Bitcoin’s Innate, Inherent Value As A Digital Asset: “Mathematical Scarcity Beats Perceived Scarcity”
Bitcoin Will Always Be A Valuable Digital Asset, Says Experts
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, the world's flagship crypto fancied centralized financial institutions like Wall Street, as well as the Incumbent government and the mysterious genius never made it a secret.
The Pseudonymous father of Bitcoin and modern-day blockchain technology once embedded a Financial Times headline, which outlined a facet of 2008’s great recession into his/her brain child's first ever block.
Bitcoin And Its Many Misconceptions
Quite a lot of people have misconstrued the actual value of Bitcoin.
A lot of people have labeled it a Ponzi scheme that generates easy money for hodlers, and not a borderless medium of exchange it genuinely is.
Although several cryptocurrency experts and industry executives have leaped to its defense, telling anybody that cares to listen that Bitcoin and all other altcoins are of much more significance than get rich quick schemes.
And this, not mere price speculations is what will take Bitcoin past its $20,000 all-time high to new heights, above and beyond what many of us think is possible or sensical.
What Is Bitcoin?
Bitcoin (BTC) is a blockchain-based digital currency that functions as a store of value, one potentially even better than gold, primarily due to its decentralized and borderless digital properties.
Commenting on the topic, the head of Lisk Max Kordek explained that Bitcoin is a ‘’store of value with complete independence of any market’’, which to a considerable extent makes a small allocation into the asset's logic.
Explaining further, the Lisk boss said that if you coil cryptocurrency down to its roots, it can also act as a ‘’secure investment next to gold’’, which implies that over a long period, BTC will either hold its value or see its purchasing power swell considerably.
Crypto expert, Dan Held, who is also the co-founder of Interchange believes that it would be tough to argue that Bitcoin was not created by Satoshi to serve as a store of value.
He argued that all the essential properties of Bitcoin, including its cardinal -21 million supply cap, ten-minute blocks and block size caps, coupled with Satoshi's statement, where he/she/they mentioned ‘’scarcity’, ’’long-term growth’’ and commodities, all points to the fact that the crypto asset was created to be a store of value.
While both Held and Kordek are of the opinion that BTC can compete with gold, basically because BTC has stronger features, due to the fact that it cannot be confiscated, it is portable and has a limited supply, other observers like DLT researcher, Willy Woo is of the opinion that bitcoin can easily exceed gold’s market capitalization because mathematical code-ensures scarcity, which bitcoin enlists, easily beats perceived scarcity.
Woo continues further, by explaining that gold’s hegemony as the de-facto store of value might not be for long, as it might be usurped at any time, basically due to the infinite demand for gold, and as on earth supply wanes, creating a gold rush in outer space.
The winklevoss twins once stated that Bitcoin is ‘’better at being gold than gold itself’’ and may pass its physical counterpart with ample time, which is a pointer that Woo is not alone in his observation.
Although the world is yet to come in agreement with this fact, the feeling in and around the crypto community is that fiat and the traditional way of transaction will sooner or later give way to cryptocurrency in the nearest future.