This week we thought we would take some time to reflect on the Fear, Uncertainty and Doubt (FUD) surrounding bitcoin and its network. These stories and FUD only really seem to rear their head every few years or so when bitcoin is in the spotlight and regulators are anxious.
Bitcoin is legal tender. These are words we didn't really expect to hear in 2021. Yet, somehow, on the 8th of June 2021, in Central America, the country of El Salvador passed a bill that officially recognises bitcoin as legal tender in its country. It took 12 short years to go from the online chatrooms of Cyberpunks and computer scientists to nation-state money. To say we are proud is an understatement.
“Bitcoin has no fundamental value” has long been the war cry for many traditional financial participants. This week we thought we could shed some light on this short-sighted mantra.
One of the most common questions we get when talking to people about digital assets usually concerns the difference between Bitcoin and Ethereum. We believe this confusion stems from the idea that both of these assets compete with each other as money.
Money has always been technology. It allows society to store time, effort and sacrifice today and redeem it for time, effort, and sacrifice in the future. Similar to how a title deed gives the holder a claim on a property, money is a claim on human time. When we exchange our time for money we hope that it can hold value for long enough to enable us to trade it for something we want.