What makes Bitcoin Valuable?
Bitcoin is a very complex topic, and because it touches so many disparate disciplines, ie; math, money, finance, social engineering, game theory, computer science, economics, etc, it’s impossible to really distill a single reason as to “why” Bitcoin is valuable.
In saying that, we’ve take what we believe are four key elements that the community and its participants on all levels, collectively find value in.
Bitcoin is a push-based system wherein users have full control and sovereignty over their own funds. No one is able to tamper with transactions and once a payment has been sent or received, it is irreversible.
- Censorship Resistance
Undoubtedly one of the most compelling features of Bitcoin is that it can’t be censored, controlled or manipulated. This means neither individuals nor transactions can be banned from the network. Once a transaction is broadcast, no one can prevent it from being confirmed.
- Open & Permission-less
Linked somewhat to censorship resistance, the Bitcoin network is said to be ‘open’ and ‘permission-less’ as anyone, anywhere, can get involved. There are a myriad of options for individuals to store, send & receive coins without requiring permission from gatekeepers of any kind.
- Fixed Supply
In the early days of Bitcoin, a hard supply limit was implement, meaning that only 21 million coins will ever be in circulation. The supply cap means that arguably for the first time in history, we have a ‘fixed supply’ money that can map directly to value, work & input – all which are derivatives of the ultimate fixed supply unit, ie; time. This dis-inflationary essence has seen widespread appeal as it directly contrasts the prevailing paradigm of government-controlled inflation, and the subsequent devaluation of fiat currencies.
Together, these various properties create a secure, censorship-resistant and decentralised network of value transfer that ultimately make Bitcoin itself valuable.
Censorship: “The suppression of speech, public communication, or other information, on the basis that such material is considered objectionable, harmful, sensitive, or “inconvenient.” Censorship can be conducted by governments, private institutions, and corporations”