1. Bitcoin reduces administrative bloat, cheaply transfers large sums of wealth, and can potentially act as a secure store of wealth.
2. Bitcoin’s contribution to civilization is expected to be so significant that gold and treasury bonds should gradually become obsolete, as bitcoin’s adoption rate increases.
3. Charlie Munger expressed his opinion that Bitcoin’s success is “disgusting and contrary to the interests of civilization”.
Bitcoin has become an increasingly popular and important financial tool, with its value and usage growing exponentially in recent years. This digital currency was created to allow for the transfer of large sums of wealth across the globe in a secure and cost-efficient manner. Moreover, the decentralized nature of Bitcoin means that it is a safe and reliable store of value.
The development of Bitcoin has caused a significant shift in the way that wealth is handled and stored, reducing bloat and eliminating the need for paperwork and audits. Additionally, Bitcoin can potentially act as a treasury bond-like instrument, offering higher yield returns than traditional treasury bonds. This is because the real return on bonds is always lower than the nominal expectation, due to inflation.
As Bitcoin has become more popular, its market capitalization has grown and its volatility has decreased, leading it to increasingly function as a secure store of wealth or even as a savings account. The colossal amount of computing power that already powers Bitcoin, as well as the manner in which this computing power is distributed across several jurisdictions, make it virtually incorruptible.
In light of Bitcoin’s growing popularity and potential to revolutionize the way wealth is handled and stored, there are some who disapprove of the development of Bitcoin. Charlie Munger, a life-long thinker, philosopher and author, expressed his opinion that Bitcoin’s success is “disgusting and contrary to the interests of civilization”. However, contrary to Munger’s opinion, Bitcoin’s potential contribution to civilization is expected to be immense, and its adoption rate is expected to continue growing. As Bitcoin’s popularity increases, its usage is expected to surpass that of gold and treasury bonds, making them obsolete.
In conclusion, Bitcoin is a revolutionary financial tool that is revolutionizing the way wealth is handled and stored. Its potential for contribution to civilization is immense, and its growing popularity and usage suggest that it will soon become a necessary part of the financial world. Despite some negative opinions such as those of Charlie Munger, Bitcoin is here to stay and will continue to be an important part of the financial system.