Michael Saylor often says, "
BTC
is a store of value that you will pass to your kids."
I will demystify
BTC
and share my long-term vision of what Bitcoin will become in the future. This is a philosophical perspective, so take it as such.
Bitcoin is a digital asset, which means there is no cost to duplicating it. Like all digital assets, they eventually get cracked and revert to their real value, which is zero. Any physical object, on the other hand, has value derived from the cost of its production, including the labor involved. It is tangible and cannot be magically duplicated, making any physical object more valuable over time as most get lost, destroyed, or become rarer and more valuable. This is common to any item like books, music keyboards, game consoles, etc.
Bitcoin compensates by having an encryption algorithm stronger than any music DRM protection, and its production cost is tied to the difficulty of mining. However, there are several problems with this concept:
1) All DRM and encryption get cracked eventually because technology evolves, and what seems impossible today may become feasible and straightforward tomorrow.
2) The cost of mining Bitcoin increases as its value does. But if the value does not increase sufficiently, it can become unprofitable to mine, and in that case, the entire network could disappear, become unsafe, or lose value.
3) Since it is a digital product, like MP3s, Bitcoin can be duplicated at no cost and has been many times. $ZCASH,
DASH
,
LTC
, etc., are just copies of the Bitcoin source code with another name and a few modifications.
Considering all this, the future of Bitcoin seems limited. Technology will eventually enable hacking of its blockchain, miners will one day become unprofitable and switch to another blockchain, etc.
Is Bitcoin a store of value? Yes, it is now, but no, it will not be in the long term. The day Bitcoin is cracked, or when miners stop mining it en masse, that will be the end. All the value of Bitcoin will disappear.
Bitcoin is the experimental first version of a cryptocurrency that works, but only that.
Does this mean all crypto has no value? Of course not.
A lot of innovation has been discovered; take ZK Layer technology, for instance. It manages the blockchain in a better way—cheaper, faster, and more anonymously than Bitcoin.
The rise of Bitcoin will show what crypto is capable of, but something else will replace it and become the crypto used by people to buy things.
Bitcoin will not replace gold; it is not digital gold. That is a marketing trap. Bitcoin is an experimental tool, the first fully working crypto payment system, but its future is to become obsolete and be replaced by more efficient solutions.
BTC
is a store of value that you will pass to your kids." I will demystify
BTC
and share my long-term vision of what Bitcoin will become in the future. This is a philosophical perspective, so take it as such. Bitcoin is a digital asset, which means there is no cost to duplicating it. Like all digital assets, they eventually get cracked and revert to their real value, which is zero. Any physical object, on the other hand, has value derived from the cost of its production, including the labor involved. It is tangible and cannot be magically duplicated, making any physical object more valuable over time as most get lost, destroyed, or become rarer and more valuable. This is common to any item like books, music keyboards, game consoles, etc.
Bitcoin compensates by having an encryption algorithm stronger than any music DRM protection, and its production cost is tied to the difficulty of mining. However, there are several problems with this concept:
1) All DRM and encryption get cracked eventually because technology evolves, and what seems impossible today may become feasible and straightforward tomorrow.
2) The cost of mining Bitcoin increases as its value does. But if the value does not increase sufficiently, it can become unprofitable to mine, and in that case, the entire network could disappear, become unsafe, or lose value.
3) Since it is a digital product, like MP3s, Bitcoin can be duplicated at no cost and has been many times. $ZCASH,
DASH
,
LTC
, etc., are just copies of the Bitcoin source code with another name and a few modifications. Considering all this, the future of Bitcoin seems limited. Technology will eventually enable hacking of its blockchain, miners will one day become unprofitable and switch to another blockchain, etc.
Is Bitcoin a store of value? Yes, it is now, but no, it will not be in the long term. The day Bitcoin is cracked, or when miners stop mining it en masse, that will be the end. All the value of Bitcoin will disappear.
Bitcoin is the experimental first version of a cryptocurrency that works, but only that.
Does this mean all crypto has no value? Of course not.
A lot of innovation has been discovered; take ZK Layer technology, for instance. It manages the blockchain in a better way—cheaper, faster, and more anonymously than Bitcoin.
The rise of Bitcoin will show what crypto is capable of, but something else will replace it and become the crypto used by people to buy things.
Bitcoin will not replace gold; it is not digital gold. That is a marketing trap. Bitcoin is an experimental tool, the first fully working crypto payment system, but its future is to become obsolete and be replaced by more efficient solutions.