My 🍊💊-ing response to someone with a sharp mind inquiring about #Bitcoin:

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About my reasoning, it has taken me a few years to reframe my mental models and gain further conviction. I try to summarise it:

- Bitcoin cannot be stopped (no controlling party)

- It cannot be censored (decentralised)

- It cannot be hacked or confiscated (public key cryptography)

- It cannot be regulated (well it can, but it cannot be enforced, since it lives outside the system)

- It cannot be co-opted (51% attack impossible even when the network was 100 times smaller)

- It doesn’t have counter-party risk (digital commodity)

- It has solved the double-spend problem forever (problems are solved only once)

- It has created the only digital scarcity it exists (one can argue even the only scarcity at all)

- it can be used anonymously (no need to ask permission)

- It is open source (no dependence on any "app")

- It is verifiable (the whole history of transfers and balances can be audited by anyone, anytime)

- it doesn't have a pre-mine (like most other cryptocurrencies have)

- it has a fixed supply forever (decentralised)

For me, it was when I rationally realised that all those statements are true at the same time and thought about the implications of all of them when put together, that I came to the conclusion that Bitcoin is inevitable.

This is so even without considering that fiat currencies need to be constantly depreciated over time (supply expanded) by definition, which they are, yet still people cannot realize from within the system that this means that their past time and efforts (their savings) are and will be constantly devalued.

To the point on the alternative cryptocurrencies, most of the statements above are not true for any other coin (most have a founder and company behind), currency or asset, let alone at the same time. Additionally, it would be impossible to replicate again all those characteristics at the same time without compromising on decentralisation, so zero chance for competitors.

For that I think Bitcoin will necessarily keep growing in its use case as the ultimate savings technology (current market cap $2T out of $900T of total assets), demonetising stocks, real estate (affordable living!), bonds, etc on its way, while also continue to provide a payment solution for those who need to transfer value without being censored, tracked, or who don't want to ask for permission (think criminals, but also people living under authoritarian regimes or sovereign individuals). This dynamic would repeat until the value of fiat currencies collapse, and people collectively decide to use Bitcoin not only as a store of value, but also as a means of payment and unit of account. The tipping point will be when the people and businesses you interact with don't want your fiat money.

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#Hispano