Posted on April 28, 2020
Globalized Money for a Globalized World
Bitcoin is money. Many people still dispute that statement. But while this statement was still ignored a few years ago and then simply smiled at a little afterward, in our day and age it is vigorously opposed. Anyone that commingles with economist and utters this very statement that bitcoin is money is being attacked. The outcry among the so-called experts is huge, the criticism sharp, but their arguments are poor.
Mahatma Gandhi already knew: First, they ignore you, then they laugh at you, then they fight you and then you win. If one applies these stages the Indian, pacifist freedom fighter (what a paradox, but especially as a Bitcoiner one should have grown fond of paradoxes) has laid out, the cryptocurrency is currently in phase 3. If the next phase is the one of triumph, then it’s worth the while to endure criticism and disapproval because Bitcoin should not be too far away from entering phase 4 in view of the current unpleasant events all over the world.
Even then, however, there will probably still be critics who will not fall silent and deny Bitcoin its monetary value. Among them will once again be economists. There are the ones, who have been writing Bitcoin off again and again for almost ten years. Of course, they have made a name for themselves as staunch Bitcoin critics and earn good money at events and online debates because of that name. On the other hand, if these skeptics had invested in Bitcoin at one of the early stages instead of criticizing the cryptoasset, they would be much better compared to the of monetizing their tirades against Bitcoin. What an irony!
Internet of money
Besides a few bitter economists, a few other people will also not have realized that Bitcoin is money once it actually hits phase 4. These are the people who hardly ever have to carry out global transactions, but simply use money to shop in local supermarkets.
But those who think and act in a cosmopolitan way already know that Bitcoin is the first global money ever. Nothing else is as predestined for global value transfer as the mother of all cryptocurrencies. Bitcoin is the Internet of money.
The comparison with the Internet is good. The communication of information has also undergone evolutionary development. At the beginning of worldwide communication was the telegraph. However, it was still very limited in its scalability. The telephone, radio, TV and finally the Internet were all steps towards improvement. Today, the Internet unites all means of communication. Today, global information exchange has been scaled to a greater extent than ever before. This is obviously to the benefit of the people.
Borderless value transfer
Bitcoin ultimately builds on the Internet (but can also be used independently) and thus globalizes the transfer of value. As economic empiricism confirms, the globalization of goods and trade has created unprecedented prosperity. Today we can only take a guess at the prosperity gains that will come from a truly globalized money.
In analogy to the above, physical gold and national currencies are the telegraph and TV. The yellow precious metal, in particular, is limited in its transportability or at least involves high transaction costs. State national currencies are not intended for the globalized world either but are ultimately linked to a national economic area, just as television stations are often only broadcast in a certain region. And even the currently hotly debated CBDCs, i.e. digital central bank currencies, will hardly be tailored to serve a global world either. The only Bitcoin enables truly borderless, unintermediated value transfer. As we said: This is true global money for a truly global world.