Member-only story
A Moron Explains Bitcoin- Part 2
In the first part of my explanation, I shared my moronic wisdom on why Bitcoin exists and some of its basic properties. This article is more focused on the current narrative for Bitcoin and why it may make sense to own some Bitcoin.
So why should I own Bitcoin today? I can’t spend it on anything and the price moves like crazy. If people all of the sudden lose faith in it, it will go to $0.
While Bitcoin was originally designed to be digital cash, its narrative has shifted to digital gold.
For centuries, gold and silver were money or backed money. Fifty years ago, this changed into our fiat money being backed by nothing other than faith. The issue with the current fiat money supply is that it can be printed endlessly. And it has been.
As more fiat money is created, the value of existing dollars, pounds, pesos, Euros, continues to decrease. This causes inflation and means that money sitting in savings is actually decreasing in spending power.
People are forced to buy assets like businesses, stocks, real estate, collectibles, and now crypto assets to maintain their spending power. If they hold their money in savings or a safe deposit box, it will buy them fewer goods and services in 10 years.
