New Post: The Promise of Bitcoin
Bitcoin is a technological marvel, with transaction times many, many times faster then the next best thing Humans, at the time of Bitcoins creation. Plus transaction costs were fractions of a Bitcoin, which cost only pennies at it's inception, so it's transaction cost was very reasonable. Bitcoin was the first cryptocurrency blockchaian, so it's block size and block time, as in time to process a group of transactions had no peer to compare to, ony traditional finance, and Bitcoin was much faster.
But with the passage of time, inflation of the dollar has eroded it's value, and the deflationary nature of Bitcoin by comparison has increased it's value, so a token which once traded for pennies, then dollars, then tens of dollars, now trades for thousands of dollars. Inflation is an incredible force of economics. Just ask any Boomer who bought their first house for 4000 dollars, whose children now need 200,000 dollars to buy the same house.
So the good thing about Bitcoin is that it kept it's promise to be a hedge against inflation, and while the value of the dollar was eroded the dollar value of Bitcoin has climbed.
But it was not due to any change in Bitcoin, but due to the continual eroding of the dollars buying power.
One only has to look at the Boomer House Price example above in the USA and then look at the reason that the government of Zimbawae had to start printing one Billion Dollar Notes to understand that inflation is an incredibly powerful and universal force of economics. The degree and speed of inflation varies, as the Boomer example shows what happened over 20 years in the worlds largest economy and once largest economic engine. But Zimbawae shows the speed and extremes that inflation can produce, where you literally neeed billion dallar notes to buy bread, that's billion with a B.
Inflation is like gravity or entropy, it can't be wished out of existence, and apparently it can't be stopped, as fiat currency, after fiat currency has died a terrible death by the sharp blade of inflation thorugh out history. But we ignore it globally, seeing the people telling stories of the horrors of inflation as alarmists, while the people singing the siren song of everything is okay, keep the status quo, sing you to sleep, as our economy like a boat, floats nearer and nearer to the edge of the waterfall, where it will one day plunge over the edge to it's a certain destriuction.