Think about the moment our Founding Fathers inked the Declaration of Independence. There was technically nothing physically supporting it. It was the collective trust in the words that built a new nation.
Similarly, faith is the key ingredient in enduring monetary systems.
Let’s chat about resilience for a second – how some things get back up even stronger after being knocked down. The Constitution of the U.S., a historical testament of 235 years, is a fantastic example of this ‘bounce back’ trait, also known as ‘antifragility’.
Now, let’s look at Bitcoin’s journey. In 2013, when China’s government prohibited its banks from dealing with Bitcoin, combined with massive hacking of a Bitcoin exchange, Bitcoin took a hit, but got back up stronger, soaring from $175 to $20,000 in mere years.
Despite repeated bans and crackdowns in China through the years and turmoil in the crypto industry, Bitcoin continues to stand strong.
Why is this important? Because there’s a belief that without real-world backing, Bitcoin’s value is elusive. The reality is, that Bitcoin’s value comes from shared faith akin to the U.S. Constitution’s backing. The Constitution guards our basic rights, and Bitcoin assures us that our money should not lose value.
Bitcoin’s code enforces this belief, making changes to the code exceedingly challenging, hence maintaining Bitcoin’s value. So, even if someone tries to overthrow this system, our shared faith in Bitcoin’s principles wouldn’t allow it, as demonstrated during previous ‘Bitcoin wars’.
So, what’s the secret sauce backing Bitcoin? It’s our shared belief in Bitcoin’s value and principles, like the Founding Fathers’ trust in the Declaration of Independence.
We, Bitcoin holders spanning various backgrounds, believe in robust, unchanging money – a belief that our hard-earned savings shouldn’t vanish due to endless cash production.
In conclusion, Bitcoin isn’t backed by an audacious promise, but by a collective faith in sound money principles, which, my friends, is the most definitive backing one can have.