1/ Bitcoin is not backed by a commodity, nor is it issued by any government. Its code is easy to copy, as is its blockchain. Why then should Bitcoin have any value at all?
2/ Over the next week, I will publish a four part series providing an economic framework for answering the above question. I will argue that Bitcoin is a nascent monetary good at an early stage in its monetization.
3/ I will also make the financial case that Bitcoin is tremendously undervalued today based on its potential as a future global reserve currency.
4/ In part 1, I will describe the genesis of Bitcoin, outline the origins of money and explain the benefits to the world of converging on a single monetary standard.
5/ In part 2, I will cover the attributes that make a good store of value and how Bitcoin compares to other monetary goods, such as gold and fiat currencies, across these attributes.
6/ In part 3, I will cover the evolution of money, how a monetary good transitions from a store of value to a medium of exchange and where Bitcoin is in its evolution to a fully fledged global money.
7/ In part 4, I will tackle some of the major arguments against Bitcoin and why they are flawed when viewed from a monetary framework. I will also consider some of the genuine risks that face Bitcoin on its path toward full monetization.
Part 2 is now out:
