Analog to Digital

People new to Bitcoin typically view it as something intangible and imaginary. Disbelief or skepticism are the typical overarching emotions these people feel. This is normal. Anytime in our history there has been a technological innovation that prompts a paradigm shift in our society, people have met it with opposition.

People hated the first cars.

People thought flight was impossible.

People didn’t think credit cards would be used for everyday purchases.

People thought the internet was a fad.

People couldn’t understand why anyone would want a touchscreen phone when they had a keyboard.

These innovations were all obvious in hindsight, Bitcoin is no different.

In a much simpler sense, I believe Bitcoin is merely a return to a form of currency that humanity has used for millennia. With this perspective, Bitcoin isn’t a new idea, it is just an iteration and continuation of human behavior that we have always gravitated toward: The behavior of pursuing and storing wealth in the hardest currency available.

The video linked below explains this whole perspective but I the point I will emphasize is that living under a system of fiat currency is nothing more than an “error” in the code of human civilization.

We have become accustomed to inflation and currency devaluation since President Nixon took the dollar off of the gold standard in 1971 but outside of the last ~50 years, this was not the norm.

The norm was having a hard currency backed by a hard asset. Before the technological revolution that now enables anyone in the world to instantly connect with one another, gold was where the value was largely stored.

Over the last 5,000 years, the empires that held the most gold generally were the world leaders. Humanity, across the globe and across thousands of years always gravitated toward using the scarcest and hardest asset to store wealth.

By chance or by pure luck, those of us alive today are actively living in a world where we are transitioning back to storing wealth in the hardest asset. You can view it as humanity correcting the “error” in the code that fiat currencies and money printers have perpetuated. This time, the asset is based in cyberspace instead of the physical world. This time, the asset is Bitcoin, instead of gold.

When you think about the fact that the technology we have today enables essentially the entire world to be interconnected at a moment’s notice, it only makes sense that the store of value that humanity is transitioning to now is one based in cyberspace.

Analog to digital is the perfect three-word phrase to summarize this entire movement. In an ever-increasingly digital world, it only makes sense for the next iteration of the world’s store of value to be digital. It would not make sense for gold to continue as the world’s store of value when nearly everything today demands the instant accessibility that the internet and other technology provide.

In the future, transporting tons of gold across the ocean will be nothing more than a history lesson. Instead, nation-states, corporations, and individuals will instead opt to send a Bitcoin transaction for a fraction of a fraction of the cost at an essentially instant speed compared to traveling across the ocean. The ease of cyberspace makes it much more feasible to store value than any physical asset.

Technology has evolved to connect the world and our digital footprints are only going to increase.

It only makes sense that as society continues to expand digitally, the store of value we use matches this society.

Gold to Bitcoin.

Analog to digital.

This transition will be obvious in hindsight. For some, it already is.

Stack SATs.

The views and opinions expressed here are for entertainment purposes only and should, in no way, be interpreted as financial or investment advice. Always conduct your own research when making an investment or trading decision, as each such move involves risk. I am not a financial advisor and do not claim to be qualified to convey information or advice that a registered financial advisor would convey to clients as guidance. Nothing contained in this e-mail/article constitutes, or shall be construed as, an offering of financial instruments, investment advice, or recommendations of an investment strategy. If you are seeking financial advice, find a professional who is right for you.