Topic: Money vs Bitcoin - page 2. (Read 208 times)

Bitcoin is a digital currency, which means its another form of money in a digital form to use in making payments either on buying or selling, bitcoin is also an asset of investment, which also means you can exchange your asset into bitcoin and hold it for some time and it will yield some profits for you, it has the ability of withstanding against inflation, it does not loose value over time, bitcoin has many means of applicable uses than we have with fiat, if we can invest, we can use it on various purpose to our own benefits in the financial economy.

Inflation is a part of fiat's design. Low inflation (but not no inflation) is considered a good thing by most economists, as devaluation of money is supposed to motivate people to spend money, and thus money continues circulating and keeps helping the economy. Bitcoin is surely better as an investment than any fiat currency, but I'd say it's worse as a medium of exchange because its growth does lead to the "hodl" attitude, and its scalability makes it inconvenient for daily purchases (as a practical replacement of fiat, unless we go with centralized solutions).

Fiat currency has never been used as a store of value, because it can be manipulated by the government, and the government prints more money when there is low circulation of money. What are store of values are those valuable assets that appreciate over time, which fiat currency is not part of it. We only use it to buy and pay for goods and services, because it is a legal tender made by our government. Gold, estates and landed properties are known as store of value because they are used as hedge against inflation. Here comes bitcoin in 2009 the only digital currency that can now be used as a store of value or as currency reserve for the future.

Money is supposed to be a medium of exchange, unit of an account, and a store of value. However, our money today is far from a store of value. Nowadays, people must earn their money twice: first, work to earn a paycheck, and secondly, figuring out a way to invest a portion in assets or financial products because their money lose value due to inflation and currency debasement.

While Bitcoin is chiefly a system for transferring digital value, it is inherently and always will be so much more than just that.
The blockchain truly is a marvelous piece of technology. A mechanism to timestamp the order of digital information without needing to depend on a centralized operator. A decentralized mechanism with no one in charge, that provides undeniably cryptographic guarantees around what data was added to the temporal record in what order. This property is the entire reason Bitcoin is useful as a form of digital money, without it there would be no way for the system to function at all without a centralized authority.

Bitcoin is not just money, and no matter how many times people chant it is only money and nothing else, it will never be true cos all of these guarantees are provided by three simple technical building blocks: private/public key cryptography, merkle trees, and hash algorithms.
Bitcoin is a digital monster, and it will eat everything. The only thing challenging the existence of Bitcoin is "time" cos as time goes, Bitcoin goes.