Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from

Crypto Valley Live (ID: cryptovalley)

Crypto Valley Live (ID: cryptovalley)

Bitcoin, created 12 years ago by the mysterious Satoshi Nakamoto, is still a mystery to the general public. Due to the constant vilification from the heads of the current system, most people think that Bitcoin is a hazard.

Governments, central bankers, economists and many journalists have been saying that Bitcoin is too volatile and that it is primarily used for criminal activities.

Some have even gone so far as to say it's a scam.

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The value of money is completely subjective

These Bitcoin naysayers will tell you that it has no intrinsic value. In fact, seeing it cost $60,000 is pretty dangerous in their eyes. Listen to them, Bitcoin is a giant bubble that will end very badly.

The first is that they understand that Bitcoin has no intrinsic value. But neither do dollars or other fiat currencies have any intrinsic value.

Here I return to the subjective notion of value. In economics, this subjective notion of value assumes that for an object to have value, it must be useful and scarce. Furthermore, this theory recognizes that an object may satisfy one person's needs but not another.

Fiat currencies have value because they are useful to hundreds of millions of people today. Their value is guaranteed by the government. Take the U.S. dollar as an example. Some would argue that its value is guaranteed by the strength of the U.S. military.

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Unlike the U.S. Dollar, Bitcoin is Extremely Scarce

As far as scarcity is concerned, you can easily agree that these fiat currencies are not really scarce. In fact, look at the astonishing growth in the U.S. M2 money stock last year:

This constant debasement of the fiat money supply in circulation has had a huge impact on the wealth of most of the planet's inhabitants. All the money produced is still in the hands of a very small number of people, as can be seen from the sharp decline in the velocity of the M2 money stock over the same period:

Currency no longer circulates in the economy and remains in the hands of billionaires, whose cumulative wealth in the United States increased by more than $850 billion in 2020.

This phenomenon is not new, as the economist Richard Cantillon described it in the 18th century. His research on this issue led to the theory of the Cantillon effect, which we are currently experiencing in full.

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The problem with the current system is that it's concentrated in the hands of untrustworthy people

The problem with the current system is that too much power is placed in the hands of a very small number of people. I am referring to central bankers who have the power to create money out of thin air as they deem necessary. History has shown us that they cannot be trusted to exercise this immense power responsibly.

Bitcoin is the answer to this centralization problem. Bitcoin is a decentralized system, P2P currency. With Bitcoin, the power of money is back in the hands of those who shouldn’t lose it: the citizens of the world.

Bitcoin is extremely scarce and has been used by more than 100 million people. Therefore, according to the subjective concept of value I introduced earlier, Bitcoin is valuable.

Bitcoin proves to us day in and day out that the future belongs to decentralization.

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The dangers of centralization are manifested in social networking platforms

Facebook or Twitter can arbitrarily decide that you are never allowed to have an account on their platform again.

With these social networking platforms in a monopoly position, you suddenly lose access to thousands or even millions of people who should have the power to decide whether or not your content is of interest to them.

Centralization gives too much power to individuals who think they are above the people.

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Google and Apple are also abusing the power of their app stores

The app store example is also convincing. Google and Apple dominate with the Play Store and App Store.

They are free to make unfair decisions that jeopardize the businesses of thousands of people. How many mobile app development startups have gone out of business because of a blanket ban decision by Google or Apple?

Too much!

After creating a viral effect around my story, I was able to get my developer account back, but I'm now living in the shadow of a sword of Damocles. With Google's next arbitrary decision, I may lose my Google developer account forever.

In fact, the apps I've been developing on the platform for over a decade don't count. In the end, I stopped publishing any apps because I was afraid my account would be permanently closed.

The danger of centralization is here again.

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All centralized platforms are a danger to user freedom

The lucky ones might even get an apology from Google. Still, it is impossible to live in such fear all the time.

final thoughts

All these centralized platforms send you the same message as the current monetary and financial system. You must obey our unfair and arbitrary rules and decisions, whether you like it or not.

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final thoughts

Bitcoin has been incredibly successful because it has put millions of people back in control of their money. And by doing this, you gain freedom over your life. And that's what people simply crave. Therein lies the great value of Bitcoin: the power it gives back to its users.