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@ BitcoinDarjeeling
2025-03-16 09:05:26Bitcoin is really the store of energy. Just like energy cannot be produced and only converted, just like it is finite, is bitcoin. Energy itself has no value for anybody. Unless we can use a certain form of energy for something useful. Bitcoin is also trying to follow the same parameters.
Bitcoin is not a get rich scheme. It is only store of value. Its price is only in fiat currency, is only incidental. Its price has no meaning.
You store any amount of bitcoins or satoshis, one has two options. Either to exchange fiat currency in a market or to spend energy to produce the last few bitcoins that are left to be produced. In both these options, will require energy.
To just be able to buy using USD/INR/GBP/EUR/etc the buyer needs to have done the some in the society. Buyer could steal it, inherit it, cheat it, farm it, manufacture it, give any services, all is equal. Bitcoin does not judge anybody and has no morality. The fiat currency obtained with whatever means can be used to exchange into bitcoins. The person who sold it will eventually realize his error and wont be selling it again. And gradually to be able to buy bitcoin using fiat will only get harder an d harder.
The other way still open for now is mining it by spending energy. Even here, the miner will need access to fiat to buy both the tools for mining, and the constant flow of electricity which can run the mining operation. Even here, the fiat currency is required, obtained with whatever means. The amount may differ based on region and time period. Even here the amount of electricity needed and the cost of tools needed will gradually keep getting harder. Will continuously need further more and more fiat.
Fiat currency is one of the major evils of this age. The amount of work needed to produce fiat is not the based on an operating free market. The fiat currency has a tendency to over produce itself at will, more than the amount of goods or services available to be bought with that fiat. That is the evil called inflation. And this is also the reason why Bitcoin's price in fiat terms fluctuates so often. Bitcoin's price has to continuously absorb real and fictitious fiat value and re-adjust itself. This re-adjustments are only limited to traders of Bitcoin who are watching its price.
The other group of bitcoin holdlers are ones who choose not to sell their bitcoins only due to its price changes. For them bitcoin has no price. These people sell their hard work, obtain fiat, sell the spare fiat and finally store their hard work only in bitcoin. They keep trying to exchange their fiat into bitcoin as many times they could, regardless of the price.
Now comes the question of whats is the use of storing humans hard work, into a stronger asset like Gold or Bitcoin. The wealth obtained by ones hard work is most expensive. Hard work requires spending life's time. Human time is not infinite. The time we spend in our life on something is spent and never comes back. Therefore it is most important to be cautious on how we save and spend our time on. If we ask a mason for making us a home, the mason had to exchange a small portion of his finite life in making a house. He should rewarded in the same manner as is is value of that time spent. And just life his life's time that is spent permanently, he should be able to store that value also permanently. That is why we would all prefer top store our hard work in stronger assets. Value of such stronger assets should be changed by anybody, not by any government, by act of war, by any thieves or even by time itself.
Finally there are the advantages of storing ones hard earned wealth (a.k.a life's time) in a strong asset. A society where and all its members are storing their hard work in a stronger asset, will naturally finds that equilibrium where it begins to give value to only things that matter. All wealth is now guaranteed to be earned by hard work. This wealth will not be exchanged for anything that does not have matching hard work. There can be little to no waste cause now to waste, will require real life's time spent on easy work or no work at all. Now for anybody with any skill will have to race with their hard work, not lies. The goods and services in such society will all become precious. Nobody here is able to create wealth by manipulation. The amount of value of bitcoins is open to be verified by everyone. It cannot be changed or even hidden.
Bitcoin is only trying to be a perfect store of value. It learned many good properties from Gold, which lasted 5000 years. But now with advancements of technology in both mining gold and storing gold, is not able to preserve its value. Transporting gold was a problem from the beginning and its divisibility was very limited. Bitcoin for now uses the internet for its transport which is a backbone of all global commerce. Bitcoin solves the divisibility by allowing 100 million parts. Gold still stands decentralised by allowing physical access. Bitcoin too allows allows physical access in a different form. It being digital in nature, the physical access is about storing the cryptographic private keys. Gold still is as rare but with advancements in metal processes, its 100% verification is out of reach of common people. Bitcoin makes sure verification stays decentralised, accessible to every one and 100% accurate.