Thread by @znfrey

Good thread by the excellent @ElBitcoinCoach on why #Bitcoin is special vs. other #cryptocurrencies

As you may have noticed, there are other projects I'm bullish on. @helium #ThePeoplesNetwork is a prime example

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https://twitter.com/ElBitcoinCoach/status/1453502406025699331

But that's because projects like @helium are finding ways to apply #blockchain usefully to real-word problems. $HNT has value because network bandwidth has value.

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The price of $HNT may change because of speculation in the #cryptocurrecy market, but I expect it will never go to zero because the value of the token is backed by the value of the Helium network.

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$HNT is therefore similar to the $USD back in the days of the gold standard, when American Dollars were backed by precious metal. 1 $USD = 1/35 oz of gold.

For @helium, instead of gold, you exchange $HNT for Data Credits to power your Helium network devices.

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But #Bitcoin isn't like that. Bitcoin's value is backed by the trustworthiness of the Bitcoin network itself.

1 $BTC = 1 $BTC, forever.

That doesn't sound like an amazing property, but it is.

Why?

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Because of inflation.

1 $USD = 1 $USD, right?

Not so fast!

The value of the dollar changes over time. Today's dollars are worth less than yesterday's, and tomorrow's will be worth even less, assuming inflation continues.

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Let's say you had $1 in 1950. You would need $11.38 today to have the same purchasing power.

So, 1 $USD (1950) = 11.38 $USD (2021)

Source: in2013dollars.com/us/inflation/1…

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Put another way, today's dollars are worth about one-twelfth what they were 71 years ago.

The reasons for this are complicated but summed up by "money printing"

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The future value of $USD can only do one of three things:

1. Continue to shrink
2. Remain stable
3. Change course and grow

Which do you want to bet on?

@jack is making his bet:

https://twitter.com/jack/status/1451733913961783299

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One of the primary functions of money is to be a "store of value"

I don't know about you, but I'd prefer that the money I store my value in keeps its value

instead of shrinking away like a piece of dry ice left in the sun.

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Enter #Bitcoin

https://twitter.com/saylor/status/1451902902122029057

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Bitcoin is valuable because it digital cash that is

* Secure
* Distributed
* Immune to inflation

and these are all valuable properties.

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#Bitcoin isn't the only cryptocurrency.

In fact, there are an absurd number of #cryptcurrency projects.

Per cryptimi.com/guides/how-man… the count is 7,800.

With more coming every day, we'll be over 10,000 before you know it.

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Out of those thousands of #cryptocurrencies, why #Bitcoin ?

Short answer: field-tested and proven, with no single point of failure.

@ElBitcoinCoach explains in more detail here:

https://twitter.com/ElBitcoinCoach/status/1453502406025699331

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Thanks for reading this far!

I've started a Substack where I write more about #cryptocurrency and #blockchain, with special attention to #IoT projects and their real-world impact. Please subscribe!

zachfrey.substack.com

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