measure the value of goods and services.
Our current money system only partially fulfills these functions. Inflation and manipulation of the money supply cause it to lose value, making it less reliable as a long-term store of value.
Bitcoin, on the other hand, fulfills these functions through its core properties – scarcity, decentralization, and immutability. Right now, Bitcoin mainly acts as a store of value and is increasingly used as a medium of exchange, especially with second-layer solutions like the Lightning Network.
Over time, Bitcoin could fully cover all three functions and become a stable, tamper-proof money system that operates without government interference.
While traditional money loses value through inflation, Bitcoin’s limited supply of 21 million units offers a reliable alternative – free from arbitrary money printing. Its value comes not from promises, but from clear, verifiable rules and trust in mathematical security.
Bitcoin’s development is similar to how gold became money – first as a store of value, then as a medium of exchange and unit of account. Those who understand scarcity and market principles see Bitcoin not just as technology but as a natural step forward in the evolution of money. #Bitcoin