Why Bitcoin is the Path to Economic Stability
“Bitcoin is extremely volatile” say the journalists, economists and bankers.
Is it though?
If you were on a boat that was being tossed about by rough seas and were looking out at a lighthouse on the shore, that lighthouse’s position would appear extremely volatile. Here’s why Bitcoin is like that lighthouse.
Bitcoin is Profoundly Stable.
Everything about Bitcoin’s operation is actually perfectly stable. The supply of coins is issued precisely in the quantity and exactly according to the schedule that was set out on its launch. Bitcoin remains fully operational with not a single second of downtime in the last 8 years and only two downtime events in its entire existence. Every critical aspect of Bitcoin, like its decentralization, remains in place and only gets stronger over time.
No matter what the world has thrown at it, Bitcoin’s has kept all its promises:
1. It has prevented bitcoins from ever being mis-spent or re-spent.
2. It has issued a precisely predictable supply.
3. It has allowed owners to spend coins without restriction.
4. It has allowed anyone in the world to use Bitcoin.
5. It has allowed anyone in the world with a basic computer to verify all of these facts for themselves without having to trust anybody else.
There have been no exceptions. How could anyone call this volatile?
Bitcoin’s Adoption is a Mass Migration Towards its Stability
When critics call Bitcoin volatile, it is not meant to be a compliment. They are implying that stability is preferable to volatility. This much is correct. They are just mistaken about what stability is. Bitcoin’s incredible stability and reliability as described above is precisely what is attracting such large and growing numbers of people, corporations, institutions and governments to adopt it in ever greater degrees.
As Bitcoin’s adoption increases, its value, as measured in dollars, rises profoundly, albeit with wild short term fluctuations as markets try to figure out just how valuable it is becoming.
What’s Volatile is National Currencies
The worst of the national currencies around us are in a state of collapse. Venezuela’s Bolivar has lost 99% of its value against the US dollar in just a year at the time of this writing. However, even the British Pound has experienced 17% volatility in ups and downs relative to the US dollar in the same one year period.
If we hold national currencies up to the standard of stability described above, none even offer any of Bitcoin’s promises.
1. None offer any promises of predictability of supply — and many, including the dollar have seen massive supply increases in recent times.
2. None are entirely resistant from being seized by authorities.
3. None offer their holders unrestricted permission to use them — regulations exist that require owners to identify themselves and declare their uses for values above certain thresholds.
4. None offer access to every citizen of the world — many specifically embargo people from other nations from using them.
5. And none can have their supply verified or audited independently — it’s doubtful if even the authorities in charge actually know the supply that exists.
Bitcoin is the Path from Volatility and Opaqueness to Predictability and Transparency
In light of all this, it is no surprise that Bitcoin is increasingly being chosen over national currencies. Bitcoin’s steady and unbreakable assurances give the world a stable standard upon which its people can reliably trade with one another across any distance, in any value and over any period of time. And this reliability is exactly what will lead to greater, global economic stability.
I thank the Author of this blog Tomer Strolight to allow me to blog this. It is a part of his Why Bitcoin Series - a collection of articles about Bitcoin that are all only three minutes long. See: