Thursday, September 12th 2019 - Issue #568

How does Bitcoin retain value?

A common weak handed FUDline that's consistently flailed towards Bitcoiners is that it is a pOnZi ScHeMe. The price only continues to go up because greater fools keep entering the market. Paying for the bags of early adopters and then turning and looking for more greater fools to dump their bags on. A long game that will eventually end when there are no greater fools left to pass the bill to. Duh. Move along.

What the critics who fecklessly trot out the Ponzi trope do not realize is that they make a lot of dumb assumptions. The biggest of which is that the market won't find any value in an unstoppable distributed system driven by the hardest digital asset the world has ever seen. A system that works to facilitate the transfer of the data we claim as digital gold. A system that anyone can join, validate, and contribute to.

To think that Bitcoin as a system acts in the same fashion as a Bernie Madoff run Ponzi scheme is asinine. It simply does not compute. Bern was consuming his clients' wealth without providing any utility at all. Bitcoin enables individuals across the world to protect their wealth and distribute it how they see fit. As our friend Hasu points out, Bitcoin is a network good that becomes more useful as its network grows. If more people are willing to receive and hold bitcoin, more potential economic activity is enabled. Making it more likely that the system develops into a closed loop that is able to retain value over time. Or as Hasu says in a much more eloquent way, Bitcoin will have way more use-value in its late adoption phase.

Go forth! Share this rag with any of the lazy people in your life who like to fling this weak excuse of a critique at Bitcoin.

I know they're still out there because our dear friend Angelus Merula serendipitously hopped into my menchies as I was writing this issue to warn us that Bitcoin is, in fact, a Pyramid scheme.  
Final thought...

Rib rub options. So many rib rub options.
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