The Bitcoin Boom – The Ultimate Storage of Wealth

Wednesday 05 May 2021, 10:58 AM AEST - 1 week ago

We have witnessed many booms throughout history, but nothing has quite prepared us for the Crypto Boom.

The dot-com boom, which occurred in the late 1990s saw a major shift in technological needs, along with massive growth and adoption globally. It was due to this technological adoption on such a large scale, that we have seen many advances in technology, Blockchain being one.

With the birth of cryptocurrencies, Bitcoin to be precise, we are now on the verge of the changing of the entire monetary system and the way in which we perceive wealth.

From Gold to Bitcoin

Good money needs to have a few basic functions to work effectively; it has to be a medium of exchange, unit of account and most importantly a good store of value.

Gold has been considered the best form of money for the best part of the previous 6000 years of monetary history, due to it continually being chosen by the free market as best fulfilling these three functions of a good money.

Lots of different objects and things have been tried as money throughout history, such as seashells, glass beads and the hundreds of paper fiat currencies decreed upon its people by control driven emperors, rulers or governments.

Every time a form of money was used that had an inflatable supply, greed inevitably got the best of people and the temptation to increase the money supply to simply enrich oneself, was ultimately a temptation too strong to resist.

Every time the supply of one of these forms of money was increased and followed by the subsequent ravaging inflation and hyperinflation of that currency; the people would lose faith in the currency, as their life savings and purchasing power are significantly devalued.

This ultimately led people to search to store their value in a form of money that physically couldnt have its supply increased and function as a more effective store of value.

For 6000 years man kind has chosen Gold to be the best store of value because of its rarity and scarcity on earth, ensuring that its supply only ever rises by 1-2% per year through mining, making it a great store of value.

The game changing invention of the Internet in the 20th century, followed by the rise of Blockchain technology has enabled a new invention.

That invention is what we call Bitcoin, a curre ...

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