"Bitcoin has no value" 🙄
It does. Here's why.
Bitcoiners,
Many bitcoin skeptics claim bitcoin has no intrinsic value and its price is derived purely from speculation.
Here is a list of 5 properties that give bitcoin value which can help skeptics understand why it's currently underpriced and should reconsider buying some for themselves:
Scarcity
Utility as money
Decentralization
Settlement finality
Censorship resistance
Property 1: Scarcity
Bitcoin has a limited supply of 21 million bitcoin to ever be created. The scarce nature of the asset without the ability to manipulate the supply in the future gives it a unique quality compared to any other asset.
Property 2: Utility as money
There are millions of people experiencing hyperinflation throughout the world right now such as those living in Turkey with an official inflation rate exceeding 80% in 2022. Developing countries use bitcoin for transactions because their currency is constantly debased.
Property 3: Decentralization
Over 10,000+ nodes are distributed across the earth broadcasting and verifying transactions. Bitcoin miners are also highly distributed around the world validating transactions. The decentralized aspect of bitcoin makes it resistant to attacks from bad actors such as unenthusiastic governments.
Property 4: Settlement finality
Local, national, and world banks use systems such as Fedwire that often take days and sometimes even weeks to reach final settlement. Bitcoin reaches final settlement in about 10 minutes. The Bitcoin protocol is a superior technology for settlement compared to current payment systems.
Property 5: Censorship resistance
Bitcoin is for everyone. This means you don’t have to live in a certain location, follow a certain political affiliation, be a certain race, or be above a certain age to use the bitcoin network. Billions of people are currently unbanked (meaning they do not have the ability to get a bank account for the reasons listed above) and need access to a permission-less banking technology.
Lastly, I highly recommend reading more about the need for censorship resistant money in Bitcoin Magazine's print magazine - The Censorship Resistant Issue.
Happy Sunday,
-Pod
If you find any value in The Bitcoin Letter, please subscribe and tell a friend. By subscribing, you will be sent easy to understand information about Bitcoin along with any relevant news daily. That’s it. IT IS FREE AND I WILL NOT SPAM YOU!
BUY BITCOIN RIGHT NOW
I personally use Swan Bitcoin to purchase Bitcoin! Use the link below to get $10 free dollars worth of Bitcoin. Takes less than 5 minutes to sign up and I get a small commission :)
Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.