This Valentine's Day, we're reflecting on why we love bitcoin, and think you should, too.
Shall I compare thee to a bitcoin node?
Not many people associate bitcoin with love. Here at Lolli, we do.
We love bitcoin for many reasons, all of which fuel our mission to make bitcoin more accessible to all through shopping rewards with Lolli.
Read on for some of the reasons why we love bitcoin and tweet us @TryLolli with why you love bitcoin for a chance to be featured on our Twitter today.
Bitcoin Is a Truly Global Currency
Bitcoin can be used by anyone in the world because it is completely borderless. It is neither the property, nor under the control of any given entity or jurisdiction. Bitcoin makes money free and accessible to all.
Bitcoin is also fully digital. It can be sent anywhere in the world instantly and used by anyone who has access to the Internet, which has transformative applications for unbanked populations. As bitcoin allows anyone to 'be their own bank', it gives power back to the people – particularly those who have been disempowered by traditional systems.
Additionally, bitcoin is a low-cost, efficient way to complete international payments, allowing people around the world to more seamlessly transact. In this way, bitcoin creates a global monetary system that keeps pace with our highly connected modern world.
Bitcoin Holds Its Value and Is Anti-Inflationary
Money can be understood in terms of its ‘hardness’. Hard money refers to types of monetary instruments that are difficult to produce, thereby making them scarce and resistant to devaluation by inflation. Bitcoin is hard money there will only ever be 21 million bitcoins in existence.
Hard money can maintain a more stable value compared to softer monies like fiat currencies because its supply cannot be manipulated at the will of the issuing authority.
In 2020, we saw in real time how fiat currencies work in opposition to bitcoin. We stood watch as our government called press conferences to print billions of dollars on any given night.
Bitcoin is the purest form of hard money ever created, because it has no supply elasticity. While demand for bitcoin will go up over time as it is increasingly adopted as a global currency and store of value, its supply will stay the same. This will drive bitcoin's price up (another reason why we love bitcoin).
Bitcoin Is Completely Trustless
When a system is 'trustless', it requires no reliance on a third party and is able to function free of intermediaries. Instead of relying on a central authority to mediate the issues of double spending or fraud, bitcoin uses the proof of work blockchain which provides monetary incentives for a network of miners that maintain the security and ongoing function of the network.
Moreover, all can view the history of the bitcoin network and its ongoing transactions on a public ledger, creating a fully transparent record.
The term trustless is a slight misnomer. While 'trustless' might suggest that blockchains don't require any trust, this isn't quite the case. Trust is distributed instead of eliminated, so the need for it is reduced.
However, the proof of work system effectively ensures that no one individual or group can alter or disrupt the flow of bitcoin transactions. In order to degrade the integrity of the network, an entity would need control of 51% of the nodes on the network – a practically impossible feat.
Bitcoin Has Vast, Novel Applications
Beyond its use as money, bitcoin has a plethora of current and potential applications that make use of its revolutionary infrastructure as an immutable digital ledger. The recent launch of the Ordinals protocol has made waves by highlighting the ability to mint NFTs on bitcoin. In so doing, the Ordinals project has created a new way to codify ownership rights on the bitcoin network, which can be applied to any kind of digital file, from music to images, videos, and more.
Bitcoin can also host decentralized financial services, currently through the use of an interconnected blockchain or Layer 2 solution. By tapping into the qualities of the bitcoin network that make it the most secure, un-censorable network in the world, individuals and countries can benefit from using bitcoin to facilitate financial services, particularly for those who without access to traditional financial services.
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