Oct 8, 2021

Letter #49: Bitcoin Appreciates, Fiat Depreciates

Read now to learn how Bitcoin's tendency to appreciate makes it superior to every fiat currency in existence.

2
Upgrade to listen

Appears in this episode

Joshua Guest
Your one-stop shop for Bitcoin education!
Episode details
2 comments

Dear Readers,

Most new Bitcoin users probably can’t spend too much time in the space without finding out that just a few dollars’ worth of Bitcoin purchased in 2009 would be worth millions of dollars today. It’s often said that hindsight is 20/20, but in this case it can seem almost painful to think about.

Bitcoin’s performance is certainly evidence of one thing however: Bitcoin appreciates or, in other words, grows in value over time. This should be startling to you when considered in the context of modern money. After all, money isn’t supposed to increase in value. Governments don’t even want their money to maintain its value, let alone increase in value. They are actively trying to debase the value of money, during the good times and the bad. But Bitcoin marches to the beat of a different drummer.

Bitcoin’s fiat-based exchange rates have certainly been volatile, and this isn’t meant to be an exposé on Bitcoin’s “number go up” behavior. However, Bitcoin’s fundamentals have led to interesting behavior on the part of many market participants: hodling, or the act of holding onto one’s Bitcoin for long periods, even years at a time.

This post is for paid subscribers