Bitcoin is a, decentralized, scarce, global, transparent, non-sovereign mechanism for exchange. It respects no borders, it respects no class, and it certainly respects no means of confiscation.
It is the fairest and most democratic invention of money, and it will make you change the way you think about money.
But before we discover the monetary values of Bitcoin let’s take a brief look at what money actually is.
What is Money?
Before we look into Bitcoin, it’s always good to have a sound understand of what we think of as money.
When we think of money, most people think of the pieces of paper that are issued by central banks, usually with a head of state or a national, historical hero printed on them.
It’s not backed by gold or silver anymore, so what is it that gives government paper value? It’s faith in both parties that that bill is worth what we both believe it to be worth.
Sure enough, if I have a dollar and go to the $1 shop, I can buy a product from there, and the tender and I agree that the bill is worth $1 and so an exchange can easily be made.
But why? That dollar cost about $0.06 to make, and with most dollars not even needing to be printed, it makes each dollar printed worth actually less than a penny. So, what actually makes it worth a dollar?
It’s the faith we have in the central authorities that keep printing them. They say it’s worth a dollar so we take it as that. Nothing to back it up apart from tanks, police forces and a willing population.
Money is controlled in every single way by the central banks and governments. They print as much as they want, with no consequences. It’s used to pay for wars, fund politicians business interests, and banks launder hundreds of billions a year with little consequence.
That willing population is dwindling, however. Sick of corruption, war and lies, and they now have a different option for money.
Bitcoin Will Make You Reconsider What Money Is
Bitcoin is Decentralized Money
The Bitcoin network is decentralized. This means it has no central point of control or failure. Think of any government, central bank, or even company: they’re all controlled by a few rich people and whether its for the good or bad, their decisions manipulate the things they control.
Nobody controls Bitcoin. Everything is run by the network of miners and nodes, which have to be in a majority of consensus if anything is to be added to the blockchain. That includes everything from transactions to protocol upgrades. If the majority of the network disagrees with anything, it will not be added to the blockchain.
The power of Bitcoin is not in the few, but in the community who work on it. It is democratic money.
Bitcoin is Scarce
How many dollars get printed into existence? The Fed recenty announced they would buy unlimited treasuries (printing). There’s absolutely no limit to the printing they will do. One day all this printing will dilute the value. All by design.
Bitcoin has a limit of 21 million coded into it, and because of the decentralized consensus mechanism, this will never change. We know exactly how many there are now and in the future. There is no other asset like this. Not even gold.
Sure gold is scarce, but we don’t know exactly how much gold there is. As unlikely as it is, it is possible that more gold could be found tomorrow than we have on earth.
Gold can also be made by forming the right elements together. This is much more expensive than what gold is worth but imagine as technology makes it cheaper to make gold…. Hmmm.
It’s unlikely that gold will ever be made cheaper to make than its value, but the fact is we don’t know for sure. We know for sure how scarce Bitcoin is and always will be.
Bitcoin is Transparent Money
The financial system is confusing. Confusing by design. The average person isn’t supposed to know how it all works.
Henry Ford once said, ‘It is perhaps well enough that the people of the nation do not know or understand our banking and monetary system, for if they did I believe there would be a revolution before tomorrow morning.’
That was almost 90 years ago, and with the age of information upon us people are starting to understand the monetary system, and thanks to Satoshi Nakamoto that revolution is underway.
Banks and governments purposefully confused us for long enough, and the way they just print their way out of every financial crisis it makes you wonder how they got away with it for so long.
Unlike government money, Bitcoin is transparent. Every coin minted is worked for, and every single transaction in its history is recorded on an open ledger that anybody can audit. This makes it a useless way to buy illegal goods, just ask the former FBI agents who stole bitcoins while investigating the Silk Road case.
Bitcoin is a Non-Sovereign Money
Sovereign money has always ended up bust. Every government from the beginnings of time has hyperinflated their fiat currency one way or another, and every one now and in the future will end the same way.
We need a money that isn’t controlled by the few, and in the digital age, we need a money that iisn’t confined by political boundaries.
Bitcoin is non-sovereign money. Governments do not and cannot control it. And with the printing press working overtime to get us out of this mess in the short term, it’s a good job we have an option that isn’t controlled by the inept manipulators.
We are all divided by political lines and we all have our own paper money we have to use within those lines, but Bitcoin isn’t just a non-sovereign money, it’s also a borderless money.
The Internet knows no lines, especially with vpns, and at just under 5 billion users it’s the biggest society in the world: a non-sovereign state if you will.
And because anybody with an Internet connection can participate in the Bitcoin economy, it has the capabilities to grow much bigger than the financial system.
Like the Internet, Bitcoin doesn’t do dividing lines, and it’s open for business twenty-four-seven, it’s always liquid, and anyone can send anyone else money.
This isn’t possible with the legacy world, in which most people aren’t included. Bitcoin is a non-sovereign money that allows anyone to send anyone payment without prejudice.
Bitcoin isn’t perfect. But when we compare it to what we think of as money it emanates perfection. Being a non-sovereign, decentralized money, Bitcoin gives power back to the many.
It is a hedge against the global monetary system. It is a protest against the government system. It is a revolution.
Bitcoin is how money should have always been, but it’s better late than never.
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.