Bitcoin is undeniably the best money in history. Its reserve currency status is a fait accompli, and nothing can stop this eventuality. Bitcoin has already won. So, how can a good store of value (SoV) also be a good medium of exchange (MoE) and unit of account (UoA)? It may seem too perfect, but let's delve deeper.
The misconception that Bitcoin is prohibitive to use for paying for things comes from measuring its value in an inferior, depreciating form of money devoid of any intrinsic value, such as the dollar. The dollar price of Bitcoin is merely a relative face value, while Bitcoin, as a nascent form of money, is still in the process of monetization.
Money is anything that's accepted as representing value by the parties to any transaction. Over the years, humans have always sought money that can hold value over time until it is required to purchase other things of value – goods and services. In a world where satoshis (sats) replace dollars as the UoA, it would be a question of whether a good or service is valuable enough to part with a certain amount of sats.
What we really want from money is reciprocal equity, not absolute equality. Those who work to create more value must gain more monetary value than those who create less value. In a free market, we validate and reward each other's proof of work.
Centralized issuance and manipulation of money within hierarchical monetary systems interfere with this free market process. Bitcoin, however, ensures that few with the means cannot arbitrarily create money and steal the monetary value that others have acquired through hard work.
Bitcoin's supply is finite and limited to 21 million, but it is infinitely divisible.
Injecting new money into the economy, as central banks do, is an artificial way of re-dividing the aggregate monetary value within the economy inequitably, favoring those close to the new money.
While there may not be enough bitcoins for everyone, there are more than enough sats – around 2.1 quadrillion sats. This infinite divisibility, but not infinite supply, is an essential property for high-velocity money. Gold, the best scarce money in history, does not have this property, but Bitcoin does.
In a Bitcoin economy, every good or service will be priced in sats, rather than dollars. You can move your sats from one corner of the world to another instantly and at next to no cost, without middlemen. No money in history has ever had this property, making Bitcoin's rise as the world's reserve currency inevitable.
A Bitcoin economy would eliminate the moral hazards within the current monetary and economic paradigm. It would restore rigor and sustainability to credit lines without frequent intervention at the cost of rampant inflation and cultivate better spending habits.
The current system of credit constantly incentivizes or even forces you to keep spending money from tomorrow's labor, with the new injection of money ending up concentrated at the top. This diminishes your purchasing power while enriching those at the top of the pyramid.
Fiat monetary systems have never survived beyond a few generations. We've had 3,800 fiat currencies in history, and they've all failed. The Federal Reserve's creation in 1913 and President Nixon's cancellation of the US dollar's convertibility to gold in 1971 have led to dire consequences.
Perpetual inflation and money printing have eroded the purchasing power of fiat currencies, leading to wealth disparity and instability. The dollar has lost over 95% of its purchasing power since the inception of the Federal Reserve. This erosion of value disproportionately affects those without access to financial instruments that can preserve their wealth, further widening the gap between the rich and the poor.
Bitcoin's emergence is a solution to this broken system. By adopting Bitcoin, we can ensure a fair and decentralized financial future. With its finite supply and predictable monetary policy, Bitcoin provides a hedge against the devaluation of fiat currencies and safeguards our hard-earned wealth.
The transition to a Bitcoin standard is inevitable. As more people understand the true value of Bitcoin and its superiority over traditional currencies, adoption will continue to grow exponentially. The shift will occur as individuals and institutions seek to protect their assets from the failing fiat system.
Bitcoin's borderless nature unites people from different geographical locations and socio-economic backgrounds, fostering global financial inclusion. By providing a universally accessible form of money, Bitcoin removes barriers to economic participation, empowering individuals to preserve and grow their wealth.
As Bitcoin continues to gain widespread adoption, its utility as both a store of value and medium of exchange will become increasingly evident. With developments in layer two technologies, like the Lightning Network, Bitcoin transactions will become even faster and cheaper, enhancing its usefulness for everyday transactions.
As the world transitions to a Bitcoin standard, goods and services will be priced in satoshis, establishing Bitcoin as the ultimate unit of account. This will bring price stability and eliminate the distortions caused by inflationary fiat currencies.
The time has come to embrace the future of money.
The FIAT system will fail.
Bitcoin is the best money in history.
submitted by /u/futuretothemoon