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A lot of smart tech/investor folks I know still think that investing in Bitcoin is akin to investing in Pokémon cards or fancy watches.
In honor of BTC hitting all time highs, I’m going to try to break down why #Bitcoin
matters without using any crypto jargon. Here goes... (1/)
In honor of BTC hitting all time highs, I’m going to try to break down why #Bitcoin
matters without using any crypto jargon. Here goes... (1/)
Bitcoin is the first time that digital scarcity has ever existed.
It’s extremely easy to duplicate things in the digital realm, whether that’s a song, a video, or a meme. (2)
It’s extremely easy to duplicate things in the digital realm, whether that’s a song, a video, or a meme. (2)
Scarcity is a hard problem even in the real world. How do you really know the Yeezys you got from StockX are authentic? How do you know the dollar in your wallet isn’t counterfeit?
Bitcoin ensures scarcity by using cryptography to track all transactions and ownership. (3)
Bitcoin ensures scarcity by using cryptography to track all transactions and ownership. (3)
As a result, Bitcoin is arguably the “hardest” form of money that has ever existed. A hard currency is characterized by its scarcity and difficulty in creating more of it. (4)
When hard money comes in contact with a softer money (money that’s easy to produce or counterfeit), the latter tends to get devalued. (5)
We’ve seen this in history time and time again such as when European invaders came into contact with indiginous people using beads for currency. Europeans mass manufactured beads, taking their goods, devaluing their currency and leaving them impoverished. (6)
While the US Federal Reserve can print unlimited amounts of dollars (and are currently doing so), there are only 21 million Bitcoin and there will never be any more. (7)
Bitcoin is also the cryptocurrency with the longest track record, the most mature investment thesis (digital gold) and has no leader or organization behind it. Thus it is very hard to displace or shut down. (8)
IMO, this makes BTC slightly more interesting than a holographic Charizard 
(fin)
(fin)
