Why exactly people buy Bitcoin

People buy bitcoins for these reasons (and more):

1. By purchasing Bitcoin you are sending a message to the creators of fiat currency that printing ~$17 Trillion (in USD) worldwide since 2008 is not cool, as anyone knows that increasing the supply of something will decrease the cost for each one. It’s simple math and applies to currency time and time again as each unit of currency is worth less the more of it there is. This translates to making your hard earned money worth less and less over time. This punishes the savers and responsible people that have been delaying gratification and investing in themselves and rewards people who are locked in debt living paycheck to paycheck.

The modern dollar has depreciated over 95% in purchasing power, since it was introduced in 1913. Does this sound like solid money? Keep in mind that this is nothing new, fiat currencies have been around since the dawn of man as even the Romans reduced the amount of silver in coins down to less then 1% as a way to create something out of nothing. Ask any 10 year old mentally challenged kid if you can create value out of thin air and he will tell you NO. Don’t be fooled by all the smoke and mirrors of ‘modern finance’ telling you that the system needs inflation or monetary expansion to keep going.   The current system is designed to force you to over-consume and trade your time for money (earning salary wages for your labor), and not be able to invest and build assets that make you more money on your money.

2. You like technology. Bitcoin represents really cool technology. You have the mashup of mathematic cryptography, modern worldwide telecommunications, and peer to peer communications. Without any one of these technologies the Bitcoin idea would not work. You needed all the RSA type public key based algorithms , the ‘networkization’ of the world to have somewhat reliable high speed internet, and then the innovation of a bittorrent type peer 2 peer networking system.  It’s just like James Burke used to say with his Connections show about how the every modern day convenience you enjoy was built on other technologies before it.

3. You want to send money anywhere in the world almost INSTANTLY and FREE. This is what gets people really thinking about the future. The cheaper and faster attributes of any system will always win out as history has shown over time. It might take a while for people to adjust, but there is no way protectionist governments and elite financial institutions can hang on forever, once the tide shifts to the cheaper and faster methods (which it always does) then everyone will be enjoying a payment system that is just overall more efficient.

4. You don’t want a middlemen taking your money for not providing any service. Paying with credit cards, checks, money orders, etc…someone is paying a fee to a lazy middleman that just validates and secures the transaction and helps provide counterparty risk. Bitcoin technology has made these organizations irrelevant as the services they provide are not needed for most transactions.  As the old saying goes, ‘100 lines of python made your organization irrelevant’, as software development leapfrogs yet another antiquated industry. Currency is not immune to technology innovation.

5. You don’t want a middleman being the gatekeeper to decide if and when you can transfer YOUR own money. Organizations like banks and governments can freeze accounts and steal all your money at will at the whims of their desires.

6. You want currency creation policy based on mathematics and not on the daily changing desires of rulers. Bitcoin is released on an exact schedule that you can count on and plan a future for until at least 2140.  What is more absolute then knowing the Bitcoin release schedule well into the 22nd century? Anything else rock solid based on laws of math? Fiat currencies are created for the short term gains of whomever controls the printing presses at that time without regards to the ramifications of who is going to pay for it down the road. Creating more debt is just kicking the can and not creating a long term and sustainable solution that people can trust and believe in.  Why should anyone pay their personal debt when the government can’t pay theirs? Government is sending the wrong message by not being responsible with it’s money in the first place.

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