Bitcoin and the fairy tale about the worthlessness of BTC

Bitcoin (BTC) marked a new all-time high overnight with prices near $67,000. But some critics continue to see Bitcoin as worthless and expect zero value.

Bitcoin (BTC) has set new all-time highs of well over 65,000 U.S. dollars after the launch of an ETF in the U.S. on Wednesday and Thursday night and briefly even scratched the mark to 67,000 U.S. dollars. Exclamation mark. But voices like those of James Dimon, the head of the major bank JP Morgan, who say: the true price of Bitcoin is zero, BTC has no real value, Bitcoin will fall to zero, persist stubbornly. We are sure: these critics have not understood the world’s first and most important cryptocurrency properly at all and – to put it casually – are spreading nonsense. Here are some arguments:

1. Bitcoin protects against censorship. Whether Wikileaks or Pornhub, whether opposition media in Russia or controversial opinion portals in the USA – all of them are united by the fact that they have experienced being cut off overnight by common financial service providers such as PayPal, Mastercard and Visa. In order for them to maintain their offerings, such online services have opened payment channels for Bitcoin. After all, no one can stop transactions in BTC; they happen without an institutional middleman. Some in the Western world may underestimate (financial) censorship, but it happens. Bitcoin offers a now established way out of this and this has more than a moral-ethical value in itself.

2. Bitcoin cannot be confiscated. “Not your keys, not your coins,” is the saying in the crypto scene. This means that without the private keys as a password to a Bitcoin wallet, no one has access to funds in BTC. This also means that authorities cannot access Bitcoin accounts even with great effort. In totalitarian systems, private property is often confiscated as a matter of routine. But even in democracies, prosecutors sometimes block accounts before a trial has even taken place and a verdict has been reached. Defendants then cannot efficiently fund their defense. With Bitcoin, an official letter or phone call to banks does not achieve the freezing or seizure of private financial assets. This has its value not only in dicey situations.

3. Bitcoin protects against monetary policy and inflation. Because with Bitcoin the rules are clear, 21 million BTC will exist one day and almost 19 million of them have already been generated. Through the quadrennial Bitcoin Halving, inflation protection is eternally anchored in the code of BTC. The strategies of Western central banks to cushion economic consequences of the Corona pandemic by “printing” fiat are controversial. Inflationary effects are now evident and it is unclear, to say the least, how they will be recaptured. In emerging and developing economies from Venezuela to Turkey, inflation is a recurring horror scenario. Bitcoin hedges against this.

4. Bitcoin has intrinsic value. “Intrinsic,” huh? Up to philosophical spheres the discussion about the value of BTC is conducted and intrinsic is then the magic word. It aims at the value of a good that does not depend solely on the eyes of the beholder. Gold as a rare commodity with functions ranging from jewelry to means of payment to material for technology is cited as a prime example of intrinsic value. However, the amount of energy required for Bitcoin alone clearly indicates that BTC cannot be denied intrinsic value either.

Conclusion: Bitcoin’s value is decoupled from the daily price

Bitcoin has been pronounced dead dozens of times in its history, but has instead gained value when measured in U.S. dollars over longer periods of time. All attempts to hack Bitcoin’s network have failed. If nothing else, the success of the publicly traded ProShares Bitcoin Strategy ETF proves how BTC has arrived and been accepted in the mainstream. Muddled warnings of a worthless Bitcoin lack logical arguments as well as practical evidence. You don’t have to be a Bitcoin maximalist to understand: BTC shows its value on many fronts every day and does not even need to be measured against daily prices in US dollars or euros.

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