"Bitcoin isn't meant to offer direct utility; rather, its role as money is to facilitate the acquisition of tangible utility.
"Bitcoin isn't meant to offer direct utility; rather, its role as money is to facilitate the acquisition of tangible utility.
Unlike assets that carry inherent physical utility—which tend to be hoarded, such as houses, land, and precious metals—money without physical use is free to function strictly as a medium, allowing one to postpone consumption until
purchasing real goods or services. Fiat currencies, lacking intrinsic utility, can be produced endlessly.
This enables those with access to printing power, from governments to wealthy elites capable of leveraging banks to generate more fiat, to secure physical utility essentially cost-free.
In contrast, Bitcoin's value lies in its inability to be conjured from nothing. Exchanges for Bitcoin require offering something of real value, ensuring that any acquisition process is grounded in actual worth.
Bitcoin thus stands in competition with fiat, offering a form of money that must be earned rather than simply produced out of thin air.
Both Bitcoin and fiat can be used to purchase utility, but Bitcoin's fixed creation process creates a system where value is preserved through genuine exchange. #crypto #economics"