I do believe that Bitcoin is here to stay. So yes I do believe in its future at least for my lifetime
But that doesn’t exactly mean that we can attribute existence of BTC to financial outperformance versus other assets
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what about oil?
I think Oil (aka Liquid Gold) is finite too. But at some point people figured that finiteness of oil is not important , the use of oil is important
Maybe you remember at some point Oil was 147 USD . Now even though USD has depreciated, Oil is not seeing those levels.
Shale gas was actually one of the main reasons for this shift in mindset from Oil but recently sustainability took over.
And after it was discovered that Oil can be replaced by other things like Nuclear, solar, Air, geothermal, water etc, its value also declined even if it is finite.
In summary -: the utility is generally a better indicator of value versus scarcity. But often people have this desire for scarce things (Gold, Platinum, BTC, Picasso paintings, Hermes bags) and eventually rich people need to spend their money somewhere. So why not buy things which give you social status or pleasure versus boring stock ETFs 
look at this CNBC clip (all precious metals roaring)
One wise person once told me something that stuck with me
“People don’t become rich by buying Gold or fine art or luxury Real estate. People who are already rich buy these things”
I just had to think about a 100 years ago. A 100 years ago:
- No Penicillin
- No Computers
- No nuclear bombs or powerplants
- No humans in space
- No birth control pills
- No GPS
- No World Wide Web
- No Smartphones
- No BTC
- No passing the Turing test
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Hopefully more new things coming in next 100 years
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I’ve done nicely with the limited BTC i’ve bought (should have started doing so earlier) but am VERY happy with the returns from writing put options on the IBIT BTC ETF.
My rationale: Bitcoin is the best money humanity ever had. You pay rent also with money, but just with an inferior one.
And yes, CHF is still better than Bitcoin from an acceptance point of view. But that is normal in the evolution of a new money.
Most people I encounter in my life just don’t understand what money is.
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And how would you enlighten them?
Isn’t money = means of payment (substitute/proxy/optimizer for material exchange of goods that one has vs. needs)
Bitcoin is rarely used for that nowadays.
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The last couple of days, in a small town mids in the Bulgarian mountains, I paid for food and beer in Bitcoin. I wasn’t expecting that. Slowly but surely…
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In my opinion the three main properties of money are:
- MOE (Medium of Exchange)
- SOV (Store of Value)
- UOA (Unit of Account)
You are mentioning the MOE.
Part of this is because of Gresham’s Law, people tend to hoard good money (SOV — Bitcoin) and spend the bad money first (MOE — Fiat).
Because most people still use fiat as UOA, people also mostly use fiat as MOE. This is an ongoing process. For example, we in Switzerland have access to banking and all the other layers built on top of it like Twint, MasterCard, Visa, PostFinance Card and so on. But many people on earth don’t have easy access to banking. They will probably adopt Bitcoin as MOE earlier than we do, because they do it out of need. We are privileged. The CHF is one of the best fiat currencies on earth.
If you understand all facets of money, you will naturally come to the conclusion that Bitcoin is the best form of money humanity has ever had.
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I would disagree that (fiat) money is a store of value.
If it were, inflation wouldn’t be a thing.
By that premise - fiat money is not money 
;
and BTC might end up being a better SoV than fiat indeed,
but nowadays it also isn’t, given its volatility (against the fiats of the world, again).
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For me, everything is an investment. If I invest my lifetime in work, then I get CHF. Congratulations, I am now invested in CHF. If I use it to buy a television, then I have invested in a television. If I use it to buy food, then I have invested in my survival (to put it bluntly). If I use it to buy shares, then I have invested in shares. If I use it to buy BTC, then I have invested in BTC.
What matters in the end:
- The investment must make sense for me (not always financially)
- But in the end, I need a currency (to pay food, rent etc.)
As I live in Switzerland, the CHF is relevant for my daily life. CHF is an investment and my currency. Everything else is only an investment. That’s why Bitcoin is not a currency for me. Whether Bitcoin is technically a currency or not doesn’t matter. For me it’s not relevant as a currency, because no store I use accepts it. But this shows: if others effectively pay with it, then it can be a currency. In the end, it depends on the personal circumstances.
If BTC is best money then why do we need money to buy BTC ?
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Fiat is a bad SOV. When money was still pegged to Gold it wasn’t that bad. Bitcoin is the best SOV today. Not sure how you come to your conclusion.
Well thanks for providing an example of someone who doesn’t understand what money is. You are also just seeing the MOE point of view. And that is fine. Money is not an investment. You don’t invest in money. You exchange your time for money to later exchange it for something you need.
Because you don’t earn in BTC… Or do you think the Euro is not money because you have to buy it with CHF if you go to the EU?
Well I think BTC is an asset rather than money. To be considered money it needs to have legal tender and govt support. That’s all. It can be money in future. Who knows. But I don’t see signs of it yet.
In my view I see contracting terms all the time. On one hand Bitcoin is termed money which means it is just medium of exchange of value (to exchange goods and service) . But just because I have 1 BTC, in two years I am expected to exchange 3X value of goods and services because 1 BTC is worth more. How is it possible? I understand dollar is depreciating, but is it really depreciated at rate of 1000% in last 10 years? NO.
So the only way for BTC to be able to have higher value to be able to exchange higher amount of goods & services than past is that it is as asset which is worth more (in eyes of behodler)
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I don’t understand why is it such a big deal to call BTC as money rather than a risk asset (blockchain with network of computers) which it actually is.
I understand that BTC community wants BTC to be legal tender , wants it to replace Fiat, and within BTC community maybe it is already money. But BTC community is neither a government and nor an authority, and we live in world with central authority for now where laws are not made on internet
You are talking about a currency, not money.
No, the value of money goes up, because we as humans are productive.
You do not understand it, because you don’t understand money.
Because I shouldn’t be able to buy 1 Lambo in April, then 2 Lambos in May, then 0.5 Lambos in June with same amount of BTC.
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At what rate per annum? approx?
I see. clear.
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This is not how the value of Bitcoin performed. Bitcoin stored the value of your time the best since its inception / better than any other money.
How should I know. I can’t know. That is exactly what money does, it answers that question. But it can only do that reliably if it is not inflated randomly.
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