#Bitcoin > Gold
For the attributes that make a monetary good suitable as a store of value, #Bitcoin is superior to gold along every axis except for established history. As time passes and the Lindy effect takes hold, established history will no longer be a competitive advantage for gold. Thus, it is not unreasonable to expect that #Bitcoin will approach, and perhaps surpass, gold’s market capitalization in the next decade. A caveat to this thesis is that a large fraction of gold’s capitalization comes from central banks holding it as a store of value. For #Bitcoin to achieve or surpass gold’s capitalization, some participation by nation-states will be necessary.
Owning #Bitcoin is one of the few asymmetric bets that people across the entire world can participate in. Much like a call option, an investor’s downside is limited to 1x, while their potential upside is still 100x or more.
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I am from Nepal…In past 7days, I helped 3 of my friends to set up their lightning wallet and now they accept #Bitcoin.
One runs a coffee shop, One runs a pub and the other one runs a central kitchen.
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true, that point “if properly self custodied” is very important.
I had been storing it in a ledger device, and with all the recent negative headlines it gathered, I have been worried if its a good device.
would like to know which one you use ?
and what are the best ways to store it ?
Owning one #Bitcoin is the digital scarcity equivalent to owning 750 acres of land.
Unlike land, it's perfectly liquid, with near zero maintenance costs and asymmetric defence against attack.
“Telling time takes work”
It is often said that #Bitcoin is mined by solving complex maths problem. While it is easy to convey, it does miss the point somewhat.
#Bitcoin is not produced or created, and the whole ordeal is not really about solving particular math problem. Also, the math isn’t particularly complex. What is complex is “telling the time in a decentralized system”.
As outlined in the whitepaper, the Proof of Work system (i.e. Mining) is a way to implement a “distributed timestamp server”.
When I first learnt about how #Bitcoin works, I also thought that Proof of Work is inefficient and wasteful.
Soo, I started to shift my perspective on #Bitcoin’s energy consumtion. It seems that POW is still widely misunderstood today in the year 15AB.
Since, the problem to be solved in POW are made up, many people seem to believe that it is useless work. And many people believe that the focus is purely on computation and concluded it there.
But, #Bitcoin isn’t about computation. It is about independently agreeing on the order of things.
Proof of Work is a system in which everyone can validate what happened and in what order it happened.
This independent validation is what leads to consensus - “an individual agreement by multiple parties about who owns what”.
In a radically decentralized environment, we don’t have the luxury of absolute time. Any clock would introduce a trusted third party, a central point in the system, which had to be relied upon and could be attached.
Timing is the root problem and #Satoshi understood it.
#Satoshi solved this problem brilliantly by implementing a decentralized clock via Proof of Work Blockchain.
Everyone agrees beforehand that the chain with the most cumulative work is the source of truth, It is per definition what actually happened.
This agreement is what is now known as “Nakamoto Consensus”
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With #Bitcoin , since you have to trust the chain-of-trust, your are actually in base reality and not imprisioned in a similutaion by malicious actors.
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#Bitcoin is the system, which is aiming to remove trust wherever possible: Trust Minimized.
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#Bitcoin is purely digital. It is intangible. It is non-material. The non-material is the spiritual. It thus follows that #Bitcoin is a spiritual form of money.
The journey into exploring #Bitcoin causes one to ask many times along the path “Is #Bitcoin offering something here that I value or find moral?” It makes one look into one’s own spirit to verify what it is that one finds moral and valuable.
If you want to compare #Bitcoin to something else, compare it to fire, the number zero, the wheel, the printing press, or electricity. Yes, it is that important. It is an autopoietic network that is internally stable and can't go bankrupt.
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So studying #Bitcoin turns out not to be a mere study of the nature of money, of economics, of math, or computers. It turns out to be a study of one’s own values and morals.
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