Read now to learn how Bitcoin produces value as a decentralized monetary network.
The growth of the Bitcoin network over the past 13 years is staggering. Billions of dollars’ worth of wealth are stored on it and millions of people are using it to secure their financial freedom and future. But Bitcoin is not without its detractors.
There are likely many people who genuinely misunderstand the need for Bitcoin, but certainly others whose misconduct stems from malintent rather than a sincere confusion about Bitcoin. While I won’t claim to be an expert on distinguishing the two, a number of people that observers believe are highly intelligent have recently come out against Bitcoin in stunningly uninformed ways.
Take this quote from billionaire investor Warren Buffett for example:
Whether [Bitcoin] goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything …
Or this comment that billionaire founder Bill Gates made just a few days ago:
I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it, so not adding to society like other investments.
Both men are pillars of the business community, highly respected for the wealth they’ve created and the advice they’ve given. When they speak, including about Bitcoin, a lot of people listen. And therein lies the problem, because they and others like them have completely misunderstood the productive capacity of Bitcoin.
What Does Bitcoin Produce?
If you, like Warren Buffett and Bill Gates, are thinking of productivity only in terms of companies producing computer software or farmland producing food, then you’re missing the point: production of value isn’t synonymous with the production of tangible goods and services. As examples, let’s look at a couple things that Bitcoin and its blockchain produce:
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This is not financial advice. This newsletter and related content are for informational purposes only. Cryptocurrencies and digital assets can be risky. Always do your own research before making any sort of investment.
