Why Bitcoin Will Become the Global Reserve Currency
There are only two things verifiably scarce in life: Time and Bitcoin.
Bitcoin is the perfect money because it is:
- Fungible, 1 Bitcoin = 1 Bitcoin
- Durable, lasts forever
- Portable, can carry it anywhere even in your brain
- Divisible, 100,000,000 Satoshis in each BTC
- Secure, cannot be counterfeited
- Transactable, settlement network that can process 500,000 transactions/day
- Programmable, computers/ai can spend and store it natively
Trending Cryptocurrency Hub Articles:
1. Five stupid ways to lose your bitcoin millions
2. The Bitcoin Bubble Post Mortem
Process of Becoming Money
Bitcoin is currently between 1 & 2
1. Collectible — “This is cool.” Value goes from 0 to .01
a. Seashell
b. Silver
c. Gold
d. Glass Beads
2. Store of Value
Stores value over time. The more people that use a specific money as a store of value, the more the price will appreciate in the short term. A good money retains that value by not having an easy way to inflate the supply.
3. Medium of Exchange
Once a money is established as a store of value, it becomes useful as money we know of today.
If you want to buy something, a seller will only accept a store of value they trust.
4. Unit of Account
Accounting and Business transactions are all denominated in BTC.
Ex: 1 House costs 0.01 BTC.
The Bitcoin Bubbles
Yes, there have been multiple Bitcoin Bubbles.
1. $1 -> $30 -> $2.30 (x 30)
2. $2.30 -> $250 -> $62 (x 108)
3. $62 -> $1150 -> $154 (x 18)
4. $154 -> $780 -> $475 (x 5)
5. $475 -> $19,700 -> ? (x 41)
Why Not Other Cryptos?
1. None are as decentralized/secure.
Any coin running same hashing alg as Bitcoin is at risk to be attacked. Coins will smaller network values can be a target for attack as well.
Any centralized coin can have it’s money supply/account balances altered at will.
2. There is no other “Bitcoin”/money.
a. Ethereum has permanent inflation and is trying to be “oil” for dapps. Even if successful, the value of 1 Ether is unknown.
b. Ripple is a centralized settlement network for banks. Founders/Company can inflate supply at will.
c. Bitcoin Cash is a hard fork of Bitcoin that failed to gain consensus. Centralized actors like Roger Ver and Craig Wright can alter supply/do additional hard forks at will. Also at risk for 51% attack.
d. EOS is centralized/weak. Not money.
e. Stellar is centralized/weak. Like Ripple.
f. Litecoin is weak. Mainly used as a testnet for future bitcoin implementations
g. Monero is weak. Anonymous money. Development very centralized.
h. IOTA is centralized. Doesn’t work.
i. Etc…
Conclusion
While the current state of Bitcoin is enough to give the entire world a truly scarce form of money, it’s code can constantly be improved to meet the growing needs of future civilization.
Bitcoin is at least a 10x improvement over fiat currency and gold, and it has no reason to worry about being replaced as it will continue to dynamically improve through time.
