Decentralized Podcast Host and Amber CEO Aleksander Svetski Talks About Bitcoin’s Importance
Aleksander Svetski, an Australian cryptoanalyst, co-host of Decentralized Podcast and the CEO of Amber app recently gave a talk on the importance of Bitcoin. In his recent talk, Svetski touched on various aspects of the digital asset and said that the decentralized currency is way more important than what many of us think of it.
Bitcoin turned a decade old this new year, amid crashing prices and bearish market trends. While the importance, acceptance, and popularity of the digital asset have been on the rise despite the declining prices, people often tend to see it just one of the two ways. Some look at it as a technical marvel while many look at it purely from a monetary point of view.
Svetski falls on the latter side and in order to understand his perspective one needs to understand how he thinks or where does his inclination for the monetary side of Bitcoin come from. The answer is “Societal Stack“, Svetski believes that the basis or reason for any civilized society's existence comes from their ability to communicate.
After communication the next major element is money and the use of money is also dependent on the communication which allows for the further societal system. Svetski says money is quite similar to communication, where the two parties involved must agree upon pre-decided rules. Rules can be flexible but not arbitrary.
Svetski goes on to compare money with the current state of cryptocurrencies. Earlier the money was based on the ledger of goods which the community agreed upon and decided that certain goods would possess a certain value which can be exchanged against other commodities. Only when the community members started to deal outside the community, the need for a system like today arose. The newly formed system of money allowed for communication to grow and interact with other communities.
So, What Is The Exact Definition Of Money?
Money is anything that represents a certain value, beyond the materialistic valuation of its own. Money represents trust and acceptance, where a piece of paper worth nothing with printed numbers have been accepted to carry a certain value which the majority of the community agrees upon.
The monetary unit which has been accepted must be hard to produce and harder to counterfeit and must be limited in supply. along with it, the monetary system must be resistant to change, censorship and manipulation.
The current system of Bitcoin checks all the list which Svetski considers to be of monetary value. Bitcoin is limited, almost impossible to counterfeit and limited in supply.
Svetski says that Bitcoin is the only crypto or digital asset which fulfills all the requirements of being considered a monetary unit and fundamentally important about money. Svetski says that the current system of banks and government-issued fiat are not censorship resistant or even scarce, but only Bitcoin fulfills all those necessary conditions in his book.
Svetski believes that Bitcoin is more of an opportunity for a new beginning rather than just a digital form of monetary unit. Svetski emphasis that Bitcoin would work it comprises if a unique combination of different disciplines, the passion of the userbase and the anonymity of its founders. It also prioritizes on the basic function of scarcity and digital nature.