I have noticed a fairly high crossover between interest in Bitcoin, and in Covid truth. The other day I followed a Bitcoin maximalist on X (Twitter), and was informed that Jessica Rose follows too.
Very interesting essay. I'm a crypto newbie, skeptical but keeping an open mind. I'm looking for a few things in money: store of value and means of exchange. You make the argument for store of value very well. But how does this work as a means of exchange without internet access, which is subject to the vagaries of weather, electric power, government, and so on?
Another concern is the permanent cap on the supply. Money supply should be proportional to population, at the very least, not to mention the price of a basket of common goods and services. The deflationary power of gold was enough to prompt a revolution against the gold standard in the late 19th and early 20th centuries; just ask William Jennings Bryan. Crypto is even more deflationary. How long can it be tolerated?
I'm not arguing against crypto, I'm just trying to learn. I'd love to hear your thoughts. Thanks!
Hello Surak, If the internet goes down, as long as there are bitcoin mining rigs running somewhere, like off geothermal power on the side of a volcano in El Salvador, your ownership of that Bitcoin will remain secure. Nothing is perfect though in SHTF.
A single Bitcoin is divisible into 100,000,000 Satoshis. A Satoshi is the smallest unit of blockchain that can be addressed. There will always be enough Satoshi's to go around. A single Satoshi won't even be worth a penny until and unless BTC = $1,000,000. The hard limit, and the deflationary nature of Bitcoin is not a bug... it's a feature.
Very interesting essay. I'm a crypto newbie, skeptical but keeping an open mind. I'm looking for a few things in money: store of value and means of exchange. You make the argument for store of value very well. But how does this work as a means of exchange without internet access, which is subject to the vagaries of weather, electric power, government, and so on?
Another concern is the permanent cap on the supply. Money supply should be proportional to population, at the very least, not to mention the price of a basket of common goods and services. The deflationary power of gold was enough to prompt a revolution against the gold standard in the late 19th and early 20th centuries; just ask William Jennings Bryan. Crypto is even more deflationary. How long can it be tolerated?
I'm not arguing against crypto, I'm just trying to learn. I'd love to hear your thoughts. Thanks!
Hello Surak, If the internet goes down, as long as there are bitcoin mining rigs running somewhere, like off geothermal power on the side of a volcano in El Salvador, your ownership of that Bitcoin will remain secure. Nothing is perfect though in SHTF.
A single Bitcoin is divisible into 100,000,000 Satoshis. A Satoshi is the smallest unit of blockchain that can be addressed. There will always be enough Satoshi's to go around. A single Satoshi won't even be worth a penny until and unless BTC = $1,000,000. The hard limit, and the deflationary nature of Bitcoin is not a bug... it's a feature.
Thanks for your explanation, Jim.