Cryptocurrencies: the non-death of Bitcoin

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But it is not surprising that, in a world where politicians have only four years to demonstrate achievements and positions in operative positions bordering on the state last less than a second, it is pretended that Bitcoin and the (r)evolution it brings about are seen and evaluated in the same time-preference period. But I’m sorry to tell you that this is not so.

Even more, it is not surprising that few voices speak of the systematic failure of the current system of manipulable issuance and monetary multiplication that silently builds the scenarios for these debacles in the global markets.

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The pillars of Bitcoin

Beyond what one believes because he superficially read or heard from another, the promises of Bitcoin are really few, they remain intact and have such power that they are capable of demolishing the pillars on which the modern economy is based:

  • Bitcoin is the only monetary asset with certainty of scarcity: Unlike paper money that can be printed on demand and can be multiplied by banks, gold that can be extracted on demand, or other cryptoactives with decision-making power concentrated in a few, in Bitcoin its emission cannot be freely modified, nor can its extraction be accelerated with more machines, there is not even a central body that can decide to modify something. Without going into details about why this is so, it is shown that despite the pandemic, demand or supply, since its birth, Bitcoin continues to produce a new block with Bitcoins every ~10 minutes and the amount generated per block is reduced. unfailingly halved every 210,000 blocks (~4 years) ensuring a maximum existence of 21 million by 2140.
  • Bitcoin is a new trust model: On the one hand, nobody can concentrate enough power to impose a change in the code, therefore, it evolves by decentralized consensus. In addition, its code is open and allows anyone suitable to audit line by line of code and new suggestions. Also the traceability of the transactions allows to certify the genesis of each existing Bitcoin in the system, to demonstrate that it is not counterfeit and that its holder is the only owner. None of this exists in the other monetary systems.

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  • Bitcoin is real property: Given that each unit or fraction is unique, unrepeatable and fungible, and that the wallet that stores them is the only one in the world that can move them, having bitcoins is like having physical bills in a personal wallet or pocket safe, without import the amount. This implies that neither the law nor the force can retain or take the Bitcoins against my will and that once sent, there is no going back.
  • Bitcoin is efficient in every way: This degree of security, certainty and property is achieved with an incredible degree of efficiency in several aspects, anyone can “open” an account without any cost or filter, it does not need third-party custodians, it does not require laws or coercive power, it does not require of a central bank, it is highly divisible with a click, digitally transportable and storable, globally liquid, unforgeable and indestructible, and its transaction costs will tend to zero.

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In this way, Bitcoin is presented not only as the best monetary asset in historyand it simply has to persist resiliently over time, it has to expect states to keep issuing indiscriminatelycausing global havoc blocking accounts, generating wars and creating poverty.

Bitcoin also needs time to people understand the power they have in their hands, learn not to leave your bitcoins in the hands of third parties, which -just like when money is left in a bank- these platforms could block or adulterate balances, have failed systems or be directly fraudulent. Also a time to create more and better tools for non-technical people.

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But imposing a time when all this must happen or what is the range of time that must be measured to know if it can be a reserve of value, is a common mistake and in each descent it seems that time is upbut it was precisely because of the 2008 crisis when Bitcoin was born and the inflation in Argentina or this new US crisis continue to show why it is necessary.

Presideentity of the NGO Bitcoin Argentina and organizer of LABITCONF, the most important conference on Bitcoin and Blockchain in Latin America and the oldest in the world.-

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