A lot of the voices in the cryptocurrency space keep yelling “buy Bitcoin” or “stack sats”. But why exactly does anyone need to buy Bitcoin? Other than the Bitcoin price increasing and giving a person a lucrative, yet risky investment opportunity, what value premise does this cryptocurrency hold?
Have you ever gone to a bank to deposit money or change a small detail, and have they made you wait for at least an hour just to tend to your needs? Have you ever asked for a particular change to be made but the bank just asks for 10 different documents attested and scanned? This incredibly bureaucratic process that is supposed to make things more efficient actually makes everything complicated and time-consuming. Bitcoin fixes this.
You don’t need to verify your identity or submit a number of different documents to use Bitcoin. The fundamental premise is that if you just want to transact or transfer money, you will be allowed to do so. At the same time, you can’t hide from anything or anyone. Your transactions are immutable and transparent, meaning anyone can see them using a block explorer. Of course, they don’t know it’s you because it isn’t tied to your identity, but the end game is that nobody can hide anything people are looking for.
The ability to organize commerce without an intermediary is probably the fastest way to make the entire value transfer process more efficient and trustworthy. Instead of sending your money from the U.K to Japan through 4 different financial intermediaries and paying a $70 fee, you can now send money anywhere across the globe to anyone with a Bitcoin address for a flat fee based on the auction mechanics of the blockchain.
Many underestimate these simple implications of Bitcoin. The end goal is to make everyone’s lives easier and give them back control of their money, data, and lives.
This aspect of investing in Bitcoin is a little more well-known. Bitcoin is undisputedly the best-performing asset class of the last 10 years – and it has only existed for 11 years.
Bitcoin’s disinflationary supply schedule, immutable economic framework and money supply, and inability to censor create a near-perfect economic thesis for investment.
By design, network economics is deflationary, which means the Bitcoin price is naturally inclined to continue increasing and increasing. Governments use inflation as a means of funding their own expenditure, but if there is no government (in terms of Bitcoin) then there is no reason to implement a model where the unit of currency devalues over time.
If you consider the built-in scarcity model, it becomes very obvious with more and more research that Bitcoin is the ultimate value accretion tool created thus far. It makes sense to think of Bitcoin as a more refined version of gold, where we had the opportunity to look at the mistakes made, rectify those, and even go back and change certain natural factors like supply and production rate.