Bitcoin’s Price Is Not The Most Important Measure For The Leading Digital Asset
Bitcoin (BTC), the most popular digital currency, seems to have put an end to its bear market that started in January 2018 after reaching $20,000 a month earlier. Because of this recent price increase, individuals in the crypto community and mainstream media, have been very excited about the digital asset and how far it could go. Nonetheless, Michael J. Casey believes that there are many other things behind Bitcoin to pay close attention to.
Bitcoin: A Peer-To-Peer Decentralized Network
Although there are several bullish articles and experts about Bitcoin, there are others that believe that the digital asset has no intrinsic value. Clearly, Bitcoin is not only a price moving every single day, is much more than that. However, Mr. Casey says that thinking about a price metric that is denominated in a fiat currency that crypto advocates want to replace.
For Casey, Bitcoin’s real value is related to the fact that the decentralized system created ten years ago by Satoshi Nakamoto continues working as the first day. Everything without a centralized authority and with users being able to process transactions in a very easy way.
On the matter, Casey wrote:
“The more this goes on, the more it reinforces the powerful vision behind Bitcoin: a peer-to-peer, disintermediated system for exchanging value around the world. And in that context, we can also think of Bitcoin the cryptocurrency – differentiated from Bitcoin the system – as a unique, provably scarce digital asset that expresses the overall value in that vast potential.”
Nonetheless, there are some issues that must be solved by developers if Bitcoin wants to keep growing and reach mass adoption. One of these issues is scalability. The Lightning Network (LN) is being developed but it will take a longer time for it to be released to the market.
At the same time, Bitcoin can be compared with gold, since it is also considered a store of value. Although it is not used as a day-to-day currency, the belief in its value is widespread. As Casey mentions, gold’s value comes from the belief that gold has the capacity to function as a depoliticized global system of exchange that cannot be manipulated. Its value also comes from the fact that humans have always believed in its value. Now, Bitcoin became digital gold that has been created in the 21st century.
As he mentioned, Bitcoin at $5,000 is important because it validates the core proposition of Bitcoin’s resilience and promise.