The value of Bitcoin

bitTo use a basic standard when considering laws makes sense in the following ways. People are naturally good and most people are doing mostly right in their lives. Some people are demented or just get too greedy or angry. If you can admit the fact that most people are susceptible to some mistakes it seems only fair to not impose you mistakes on someone else and their mistakes on you. In essence every action should be voluntary. Passing a law per se is the opposite of voluntarism though and we do need laws.  The basic tenants of such laws is the need to focus on assuring parties agree to do that which they have agreed and also to protect parties from encroachment in it’s many forms.

 As we see the decline of the legal system as the standard bearer of justice and itself encroaching on voluntarism we will see an expansion of the black market and also the slow down of production.

Gold became the international reserve currency one transaction at a time over thousands of years. The dollar became currency of the united states through our original agreement with congress and gained international reserve status one transaction at a time. Now bitcoin is becoming the international currency of choice one transaction at a time. As capital controls increase bitcoins will find great favor in their liquidity which surpasses that of the dollar. It also maintains the buying power of physical gold by defeating government controls which eventually destroy currencies.

Gersham’s law says that people will continue to trade dollar away while hoarding bitcoins. But ultimately the big opportunity in bitcoin for an investor is future capital controls pushing people into the currency unwillingly. Then either a national currency collapsing on its own or bitcoin gaining such wide acceptance as to collapse the currency due to the currencies low acceptance and devaluation.

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