Someone asks you,
"What is Bitcoin?", or
"What makes Bitcoin valuable?", or
"Why should I believe Bitcoin is not just make believe made out of thin air money?"
When someone asks you this what do you tell them?
For some it makes sense yet for others it just sounds phony.
If given the opportunity to explain what such a thing like Bitcoin is then best of luck to you!
It's not easy to explain because it is difficult to understand.
In fact, I've met tons of people who often attempt to explain it to someone.
Yet they themselves do not understand it fully either which adds more of a language barrier to explaining things.
To much of my own I am extremely guilty of this!
To explain what Bitcoin really is, it is similar to explaining what Money really is.
To explain that you must fully understand money and I hate to say this but sadly a majority of people out there do not actually understand.
I have worked through these struggles and have a lot of success under my belt because of it now.
Now I am writing to people on Publish0x on my spare time in hopes that at least one person might benefit from these articles.
In this article specifically I aim to try and help others explain three main things:
- What is Bitcoin?
- What makes Bitcoin valuable?
- Is Bitcoin just make-believe?
This way readers can understand for themselves more about Bitcoin better explain to others!
Okay, so what is Bitcoin?
(image source: investopedia.com)
This question is easily the first question out of everyone's mouth.
What is Bitcoin?
It is a broad question which could be met with a simple answer.
Bitcoin is an Asset or what some consider a piece of Property.
Assets or Properties that people own are cash traded investments that hold some sort of value in exchange for the purchase.
In a way, Bitcoin is similar to buying a home that you later resell years down the line.
Some might understand Bitcoin as what people refer to as "Digital Real Estate" which is a great way to describe Bitcoin.
Okay, but like, what "is" Bitcoin?
Maybe you understand how Bitcoin is like a digital piece of property which is great and all.
However!
Maybe you don't understand what Bitcoin is underneath that makes it an Asset.
This is exactly where people start to get confused and think Bitcoin is just made up.
They think at any minute Bitcoin will disappear and be gone forever.
Or worse! They think Bitcoin will automatically make them a criminal.
This could not be further from the truth then what Bitcoin is in reality.
If someone asks you what Bitcoin actually is besides just an asset.
The most honest response you can give them today is that Bitcoin is many things besides just an asset.
It was Bitcoin's goal to be more than just an asset since its inception!
The technology behind Bitcoin is similar to what institutions used for years prior except behind closed doors.
The technology that "is" Bitcoin has continued to work since birth.
The technology itself has evolved in ways that it has created very successful people as well as businesses.
Bitcoin is asset technology free from central control and open to anyone with access online.
What makes Bitcoin valuable then?
Bitcoin might be an asset maintained by really awesome tech stuff like blockchain.
However for some it might still be hard to see the value in this.
After all, this world already has money, assets, and cool technology.
What gives Bitcoin any sort of worth at all?
It may sound like it is just something a bunch of rebellious computer nerds from back office banks created.
It probably sounds like that too because that's actually exactly what Bitcoin pretty much is.
Firstly, Bitcoin is valuable because it has the ability to hold value.
Secondly, that value or worth has the ability to fluctuate based on how much value Bitcoin can hold.
Bitcoin is also valuable because it was made free and open for anybody to access.
These are just 3 things that give Bitcoin its famous price tag.
There are actually many other valuable things to consider when it comes to Bitcoin's price.
Now you may already know a lot of these things of course so I won't go over these in detail here.
Bitcoin has held its worth for a long time now!
We already know that Bitcoin is many more things than just a money asset.
It is an accumulation of all of these things that has ultimately determined Bitcoin's value.
Is Bitcoin made out of "air" like some say?
There are so many old investors that still continue to think Bitcoin is phony make-believe criminal stuff.
If that were true though, why do people steal Bitcoin?
Bitcoin wouldn't be stolen if it were truly worth nothing and going to disappear at any moment.
We know what Bitcoin is, we know what it has done already, and it is so successful that it is not going away.
Bitcoin is comparable even to the likes of Gold which most would say is not made out of air.
In fact, Bitcoin has a valuable property that Gold itself will never possess.
Bitcoin is easily transferable compared to Gold and it can be done safely.
The next time someone tells you Bitcoin is made out of practically nothing.
Ask them if they have their Gold Bar on them because you might want to buy it with some Bitcoin.
Then proceed to tell them about how people are starting to buy Bitcoin with Gold.
That should get them thinking more about why Bitcoin is what it is today.
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Thank you for so much for reading!
https://www.trevorbalthrop.com
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