The Value of Bitcoin

It is worth repeating, as even some advocates of monetary freedom seem confused about it – the value of Bitcoin is a function of its monetary qualities.

One a currency is deemed to be better than another one, not because it’s been provided and supported by authorities but rather because of its usefulness, that is because it’s a better and more effective tool to be used by its users; just as a steel hammer is a more effective tool than a wooden one, even if the latter bears an imprint of a some monarch or president’s face on it.

That aside, in monetary matters the use of this type of common sense seems to be virtually outlawed. This is definitely one of the life’s realms where the common sense is not that common at all. We’ve been, for example, taught that the value of money comes from a government mandate; that our respective currencies should somehow serve as a source of national pride for us; that inflation is the engine of the economy; and, last but not least, that there can be no money unless they have been printed by the central bank and enforced by the central authority.

It should go without saying that we’ve been lied to; and in a big way. And these are precisely the lies – taken as truths by the productive but economically illiterate class – which give their support to the greatest scam in history. According to the official version, money came into existence along with the birth of the state; proponents of such a view claim that without the legal backing from the state the value of an ounce of gold, for instance, would be nothing but a collective illusion. And what about the value of Bitcoin? A bad joke – not even deserving to be called an illusion.

I say let them believe that if they so wish (all the while Bitcoin adoption fuelled by financial and economic mistakes perpetrated and underpinned by the same kind of thinking expands in all directions). When they finally understand why so many people prefer Bitcoin to fiat moneys it will be too late to stop the advancement of the blockchain.