I’ve been listening to Bitcoin podcasts and reading posts on here and I’ve noticed a lot of you Bitcoiners are falling into the same logical error that I would expect a Keynesian economist or a particularly smooth-brained chimp to fall into. Fortunately I’m here to educate you guys.
Money is NOT a tool primarily for spending. This is NOT the most important feature nor primary purpose of money and is NOT why money has value. You do NOT use money when you spend it on a ham sandwich.
Money is a tool primarily for saving. This is the most important feature and primary purpose of money and is why money has value. You begin using money when you save in it and you cease using money when you exchange it for a ham sandwich.
This is why Keynesians and midwits with limited cognitive ability do not and will never see the value of Bitcoin. In their limited minds spending is what is important and this is why they go on and on about nonsense metrics like GDP. Bitcoin is not especially well suited for transacting, certainly no more so than existing monetary options. This is a problem Bitcoin does not solve better than its currently available competitors. So when I listen to a podcast where someone is talking about how they bought an Egg McMuffin in El Salvador with Bitcoin and it “worked very well” it becomes clear they are blind to the real value proposition of Bitcoin. This is not a problem Bitcoin solves.
Bitcoin’s strength aligns with the true though often overlooked primary purpose of money–saving. Instead of saying “I used Bitcoin to buy some McNuggets and it worked really well!” a Bitcoiner with a correct understanding of money would say “I used Bitcoin as a savings vehicle for the past 5 years and didn’t get rekt by the inflation that hit everyone else. Bitcoin worked really well!” Home prices have doubled in the last 5 years? That’s a problem for people saving in an inferior money but it is not a problem for Bitcoin savers. Housing prices have dropped by about 90% for those saving in Bitcoin.
It is only when you realize the important function of money is to save that you will realize Bitcoin will inevitably replace every other form of money because it meets this need better and more efficiently than any other market option. The other stuff people are focusing on simply do not matter. If Bitcoin had a bug in its code that caused an interdimensional portal to open where by a leprechaun came out and punched anyone in the face every time they made an on-chain transaction, then Bitcoin would still be the best money and would still supplant the world’s existing inefficient monetary systems.
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