Slowly Then Suddenly

Every once in a while, humans stumble on a new breakthrough, be it in science, technology, or medicine. I believe another one is happening right now that will change the way humans communicate and interact with one another: Bitcoin.

To be honest, I’m disappointed in myself for not learning more about Bitcoin earlier. I’m usually open-minded and willing to learn about new things, especially ideas that oppose my own thinking, but I was slow to the party on this one.

I’ve always had a shallow interest in Bitcoin, and because I’m an investor, it gets thrown around a lot in the finance space. I’d heard of it, for sure, but never took the time to understand it. Until now. Even though my learning journey has just begun, the concepts and ideas around the formation of Bitcoin and its economic underpinnings are absolutely fascinating.

For the first time in history, we have a truly decentralized, borderless, censorship-resistant bearer asset that cannot be interfered with by anyone or anything. No central authority controls it, and no one can mess with it.

Bitcoin’s rules are defined by mathematics, and the network’s security comes from proof-of-work, which requires real-world energy expenditure. This use of energy anchors Bitcoin in physical reality. Using energy also makes it expensive to cheat the system, and no single person or government can change the rules without global consensus.

Unlike the fiat currencies used around the world, Bitcoin has a transparent and predictable monetary policy. The fiat system relies on trust in institutions to manage inflation and stability, but the ability to increase the money supply can erode this trust over time. In the fiat system, those close to the source of the money are protected and can make use of this newly created money for their own benefit, while middle and lower-class people suffer in an non-transparent way. In economics, this is called the Cantillon Effect.

I truly believe that Bitcoin offers pure freedom for humanity and that it is a force for good in a world that is becoming more and more polarized.

I have plenty more to learn, but for now, I just wanted to get some of my own ideas and thoughts down in writing. I hope reading this sparks your own curiosity to learn more about Bitcoin.

Thanks for reading.

J.H. Repetto