Proof of Value – Bitcoin vs. National and Crypto Currencies
The biggest accomplishments to date for Bitcoin include:
Reaching a value of $0.08 in July 2010.
Rising in price from $0.08 to $1 in early 2011 was bitcoins first real achievement
The climb from $1 to $10 was a huge boost towards people’s confidence in the protocol.
But to have people agree that bitcoin is worth $100 from the previous $10 valuation was almost a miracle at the time.
The amount of crypto currencies that can or will do something similar are close to (not quite) zero. This is why we Don’t value crypto on promises, plans or goals.
After the World agreed that bitcoin is worth $100 it doubled again and again up to $1,000 per coin.
During this entire time, Bitcoin continued to be a secure store of value that can be transferred between two parties without the need for third parties. Regardless of how the world valued it against the US dollar, bitcoin secures and transfers value.
The Federal Reserve printed $10 trillion US dollars during this same period, that was added to the US debt of $21 trillion. The global debt is approximately $247 trillion as of 2018.
Bitcoin has stored and transferred value through solving math problems every 10 minutes on the blockchain for nine years, while “crashing” to $3,200 in value in 2018.
Bitcoin is still the most valuable asset of the last decade.
The “team” that created bitcoin (Satoshi Nakamoto specifically) does not have any incentive to “pump” bitcoin like “new coins” that show up every 10 minutes.
Many believe that Nakamoto is deceased. If he is alive and didn’t move his originally mined coins during the 2017 bubble, ($10 billion in value at the peak) their is very little chance his coins are EVER moving.
People valuing pre-mined coins like Ripple, Stellar, Dash and hundreds of others as “similar” to bitcoin are missing the point entirely.
There is “value” in pre-mined coins in certain industries (banks), that doesn’t compare in any way to a decentralized store of value that is the first new asset class created by and programmed to serve everyone involved with the asset.
Historically, “new assets” have been created by banks, approved by regulators and sold to any customer that pays the fee. Like CDO’s were.
Bitcoin cannot be confiscated. Houses, stocks, bonds, bank accounts and pre-mined shitcoins can be confiscated.
Alt-coins “value” will always be based on the current price of bitcoin. There are no institutional investors pushing Fiat into shitcoin projects. There is only bitcoin being gambled on new ideas and projects that can’t get institutional funding.
The IMF was formed at the Bretton Woods Conference that made the US dollar the reserve currency other nations would peg their currencies to. It also guaranteed that gold would back the US dollar, until the 70’s when Nixon’s team decided that was really hard to do.
Rather than backing the dollar with gold, they convinced everyone to just agree printing dollars was “just as good” as gold until a better plan could be formed. Nixon wasn’t an economist or much of a President, like most politicians he probably assumed “the next guy” would figure out how to solve that problem.
In 2015 when Greece was voting “no” on an IMF loan bailout, some were concerned about the $84 Billion in IMF loans owed by 79 countries.
These are all debts the citizens hold on their balance sheets, for their grand children’s children to “pay” some day.
Bitcoin adopters can’t deny golds amazing ability to store value over the last few centuries. If it weren’t difficult to store and move gold, we would probably own some of it. Gold can be more easily confiscated, a little more difficult to mine and will be difficult to convince the digital world to adopt as fiat dies.
Some people try to start a gold rally whenever bitcoin price fluctuates. It’s just so hard to send someone in India 0.0034 in Gold these days, we can’t get into it.
The world is re-thinking what money is. Governments creating “coins” digitally to solve their fiat problem, will be a nail in the coffin for central banks “solutions” to monetary policies people can’t store wealth in.