Opinion: Bitcoin Is To Currency What The Internet Was To Communication

A few weeks ago I received a call from a legacy analyst who wanted to analyze bitcoin with traditional fundamental analysis such as cash flow, balance sheet, earning projections — basically what I would call old-school analysis. I explained that digital assets are a new asset class and that they can’t be measured in a traditional legacy manner. Just as when the World Wide Web was founded by computer scientist Tim Berners-Lee in 1990, few could imagine what it would grow into and how it would change the last decade of the 20th century. 

The old ways of institutions structured like a pyramid, with power centered at the top, are fracturing. We still operate primarily on structures and institutions that go back to the industrial revolution, and these structures are failing to scale. Just look at our schools, our businesses and our politics, which are all splitting at the seams, and this is a process that is taking place around the world.

We live in a world where the internet is a global society but our institutions are not. This failure to scale and lack of transparency and trust is because those in power, those making decisions, seek power.  It is this lack of correct architecture of the old systems to adapt that is making the blockchain such an important project, because it brings back trust, decentralization, and immutability to institutions. We can now conduct transactions worth billions of dollars with trust because we now have trust with scale in a decentralized network that has consensus globally. 

That is a very powerful and disruptive technology, all based on cryptographic mathematics. Bitcoin is a protocol like HTTP/SMPT/TCIP. Money has three properties: store of value, medium of exchange and unit of account.  Over the past 50 years, all the governments of world have added a fourth value: system of control.  Governments use money, or the banking system, as a way to monitor and control its citizens as they flow around the world. That “system of control” is now over, and it’s called bitcoin.

I believe we are still in the early days of what most people call "The blockchain" A.K.A. bitcoin because they can’t grasp the concept of a decentralized ledger that can be a peer-to-peer and nonhierarchical. It's happening.

Some think bitcoin is digital gold, some think of it as a currency, others consider it a payment network, and others still consider it something else. We are in the early days, and we're still laying the infrastructure, so we can have increased capacity with lower fees in a decentralized way. The entire space is a disruptor. Just as the internet allowed the “Amazonization” of the retail sector and the creation of billions in market cap with companies like eBay Inc. EBAY and PayPal Holdings, Inc. PYPL. Just look at how many companies didn’t exist prior to the internet. Bitcoin is a protocol, and there will be many layers built on top of it like Rootstock, the lightning network, and MimbleWimble. So NO it’s not too late to buy bitcoin. It buys your monetary sovereign freedom from government.

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