One of the most common critiques of Bitcoin is that it — or its intrinsic value in particular — is too hard to understand. They make comments like “just use PayPal” or “why should we use a currency created by computers.”
But according to a new essay by Parker Lewis, a noted writer in the space and head of business development at Unchained Capital, the macroeconomic environment has reached a point where Bitcoin’s purpose has become “common sense” — much unlike it may have been years ago.
Bitcoin is “common sense”
As this outlet has heavily detailed, the past few months have seen central banks and governments around the world go into overdrive to combat both the health and economic effects of the outbreak of COVID-19.
It’s a trend that is proving Bitcoin’s purpose, Lewis wrote in a May 1 essay titled “Bitcoin is Common Sense.”
He explained that with the U.S. Federal Reserve, Bank of Japan, and European Central Bank have increased the supply of their “respective currencies by $3.3 trillion in aggregate” in the past two months, the chance at unforeseen monetary effects has increased.
Now contrast record-level central bank money printing with the fact that Bitcoin’s halving is a mere 10 days away and you have two very “divergent” systems: a centralized form of money that is being debased without agreement amongst the holders, and a decentralized form of money that is scarce and transparent.
Gradually, Then Suddenly (#14): Bitcoin is Common Sense
21 million bitcoin ever vs. $2,500,000,000,000 dollars created by one central bank in just two months. Money still doesn’t grow on trees and there ain’t no thing as a free lunch.https://t.co/MCAu7N0bbM
— Parker Lewis (@parkeralewis) May 1, 2020
The juxtaposition led Lewis to the powerful conclusion that the bull case for Bitcoin, the reason to buy the cryptocurrency, should now be almost common sense for the general public.
Calling the asset is “inevitable,” he wrote:
“When governments and central banks can no longer create money out of thin air, it will become crystal clear that backdoor monetary inflation was always just a ruse to allocate resources for which no one was actually willing to be taxed. In common sense, there is no question. There may be debate but bitcoin is the inevitable path forward.”
The end is nigh for all forms of money but Bitcoin… apparently
“Bitcoin is Common Sense” is Lewis’ latest in a series of 14 essays — which are part of the “Gradually, Then Suddenly” series published to Unchained Capital — outlining what he believes to be extremely strong fundamental trends for the cryptocurrency.
Previously, Lewis identified that Bitcoin seriously has a chance to obsolete all other forms of money to become the world’s primary means of value transfer. As reported by CryptoSlate, the writer identified the following factors to back this sentiment:
- Bitcoin is the most transferrable of all currencies, for it can ”be irrevocably transferred over a communication channel without the need for any trusted third-party as an intermediary.”
- BTC, unlike many other forms of money and digital payment systems, is “global and it is accessible on a permissionless basis”
- Bitcoin’s halvings ensure that the cryptocurrency has a strict level of scarcity, unlike fiat currencies that can be printed by the whims of central banks.
Because individuals naturally “converge on a singular monetary medium,” the intrinsically superior Bitcoin has a solid chance at becoming that singular medium, the Unchained Capital executive concluded.
