There’s little doubting that Bitcoin would not be where it is today – as an entity and in terms of its price – if it wasn’t for its pattern of monumental growth. This ‘Satoshi cycle’ of interest growing with price, growing more interest, has formed Bitcoin into somewhat of a financial titan.
This well-talked about titan is still in its infancy however, despite its high value. And while people continue to flood into the market in the hopes of not missing out, one must remember what else Bitcoin offers.
Is it a currency, or an asset?
This argument of currency over asset, or store of value, has raged on for some time now with a few strong factions forming. There are those who believe that Bitcoin, like the whitepaper says, is a currency and should be liquid enough and functional enough.
Then there are those who believe that Bitcoin is dead and Bitcoin Cash is the new Bitcoin, as it functions like a currency.
There are those who are calling Bitcoin digital gold and backing it as a new asset class for investors to store and profit from.
Cameron Winklevoss, Bitcoin’s first recognised Bitcoin billionaire with his twin brother, said recently:
“We’ve always felt that Bitcoin, given its properties, is gold 2.0 — it disrupts gold. Gold is scarce, Bitcoin is actually fixed.”
Either or, asset or currency, Bitcoin offers the man in the street a lot more power than he used to have when it comes to any form of financial movement. Investing or spending, with Bitcoin people are set free.
As a store of value
Through history investing has been ellitest and exclusionary, so much so that Silver had a run in the 70s and 80s because it was unguarded by Wall Street and had properties that appealed to the man on the street.
To that end, Mark Fisher a famed trader has likened Bitcoin to that silver run as everyday individuals are making their first major investment in Bitcoin, rather than stocks, bonds, gold or other highly controlled assets. Fisher said:
“The reason people are so attracted to Bitcoin is because people want something that’s actually moved dramatically; there’s no Wall Street to it. The thing that every cab driver is talking about all day long.”
As a currency
Even though the ‘store of value’ camp may be winning the race to define Bitcoin at the moment, it still has the ability to be used as a currency and it has the properties of decentralization that again makes it highly important in this new era.
People no longer trust and appreciate banks for the way they have created the monetary system. Banks set high fees, waiting times and regulations on sending money – individuals own money – and that is starting to get on many people’s nerves.
Bitcoin may not function perfectly, having its own fees and waiting times, but it’s still a damn side better than banks when it comes to moving money. Its decentralized nature puts full control in the hands of the individual.
Be proud to be a Bitcoiner
There are those who have one eye on the stock ticker all day, ready to push the eject button when things get a little scary, but the fact of the matter is that Bitcoin is here to stay, and it should be celebrated for what it can do, not what price heights it can reach.