Trust over time
The more history a coin has, the more trust it acquires. Gold has been with us since the dawn of mankind, making it the most storied and trusted monetary asset.
Fiat currencies, although they seem to have been around forever, are relatively new and have proven very susceptible to disappearing. For example, the dollar, the most powerful fiat currency today, is experiencing a crisis that many of us think will be definitive.
Bitcoin is an extremely young asset. It barely has ten years of history. In this time it has withstood different market tests and it is very unlikely that it will disappear. The longer it exists, the greater the confidence we have in it and the certainty that it will continue to exist in the future. In the year 2040, trust will be almost universal and everyone will assume that it will exist forever.
In the traditional system, different institutions control the flow of money. In many cases, this is useful to prevent its misuse, but it also allows abuse by these institutions that have their own and very particular objectives.
Bitcoin was created to remove this control over us through money. One of its main characteristics is that it is a point-to-point system that does not require any human intervention to allow transactions within the network.
One of the main characteristics that sound money must have is that it must be expensive to produce.
Gold fully complies with this characteristic. Extracting it from the subsoil is a process that requires many resources. Fiat money, on the other hand, is issued by the state on a discretionary basis, at a very low cost.
Bitcoin is produced through a Proof of work process, or mining, this ensures that the cost of extracting a Bitcoin is similar to buying it on an exchange.
One of the main problems that money has had, until the arrival of Bitcoin, is that the centralized control of institutions is capable of threatening any of the other aspects, especially scarcity and resistance to censorship.
The nature of Bitcoin means that it has an immutable monetary policy, this also applies to decentralization, that is, at no time will there be a group, or person, that controls the Bitcoin network.
The Bitcoin code is completely transparent and can be used by anyone, at any time. It is possible to program applications over the network, without the need for any permission.
Thanks to this programming, Bitcoin has the ability to continuously improve, it is dynamic, updatable and scalable.
These Bitcoin articles are not investment advice. Any investment is the responsibility of the person who makes it.
My intention is to share the news that, for the first time in history, we have something that meets all the characteristics that sound or healthy money should have. This fact will bring many benefits and advantages for everyone.
I encourage you to keep learning more about these amazing blockchain-based tools. I wait for you in my next column, where we will continue exploring the wonderful world of web 3.0 and the Metaverse.
Do you have any comments about this text? May I help you? Write me. It will be a pleasure to talk with you.