According to Bloomberg, bitcoin’s 9 million percent price rise makes it the best performing asset of the last decade. But what if I told you that even in 2021, Bitcoin is still one of the most undervalued assets there is?
If you are one of those people who has thought of putting money into bitcoin, but just could not pull the trigger, then you are not alone.
The crypto community today is flooded with people who, unfortunately, do not understand the fundamentals lying behind these digital assets. And because bitcoin has amassed a significant following of these “weak hands,” institutions and principal investors may become more cautious when it comes to putting money into bitcoin.
When they see that people do not agree on basic questions like “What gives Bitcoin its value?” and “How does Bitcoin derive its worth?,” it creates uncertainty, and they could become reluctant to go all in.
The question of the value of bitcoin is very general and multifaceted. There are two ways to explain this. One is the traditional way, which describes bitcoin’s value in terms of the power that goes into mining.
But here I want to touch the other side of the coin. The side that is not discussed as often. And that has to do with our current financial system.
Elon Musk has already said that cryptocurrencies will be the media of exchange on Mars. But even if we stick to Earth, Bitcoin is a disruptor. It has all the ingredients that are required to let it go on and become the future “currency” of the world.
While our financial system is failing us, Bitcoin is providing solutions to all the problems we are facing in our monetary system. In essence, Bitcoin’s value really comes from the worthlessness of our current financial system..
The Evolution Of The Monetary System
After the barter system, historically, gold has always been used as a medium of exchange. But because gold is not portable, as time passed, we…