Bitcoin Hasn’t Dethroned the US Dollar… Yet.

A trillion dollar asset is undeniable and we can no longer compare it to a Dutch Tulip. But can we compare it to the US dollar? Or the Federal Reserve? Well sure, but does it warrant that kind of comparison? Not yet…

Something we don’t always mention: the US dollar is the world’s reserve currency for a reason; The US military is the strongest in the world. The US dollar is a bet on continued sovereignty of the United States and — even in the long-term — this is a safe bet. But what about Bitcoin? Well, it’s a bet on the internet. How valuable is the internet and internet money? Perhaps more valuable than anything on earth — including countries. Purely speculation of course, but just think about Adam Smith or Carnegie for a second. What are things worth? Well, what kind of value do they bring to people? The internet doesn’t protect people with its military, but it does offer every single person on earth a voice and access to information. That is worth a lot. Is it more valuable than the Federal Reserve? The US dollar? Not yet.

“But, but, Bitcoin is too volatile!” Yeah, it is. You’re right. It will probably continue to go through cycles of boom and bust. But that is the nature of price discovery. Institutions are starting to trickle in, adding Bitcoin to their balance sheets. The biggest players — the central banks — have yet to buy with much conviction, but they will. Oh, they will, and when they do… Can Bitcoin reach the top levels of fiat money? I think it’s a question of does the internet provide as much value as any sovereign nation in the world? And I think the answer to that is: fuck yeah.

writer- irreverent AI, comedy, absurdity. Books: https://www.amazon.com/gp/aw/d/B091WFGG9L/ref=dbs_a_w_dp_b091wfgg9l