TD₿: Bitcoin as Sound Money by Saifedean Ammous with Pierre Rochard and Michael Goldstein
TL;DR Bitcoin is not an investment; Bitcoin is money.
Hey Bitcoiners,
The other day I was being interviewed for a podcast, and someone asked me, “How is Bitcoin an investment? It doesn’t generate cash flows. It doesn’t produce anything in the real economy. So how is it an investment?”
My reply was simple…Bitcoin is not an investment. Bitcoin is money.
I believe that investors have become so ingrained in thinking that money can’t be a good place to store value over the long term because they are so used to fiat currencies that have dominated their worlds.
Fiat currencies, of course, are guaranteed to lose value over time. This has resulted in a whole industry whose sole purpose is helping other people beat the rate of the dollar’s depreciation through investing.
But Bitcoin is different. Bitcoin is sound money in that it’s actually scarce. It has economic value because it serves the function of money better than any other monetary good today.
Unlike fiat currencies, Bitcoin has the ability to maintain its value and therefore increase purchasing power over time. With Bitcoin, individuals no longer need to gamble their life savings in the stock market just to keep the fruits of their labor. They now have a money that actually allows them to save.
Pierre Rochard and Michael Goldstein sat down with Saifedean Ammous a few years ago to discuss this very topic in this great podcast. (12/02/2017)
You don’t invest in Bitcoin…you save in it.
Tick tock next block,
Cory Klippsten
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“Bitcoin is fundamentally different because in Bitcoin, you don’t owe anyone anything, and no one owes you anything. It’s not a system based on debt.” - Andreas Antonopoulos, Bitcoin Educator and Author
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