May 29, 2020
As inflationary monetary economics and liquidity traps come into focus with zero percent interest rates or even negative interest rates, many are looking to Bitcoin as an inflationary hedge or a protection against inflation. Billionaire investors are lining up to compare Bitcoin to gold. That particular comparison has some nuances but the broad macro-theme of Bitcoin being a protection against an inflationary environment has broken through, especially after the recent halving.
Why is that, and what are the historical and economic reasons we might see Bitcoin act as counter-force to inflation and what does it mean to say that it has a deflationary philosophy?
The fierce opposition of some to Bitcoin is reminiscent of the losing battle that has always existed between the disrupted and the disruptors.
When television came along, the radio stations said it was a bad idea that would fail. It was the same thing when the Internet came along. Newspapers' owners had said it would never work.
Each time the disruptors won, and the disrupted had to evolve or else they would disappear. With Bitcoin, it will be the same as this article explains very well.
Most people think Bitcoin’s PoW is “wasteful.” In this article, Dan Held explores how everything is energy, money is energy, energy usage is subjective, and PoW’s energy costs relative to existing governance systems.
This article is a collection of direct thoughts from many individuals in the space — Dan Held's value-add was in the aggregation, distillation, and combination of narratives.
This article presents a distribution that can be used to model the percent daily returns of Bitcoin. Using this model, author identifies that Bitcoin has a mild net positive return and give a formula to estimate the probability of return events. This model can be used to identify and quantify the risk thereof the high risk days (i.e. high return days) and good buying opportunities (upon a lower daily return).
When you read the articles I write daily, you must have realized that I am a Bitcoiner. I make no secret of it, I believe strongly in the Bitcoin revolution. I buy Bitcoin on a regular basis, and I HODL no matter what it costs.
When Bitcoin price dropped 50% during its Black Thursday on March 12, 2020, I took the opportunity to accumulate even more Bitcoins. All Bitcoiners obviously followed the same approach.
As a Bitcoiner, I often meet people who want to know more about Bitcoin. They want to understand why Bitcoin exists, and more importantly, why they should buy it. I often explain to them that it all starts with an individual awareness.
Omar Bham is a well known influencer in the cryptocurrency world. He is also a very nice person who shares his opinions on Twitter and YouTube in an honest way without trying to maximize the money he can make from his popularity.
I totally share his approach: quality content to build a community on the long term. Money is a positive consequence of the added value he brings to others.
Given its great popularity, Omar Bham doesn't need my spotlight, but I'm mentioning it here for those who are not yet familiar with his YouTube channel.
To be seen urgently!
A highly readable account of a complex subject, In Math We Trust is all you need to find out about Bitcoin, cryptocurrency, the future of money and the journey to being your own bank.
Money is the most important human invention after language. It provides tokens for the faith we have in each other and society, but that trust has been violated repeatedly throughout history by the middlemen and authorities we rely upon in order to transact with each other.
Now a new kind of money promises to rescue us from these tyrants and return us to the roots of money, without relying on third-parties.
Instead of putting our faith in banks and governments, we can trust math.