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Critics have asked this question for more than a decade. At first glance the comparison can seem reasonable. Early adopters acquired bitcoin at very low prices. Later participants entered at higher prices and the earliest buyers have benefited the most. Because of this pattern some people conclude that the system must rely on new buyers paying earlier ones. That… Continue reading
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Gold is often said to have intrinsic value in debates about money. It is pointed out that, unlike Bitcoin, it can be used in jewelry and industry. This is sometimes taken as evidence that gold’s value is somehow built into the object itself. This article explores what value is and how it is assigned. Properties Are Not Value Gold… Continue reading
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If fiat worked as intended, the case for Bitcoin would be much weaker. This article outlines the strongest case for fiat currencies: what they are designed to achieve, where they offer structural advantages, and where challenges tend to emerge over time. The Ideal So what, then, is the bullish case for fiat? At its best, the fiat system aims… Continue reading
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Bitcoin is scarce. Its supply is limited, and dividing coins into smaller units does not create more of it. But scarcity alone does not automatically create value. Scarcity Is Everywhere Many things are scarce without being valuable. A random object may be unique, yet worthless if nobody wants it. Scarcity simply means that something is limited. Value appears only… Continue reading
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“Bitcoin is nothing. They can just be split into smaller parts named ‘bitcoin’, and suddenly more bitcoin has been created.” A common criticism of bitcoin goes like this: if it can be divided endlessly, how can it ever be scarce? I will call it the divisibility argument in this text. It targets the 21 million bitcoin supply cap. The… Continue reading
