20 Reasons To Own Bitcoin (Part 1)
The First 5 Reasons To Own Bitcoin
IN TODAY’S REPORT
What we cover: NONCE SENSE Edition. Bitcoin Essay, Part 1.
Reasons To Own Bitcoin (#1 through #5)
|1| Cryptographically-enforced ScarcityWe live in a digital copy-paste world. Anything digital can be copied ad infinitum. That is, until January 2009 when the pseudonymous Satoshi Nakamoto launched the first fungible, copy-resistant digital asset. Bitcoin gave our everything-digital-is-free world the incredible gift of cryptographically-enforced digital scarcity. There will never be more than 21,000,000 bitcoin no matter the global population, no matter the USD in circulation, no matter how many people want to own it. 21,000,000. Never more.
|2| Outside MoneyUnless you own and custody your own Bitcoin, most likely everything you own is inside money. Inside what, you ask? Inside the government-sanctioned, regulatory-based financial system. In case you are wondering whether the author is a torch carrying, anti-Government, anarchistic agent of chaos, you’ve got the wrong idea. I like paved roads, police available at the tap of 9-1-1 and too many other aspects of our society to mention here. But please know that inside money is subject to forces beyond your control or consent. Bitcoin is beyond the control of any government, beyond the control of any political force benign or otherwise. As government-controlled money continues to be devalued, no nation state controls Bitcoin and its immutable supply characteristics. Bitcoin is the ultimate outside money.
|3| Superior to GoldGold has been the world’s hard money asset for generations, appreciating even after Nixon jettisoned the yellow metal as the backbone to the U.S. Dollar. And yet exactly how much gold exists? Even the best answer is merely an estimate. Why? Because while we know that mining gold is a slow and tortuous process in several respects, we simply cannot know the true supply of gold. In sharp contrast, Bitcoin’s fixed supply is precisely known even before it’s fully available. Bitcoin requires no protective fortress, remains weightless, and can be held in one’s mind. Bitcoin will eclipse the market cap of gold in the not too distant future for these reasons and more.
|4| Values Your TimeIt may be hard to fathom, but inflation is an artificial construct, not a natural law. A major through line of human history is technological advancement. One of the main characteristics of most technological advances is the introduction of a new efficiency, meaning something that saves time. Time — as all humans who get to live beyond childhood increasingly realize — is the most precious commodity in existence. Advances in technology therefore are tools which save time. Bitcoin is another major technological advance, introducing money which is separated from the control of the State for the first time ever in human history. While this has too many implications to outline here, because Bitcoin exists wholly outside of the control of any nation’s government, it remains untouched by the political whims and ill-conceived wars of the state. In modern terms, the U.S. Dollar continues to lose its value in the face of a debt-burden which will never be repaid and a mounting interest payment burden. This will surely lead to more money printing, more debasement. The debasement of the USD takes the literal representation of your work/time/life energy — i.e., money in the form of dollars — and lowers its value. This is theft, and the debasement of your time. Inflation is a reverse time machine, stealing your time after you’ve already invested it. That work you labored over and got paid for? Well now it’s worth less. In sharp contrast, Bitcoin values your time provided you hold Bitcoin for enough time. While this could always change in the future, its intrinsic scarcity and continued network adoption make that highly unlikely.
|5| Trades 24/7/365Bitcoin trades 24/7/365. In short, the asset never takes the evening or weekend off. While this leads to [1] more volatility as a function of more time, and [2] an expanded distribution of prices (i.e., fatter tails), the upside potential is also expanded. Bitcoin is the best-performing asset since its inception. This is partly due to its ceaseless nature. While it’s easy to groan about a market that never sleeps, its price discovery continuum also never sleeps. And that’s a wonderful thing.
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