Since the market cap of Bitcoin is a small fraction of money supply,
we haven't started perceiving the fiat getting devalued everyday relative to Bitcoin.
Our perception would potentially change once Bitcoin represents a more significant portion of total money supply.
This is a volunteer effort to illustrate how it will look like if we get there!
What is Bitcoin?
It is definitely not money created from thin air, not QE, not helicopter money,
not a national currency, not backed by humans. It is a beautiful
idea to transact store of value
without any third party which is electronic, cheap, secure and efficient.
This is still being tested out and far from perfect
so there's a huge bug bounty on this
and the prize keeps getting bigger everytime a banker thinks or talks about it but fails to find the bug in it!
Should I invest in Bitcoin?
No, just try it and see if it is any better than conventional way of
There are hundreds of coins, most of these are a copy of bitcoin
and their creators have zero intention to add any value to the society. There are only handful projects
that are working really hard and it is a shame that people with right intentions and hard work are prone
to receiving bad reputation because of this. It is people's responsibility to identify good from bad
rather than blindly speculating on these things and debating if there are bubbles!
"It is volatile but fiat is stable"
Yes, it is perhaps one of the most volatile investable
instrument out there available to general public. This is mostly because it is still being experimented,
developed and improved and the fact that it is available to global audience and there's lot of speculation
and event risks around it.
Fiat on the other hand is far more stable(yes, relative to itself and other fiat currencies!)
One shouldn't forget that there's taxation and inflation(taxation without legislation).
There's no issue with these things, but general public has no control over these things.
Only becomes so obvious in the hindsight when things had already gone wrong (
QE and helicopter money,
and a few more.
What about money laundering and criminal activity?