<aside> 💡 In the first Block of the Bitcoin Network's Blockchain is the front page headline from The Times on January 3, 2009: “Chancellor on the brink of second bailout for banks” .
While Bitcoin was not a direct response to the Global Financial Crisis, it's ethos of financial sovereignty is an antithesis to what the GFC exposed - deep breaches of trust by financial institutions that resulted in money being devalued.
This is important to note, as the fundamental value-proposition for Bitcoin is it’s ability to disrupt and displace monetary system globally.
Included in the first block of Bitcoin, the Genesis Block, is the headline from this newspaper.
Money flowing into Bitcoin can be divided into two basic types:
This section looks at what fundamental properties make Bitcoin valuable.
There is an enormous amount of money and energy that is used each day by financial institutions, both in infrastructure and labour.
However, the Bitcoin Network does what banks spend billions on each year attempting to achieve - efficient payment finality.
Divisible & Portable
Assets like gold are difficult to divide into smaller units, and can be a logistical nightmare to transport.
However, digital-native Bitcoin is easily divisible and portable, and easily transportable.
Escrow services, payment schedules, and subscriptions, can be programmed using Bitcoin; these options will continue to grow as Bitcoin continues being developed.
The Bitcoin Network eliminates the risk and costs associated with charge-backs and fraudulent transactions.
This reduces operating costs to merchants, and ultimately reduces costs to consumers.