Infinite Importance
Happy Bitcoin Friday! — Feb. 14, 2025
“If false, it is of no importance, and if true, of infinite importance. The only thing it cannot be is moderately important.”—C. S. Lewis
Infinite Importance
C. S. Lewis said that about Christianity.
There are very few things in this world that are truly zero sum or black and white. Eternal salvation is probably one of them. I think bitcoin fits that bill too.
Bitcoin is either of infinite importance, capable of enabling financial optionality for centuries or more to come. Or, it will be isolated to a hobbyist movement.
In many ways, bitcoin has already moved far beyond a hobbyist movement of computer scientists and libertarians.
The largest asset manager in the world is in the bitcoin game. Individuals and institutions the world over are in the bitcoin game.
The bitcoin network, miners, energy and data center providers are in the bitcoin game and their involvement is only increasing.
Hash Rate
Follow the hash rate.
Hash rate measures computational power.
Hash rate rises over time.
Bitcoin price has too.
Price and hash rate don’t always track together. Price is more impacted by external factors than hash rate. Miners hash (or work) constantly.
The more parabolic the hash rate goes, the further entrenched the bitcoin network is in the world. The more difficult it is to disappear.
Bitcoin is the most powerful computing network in history. Its near 100% uptime and ability to withstand threats have proven its resilience and security.
If bitcoin is just a hobbyist movement, it’s probably the most successful hobbyist movement of all time. That’s why it’s more than that though.
BTC v Crypto
I cannot emphasize the difference between bitcoin and crypto enough. Bitcoin is rooted in the real world via mining, node operators, and other infasctructure.
Bitcoin has no single point of failure or key person or institution. No matter how influential you think Michael Saylor or BlackRock are, they can disappear tomorrow and the bitcoin network will continue on, likely with higher bitcoin prices over time due to the concept of supply and demand if any bitcoin is lost in their disappearances. The same cannot be said about any other cryptocurrency.
Key people, organizations, and government regulations all play an outsized role in the success of the vast majority of all other cryptocurrencies.
Digital v Virtual
Bitcoin is digital. It is digital (and virtual) but also tethered to the real world via hardware and energy.
Other cryptocurrencies are largely virtual, existing only online, tethered to nothing or no actual form in the real world with the exception of the people creating them with keystrokes on the keyboard.
This cannot be overstated.
Gigi, an old school bitcoiner, gave a masterclass on this digital vs. virtual topic and how bitcoin’s digital scarcity is the first of its kind and so groundbreaking.
If you want to go down the rabbit hole, give it a read or listen.
From Here
If bitcoin did nothing else from here on, it would have already done enough to cement itself in the history books when it comes to money and technology.
What bitcoin could do from here revolves around more humanitarian and inclusive monetary movements. It has already accomplished digital scarcity.
Investor Cathie Wood says that bitcoin is the “first global, private, digital, rules-based monetary system.” It’s a monetary protocol with rules all users must play by.
Yes, bitcoin’s market cap is about $2 trillion. That means something to Wall Street or bitcoin speculators. It even means something to bitcoin companies or miners looking for funding and support which is important. But market cap and price is just a result of what bitcoin enables.
No other option exists to engage with or store value in a completely self-sovereign way without fear of that value being seized or manipulated.
Bitcoin is freedom money.
Money, however, is just the first application of the freedom technology that is bitcoin. We have only scratched the surface. It gets more interesting from here.
New to bitcoin?
Overwhelmed by it?
Burnt out from headlines?
Get back to the basics.
Read my one-page bitcoin starter guide.
Then, keep learning and engaging.
I’m glad you’re here.
Enjoy the weekend!
I am not an investment or financial advisor. All opinions expressed are mine alone. Read the full DISCLAIMER on the About page.
HODL on Garth.