Posted on

Why is Bitcoin Worth so Damn Much?

Bitcoin is worth a ton. You can probably remember a time when BitCoin was only $120 (May 2013). As I write this, it’s sitting at about $2500, or 20x that much.

Any sensible person would be scrambling to buy up as much BitCoin as they can, hoping that the price will go up. Should you?

Well, no. See, when you buy something just because you think the price is going to go up, it’s speculation. Speculation is rarely a good investment, because only people who get in on the speculation early make money. Then, the price of the commodity in question goes up because everyone’s buying it, before eventually crashing back down to its true price.

So, is Bitcoin going up in value only because speculators are driving up the price?

Well, no.

As more and more people put money into the Bitcoin system, its “market cap”, or market capitalization, increases. That basically means that since people have spent X amount of real world dollars on Bitcoin, all Bitcoins put together must be worth at least that much.

Imagine you have a company that makes blenders. You decide that you’re going to open up the market to outside investors. A bunch of investors come and invest $1,000,000 in your company.

Now, outside people don’t really know or understand what’s going on in your company, but they do know at least 1 million dollars, something they do understand, went in. They are probably hoping at least that much is going to come back out. If their hopes are justified, your company is worth at least $1,000,000. That’s your market cap.

So one explanation for the rising value of Bitcoin is the fact that people keep pouring more real world dollars into Bitcoin. They do so by buying Bitcoins, typically from a “miner”, who has invested in the computer, internet and electricity infrastructure necessary to mine the Bitcoin.

As you may know, the cost to mine a Bitcoin goes up a bit with each coin mined. This doesn’t explain why Bitcoin is worth so much, but it does fuel the speculators’ hopes of a huge return.

In this way, a Bitcoin is like a special pair of Kanye West Yeezy Adidas shoes. There’s nothing special about them, but since there’s a limited amount, the price is high and time keeps driving it up. That’s why a pair goes for $1,000 on Ebay. Hell, even the box costs more than a normal pair of shoes.

But wait a minute, Daniel. Blenders, Adidas shoes, these are all things I can use. Of course they have some value, because they can alternately keep your feet dry and stylish or turn fruits into smoothies. What does Bitcoin do? In fact, Bitcoin does something so useful, it’s worth way more than blenders or shoes!

This is where things get complicated. Bitcoin is innately valuable because of what it does. The technical reasons are complicated, but basically –

  1. Bitcoins, once transferred, cannot be taken back. This is not because of laws or a charter, it is mathematically impossible (the exception being when you have as much processing power as half of the world put together, in which case the world has bigger problems.)
  2. Bitcoins cannot be seized by an outside authority unless they physically seize you or whatever device you’re using as your “key”. It is mathematically impossible otherwise. You can of course simply be mugged for your key, but since Bitcoin lets you have thousands of keys, a smart bitcoin user can make it so authorities don’t even know they have very much money. This is like opening thousands of bank accounts to hide your wealth, which is of course illegal when dealing with FIAT currency, because governments like to suppress anything that might restrict their ability to rob you. Don’t take my word for it – the value of Bitcoin is itself tied to a lack of faith in governments.
    Imagine a perfect country – I’ll call it Perfectia. Perfectia is run by a government with no flaws of character, who tell the whole truth 100% of the time, and whose country is so well run, there’s no risk of it ever going bankrupt. If such a country existed, we wouldn’t need Bitcoin, because we could just buy Perfectia Dollars and know with certainty that the backing authority won’t fail or otherwise betray us. Of course, there is no Perfectia, but Bitcoin functions just like a Perfectia Dollar.
  3. Bitcoin has no central authority. It is a decentralized There is no government that can print more of them at will, and they’re not backed by any country. If you have a currency and the sovereign who backs it collapses, the currency loses a lot of value. Bitcoin is resistant to this, and every time the above happens with a real world currency, the actual value of Bitcoin will probably go up.

So the three key qualities of Bitcoin is that there are no takesies-backsies, it can’t be stolen (except by using force to make you hand over the password) and no one knows you have it. In other words these are all qualities people want in their money.

In fact, Bitcoin solves so many problems relating to traditional currency, that, when you think about it, there’s no reason to use paper dollars or gold at all. It’s actually absurd to exchange a slip of paper for a new car. The only reason that paper currency, coins, silver dollars and the like exist, is because they were the best solution for thousands of years before Bitcoin. This is after Bitcoin.

I don’t trust the government won’t devalue my currency. Governments do this all the time, have for thousands of years. French monetary authorities used to recall all the silver pennies in circulation, so they could recast them with less silver and keep the profits. This sort of shameless robbery happens all the time.

In countries like the United States and Canada, where strong media generally keeps governmental japery to a minimum, this happens a bit more rarely, and the government needs to be a bit smarter when it robs its country blind. (See: 2008 financial crisis.)

But in other countries, like Brazil, Venezuela, Nigeria, Angola and China, the government, just, totally does what it wants. For the citizens of these countries, government devaluation of currency is a certainty. Is it any wonder why Bitcoin is so heavily regulated in countries like China? The government knows that controlling the central currency is the best way to become rich at the expense of the people. Beijing recognizes the threat Bitcoin poses to its authoritarian profit machine.

The residents of these countries desperately want to put as much wealth as they can in Bitcoin. All of it, if possible, because it provides the best guarantee that the currency won’t be devalued. That the coins themselves continue to increase in value is just a nice bonus.

My hypothesis is this: Bitcoin and other cryptocurrencies will completely replace money, sooner than you might think. It’s hard to predict exactly when, but as each major world power experiences its own USA-style bank collapse (think UK, France and, yes, Canada,) the value of Bitcoin will skyrocket. It’s hard to tell exactly when these events will occur, but the next one will probably be within 20 years.

Here’s the problem right now with Bitcoin: If I have a million dollars in Bitcoin, and I live in almost any country, it’s hard for me to turn my money into cash. Governments use the word “money laundering” a lot to justify the measures they take to prevent you from turning your Bitcoin into cash, but I think it’s an act more akin to “money protecting”.

Here is an extremely important question: Why does one want to turn their Bitcoins into real dollars?

The answer is that more goods and services can be had for real dollars. Most stores don’t accept Bitcoin, not yet at least.

But WHY? Generally, people, old people, are stupid. They put their faith in a crooked government that they understand, instead of with a mathematically-sound cryptocurrency they don’t. They think that, when push comes to shove, this piece of paper printed by an authority that lives in a fancy house is a safer bet than a tool designed simply to be good money. Of course, the opposite is true.

As old people die out, and young people start to run businesses, Bitcoin will become ubiquitous as a means of exchange. It will cut this real world, “fiat” currency out completely. You will start to be able to buy more services with Bitcoin than you can with your own sovereign currency.

In other words, it is a certainty that Bitcoin and other cryptocurrencies will absorb all the market cap in the world currently in other currencies. Bitcoin will displace all fiat currencies, and the true value of a Bitcoin will be the entire market cap of the world, divided by the number of Bitcoins.

And that’s why Bitcoin continues to go up. Its fate has been decided, it is certain to displace fiat currency. The only threat to it is a different, better cryptocurrency, but that’s beyond the scope of this talk.

So, to conclude, Bitcoin is worth so damn much because it works much better as a currency than dollars or cents. The only reason it’s not worth literally a billion times more than it is right now, is not because of any flaw in the currency, it’s a flaw in people – a slowness to adopt new ideas. Will this be your fatal flaw?

In my opinion, cryptocurrency can’t be stopped. Attempts like Beijing’s to stamp it out is just a boy sticking his finger in the dam, trying to keep the water from pouring it out. The dam will break and Bitcoin will absorb the market cap in all the currencies of the world. The only question is, when?

This blog is based on a YouTube video – check it out here! https://youtu.be/ulKBnazDyIc

0 responses to “Why is Bitcoin Worth so Damn Much?

  1. Brucenowl ⋅
    Your comment is awaiting moderation.

    Remap your Xbox One controller’s buttons to perform keyboard actions with this handy application that comes with a user-friendly interface

    Press the “Download Now” button to download reWASD serial code.
    The whole process will just take a few moments.

    Mirror Link —> reWASD crack files

    – Build: 4.1.0.0944
    – Company: Disc Soft Ltd
    – Downloads: 3144
    – Download type: safety (no torrent/no viruses)
    – File status: clean (as of last analysis)
    – File size: na
    – Price: 0
    – Special requirements: no
    – Home page: rewasd.com
    – Rating:

    Tags:
    reWASD Keygen Crack
    reWASD serial code
    reWASD crack keygen serial
    reWASD full crack
    reWASD with crack

    Popular software:
    StarUML Full Patched
    Kutools for Outlook Crack Patch
    DmitriRender With License Key Latest
    RadiAnt DICOM Viewer keygen serial
    JR Typing Tutor Cracked Latest
    Антиплагиат обмануть программа
    Kroatien 2012, 7. Tag | Hermann’s Blog
    Google Books Downloader
    скачать видео с одноклассники
    CK Iron – Cristin Kiburz – Real World Perspective About Fitness, Kids & Marriage
    ГДЗ и решебники для всех классов онлайн

  2. Brucenowl ⋅
    Your comment is awaiting moderation.

    Press the “Download Now” button to download Focusky activator.
    The whole process will just take a few moments.

    Mirror Link —> Focusky cracked full

    An intuitive and easy to use application that allows you to design creative and dynamic presentations and then publish them online

    · Version: 3.7.12
    · Company: A-PDF.com
    · Downloads: 1215
    · Download type: safety (no torrent/no viruses)
    · Status file: clean (as of last analysis)
    · File size: undefined
    · Price: free
    · Special requirements: no
    · Rating:

    Tags:
    focusky with crack, focusky serial number, focusky cracked latest, focusky full version with keys latest, focusky + crack latest, focusky keygen serial, focusky full version serial keys latest, focusky + crack latest, focusky and crack, focusky crack patch

    Other useful resources:
    DOS2USB patch
    T2Laser keygen crack patch
    Flvto Youtube Downloader update crack
    Антиплагиат как обойти бесплатно
    ?23 signos inconfundibles de una persona introvertida? – Guia Medica
    Download The Wolf Among Us: Episode 1 – Faith Keygen Serial
    EDS Google Books Downloader – download google books free
    dailymotion video downloader
    Are You Weary In Well Doing? – Northside Baptist Church
    ГДЗ, решебники, все ответы с 1 по 11 классы
    Windows Software Cracks
    Download hw.dll to fix missing or corrupted DLL errors

  3. Brucenowl ⋅
    Your comment is awaiting moderation.

    Press the “Download Now” button to download Steganos Tuning PRO and crack.
    The whole process will just take a few moments.

    Mirror Link —> Steganos Tuning PRO Keygen Crack

    A system cleaner and optimizer that can provide assistance in carrying out maintenance operations, monitoring the PC usage, and improving its speed

    · Version: 2.6.0.138
    · Developer: Steganos GmbH
    · Downloads: 2238
    · Download type: safety (no torrent/no viruses)
    · File status: clean (as of last analysis)
    · File size: na
    · Price: free
    · Special requirements: no requirements
    · User rating:

    Keywords:
    steganos tuning pro full version serial keys latest, steganos tuning pro crack, steganos tuning pro license, steganos tuning pro cracked, steganos tuning pro crack keygen for windows, steganos tuning pro licence keys, steganos tuning pro crack for windows free download, steganos tuning pro crack latest version, steganos tuning pro patch, steganos tuning pro crack latest version

    Other useful resources:
    RapidMiner Studio crack version
    Resolume Arena crack windows
    Cypheros TS-Doctor crack new
    Антиантиплагиат как работает программа
    Hello world! – Bolivia Paginas Amarillas
    Download The Orange Box Keygen Serial
    Google Books Downloader
    download video from pornhub
    ATC Fasting Prayer | Australian Tamil Church
    готовые домашние задания и решебники
    Software Cracks Keygens
    Download uiautomationcore.dll to fix missing or corrupted DLL errors

  4. Brucenowl ⋅
    Your comment is awaiting moderation.

    Push the “Download Now” button to download Free Video to Mp3 Converter Full Version With Keys Latest.
    The process will just take a few moments.

    Extract audio streams from a wide range of video files and create MP3 or other types of audio tracks, such as WAV, AAC, WAV or M4A

    MIRROR LINK —> Free Video to Mp3 Converter + Crack Latest

    · Version: 5.1.6.215
    · Release date: Feb 19th 2018
    · Company: DVDVideoSoft Limited
    · Downloads: 15519
    · Download type: safety (no torrent/no viruses)
    · File status: clean (as of last analysis)
    · File size: na
    · Price: no cost
    · Special requirements: no
    · Systems: Win 10 64 bit / Win 10 / Win 8 64 bit / Win 8 / Win 7 64 bit / Win 7 / Win Vista 64 bit / Win Vista / Win XP
    · Rating:

    Tags:
    free video to mp3 converter keygen serial, free video to mp3 converter crack serial, free video to mp3 converter crack windows, free video to mp3 converter keygen crack, free video to mp3 converter crack latest version, free video to mp3 converter crack serial, free video to mp3 converter cracked latest, free video to mp3 converter crack keygen serial, free video to mp3 converter keygen serial, free video to mp3 converter license

    Popular software: https://crackreactor.org

  5. Brucenowl ⋅
    Your comment is awaiting moderation.

    Click the “Download Now” button to download Smarter Battery activator.
    The whole process will just take a few moments.

    Monitor the battery status of your laptop, perform calibration operations and place a small battery gadget on your screen with this user-friendly tool

    Mirror Link —> https://crack4download.com/crack?s=Smarter-Battery&id=96073

    · Build: 5.7
    · Release date: March 15th 2019
    · Developer: Microsys Com Ltd
    · Downloads: 22486
    · Download type: safety (no torrent/no viruses)
    · File status: clean (as of last analysis)
    · File size: unknown
    · Price: no cost
    · Special requirements: no
    · Supported systems: Win 10 64 bit / Win 10 / Win 8 64 bit / Win 8 / Win 7 64 bit / Win 7 / Win Vista 64 bit / Win Vista / Win XP
    · User rating:

    Keywords:
    smarter battery keygen crack, smarter battery crack hack, smarter battery keygen serial, smarter battery with license key latest, smarter battery crack windows, smarter battery crack new, smarter battery cracked, smarter battery crack patch, smarter battery crack latest version, smarter battery cracked latest

    More software: this way

  6. Brucenowl ⋅
    Your comment is awaiting moderation.

    Push the “Download Now” button to download Barcode Studio Full Version With Keys Latest.
    It will just take a few seconds.

    A useful tool that helps you generate barcodes, customize their layout, and print or save them to BMP, JPG, PNG, TIF, EPS, or other file formats

    MIRROR —> Barcode Studio keygen free download

    · Release version: 15.13.1 Build 23595
    · Build date: May 7 2019
    · Developer: TEC-IT Datenverarbeitung GmbH
    · Downloads: 27151
    · Download type: safety (no torrent/no viruses)
    · Status: clean (as of last analysis)
    · File size: unknown
    · Price: free
    · Special requirements: no requirements
    · Supported systems: Win All
    · User rating:

    Tags cloud:
    barcode studio crack windows, barcode studio crack version, barcode studio activate code, barcode studio crack, barcode studio crack version, barcode studio with license key latest, barcode studio crack keygen serial, barcode studio license crack, barcode studio patch, barcode studio license crack

    More keygens: this way

    It may be interesting:
    ГБОУ СОШ “ОЦ” с. Александровка
    Антиплагиат как работает
    identification service is widely demanded by several industries
    Download Rhem crack and keygen free download
    Problemas en el garaje | Val do Fragoso
    EDS Google Books Downloader – download google books free
    Скачать ProxyCap crack и keygen
    ГДЗ: Готовые домашние задания и решебники с ответами
    How to repair missing or corrupt amtlib.dll

  7. Brucenowl ⋅
    Your comment is awaiting moderation.

    Click the “Download Now” button to download TSPrint Licence Keys.
    The whole process will just take a few seconds.

    Print documents from a terminal server by sending them to a local network printer with this lightweight software solution that packs several relevant features

    MIRROR —> TSPrint crack for windows free download

    · Version: 3.0.5.9
    · Build date: April 16 2019
    · Company: Terminalworks
    · Downloads: 4221
    · Download type: safety (no torrent/no viruses)
    · File status: clean (as of last analysis)
    · File size: unknown
    · Price: free
    · Special requirements: no
    · Systems: Win 10 64 bit / Win 10 / Win 2008 / Win 2003 / Win 8 64 bit / Win 8 / Win 7 64 bit / Win 7 / Win Vista 64 bit / Win Vista / Win XP 64 bit / Win XP / Win 2K
    · User rating:

    Keywords:
    tsprint serial code, tsprint and crack, tsprint crack serial number, tsprint update crack, tsprint crack patch, tsprint + crack latest, tsprint serial number, tsprint key crack, tsprint cracked latest, tsprint serial keys x86/x64

    More software keygens: https://serialcrack.org

    More software:
    How do I change my Fronius wifi password – National Renewable Group Australia
    Антиплагиат как пройти
    ????????? | ~??????~
    Download The Operative: No One Lives Forever Cracked Latest
    Blog – All natural supplements and vitamins
    EDS Google Books Downloader – download google books free
    Скачать WebDrive crack и keygen
    Repair missing or corrupt iggy_w32.dll
    NEMF 2018

Leave a Reply

Your email address will not be published. Required fields are marked *