February 24, 2021

What is the value of bitcoin (some answer)

In one of the crypto topics, they asked “anonimuz, why do we need this bitcoin? it's a bubble for me. ” I wrote a post, and it turned out to be a long read. Well, I'll try as a writer.

What is the value of money? Why do you need money?

Answer: money gives only one thing - opportunities.

But modern money has two problems that limit its options:

1) Money can be taken, arrested, "frozen".And the rich always think about it - all the hemorrhoids with diversification of investments, the search for reliable banks, the creation of stash in gold, investments in land and real estate - this is a desperate struggle with the growing chances of losing money.

2) The emission of money is endless. We are all here looking for assets that give more than inflation eats - searching, choosing, entering and exiting is a waste of time fighting inflation.

As a result of these two types of weaning controlmoney - people spend a lot of time and effort, and besides, they lose what they were collecting for. “Well-parked money” cannot be pulled out of your pocket in one minute. It is necessary to look for a buyer for the "asset". It turns out the "opportunities" for which the money was earned are reduced. In addition, after shoving money into 20 "stashes" - the risks grow that you will inevitably lose in at least one stash.

Bitcoin is the only "commodity" (not money!) on a planet that has the properties of ideal money to save. Generally one. And at the same time - the only "product" which is not only impossible to pick up from a person. When used correctly, it is impossible to even know that a person owns bitcoins. Here a man buys a hamburger at McDonald's, and pays with a credit card with 100 bucks. And at the same time carries a billion with him. You will not see this billion, even if a pathologist is engaged in the search.

Even gold is constantly mined and becomesmore and more. Shares - an additional issue is not a problem at all (and there are also risks that the company will go bankrupt). The dollar is ridiculous. Probably if it were not for computers where it costs nothing to add zeros, now all the printing houses of the world would be loaded with only one dollar seal ordered by the US government. Book and newspaper publishing would have been halted entirely for endless QEs and mitigations.

In short, a "product" with such properties in historyhumanity did not exist yet. All the rich, or just people with savings, are well aware that any of their wealth is always “somewhere”, and that it can be taken away from them. And owning bitcoin gives them almost all the possibilities that owning their "regular money" gives them. For rich people “ordinary money” is their assets with varying degrees of risk. And bitcoin for them is another such asset with its own risks, but with fundamentally new opportunities that none of their "ordinary assets" have.

Believe me, the value of new opportunities for the richgrasp instantly. From the beginning of communication “are you in the subject? tell us what kind of bitcoin is this? ”, to the substantive questions“ Where to buy? Sell ​​it there? Can I tell him? All or half? Will he be able to withdraw to the bank? " 20 minutes pass the maximum. And on the way is a new generation of the rich - young people are approaching 30 for whom “bitcoin has always been and has always cost thousands of dollars”. Mentally, it is more real for them than a “paper ounce of gold” traded on a “normal” (for a smart lab) exchange.

Well, about the bubble.Bitcoin is always both a bubble and a non-bubble. The “normal” component of its price is the payment of people for the opportunities that it gives, or at least they think that it gives. And the bubble component is speculation, manipulation, crowd dispersal, crowd disappointment, and all the accompanying movement. The bubble component is 5-10 times larger than the “normal” component and it blocks the “normal” one. But seeing bitcoin as just a bubble is missing out on some opportunities that other commodities or assets don't provide.