bitcoin

Monetary property checklist

Property	Met
Medium of exchange	✅
Unit of account	✅
Portable	✅
Durable	✅
Divisible	✅
Fungible	❌
Relative scarcity	❌

bitcoin is a surveillance-by-default asset and is not true money. It's absolute supply makes it permanently deflationary so as long as there is speculative demand. Yes, it can be used as a medium of exchange, but it's slow, expensive, and, as the surveillance apparatus grows, so too does the risk of a user being tracked and traced. People often invest in bitcoin because it's the least volatile crypto- ignoring the associated surveillance risks.

bitcoin is surveillance-by-default. Its ledger is public and can be tracked and traced. This is a huge risk for the user which, in turn, affects its ability to protect the user from the dangerous entities like the state and from criminals who track people, kidnap them, and hold them for ransom... something that's been on the rise for some time now. While there are risky privacy solutions like mixers and coinjoins, they are an additional layer of complexity the average user is just not willing to deal with.

Having the highest market cap and being the most widely recognized cryptocurrency, bitcoin is seen more as a specultive, investable asset than a currency. Looking strictly at how the asset is flowing through the financial system, it's clear bitcoin is used, by far, as a speculative asset than anything else. The exchanges are where the majority of the flow is going- FAR exceeding the amount of bitcoin flowing through its block chain network.

This means, if you're looking for a truly sound money, bitcoin is not it. Many feel is a great speculative asset if you're willing to accept the associated privacy risks.

When it comes to liquidity, bitcoin is one of the most liquid assets in the world. It's traded on many exchanges and is available on many platforms, making it easy to buy and sell.

The caveat here is that under high demand, moving bitcoin on the blockchain can be slow and extremely expensive due to the network being congested and the fees being high. This makes it difficult for the average person to move any amount of bitcoin quickly and efficiently under those conditions.

As with all crypto, bitcoin is a relatively new asset and is still in its infancy despite being around for nearly 20 years now. It's still a young asset and is still subject to the whims of the market. No one knows if bitcoin is still going to be the number one crypto asset 100 hundred years from now, unlike gold.

The networks itself is robust and hasn't suffered any major issues so it's a good bet that, at the very least, should the network survive, it may still be around for the next twenty years.

bitcoin can be easy to self-custody if you're willing to take the time to learn how to do it. There are many resources available online to help you learn how to self-custody your crypto. Digital wallets are a dime-a-dozen and easy to set up.

The downside is that you're going to be downloading digital wallets until you find the one that works for you. There are many to choose from and each has its own set of features and limitations. Choice is good, but for newcomers this can be a bit overwhelming.

bitcoin is very retail accessible... if you're willing to give up your privacy in the process. KYC (Know Your Customer) laws and requirements are common and often required by exchanges and other services. This means you're giving up your privacy to access the asset.

You'll be turning over your personal information drivers license, passport, and/or other form of ID's to start. This information is then used to track you and your activities and often given to law enforcement and other government entities for investigation and possible prosecution.

The great thing about bitcoin is that it's a truly decentralized asset. There is no central authority that can take it away from you or control it. You are the only one who can control your bitcoin. The only risk is your ability to not make any mistakes for the rest of your life in associating your identity with your bitcoin.

Contrary to popular belief, the counterparty risk of bitcoin exists at the exchange level. If you're using a centralized exchange, you're trusting that exchange to hold your bitcoin safely and securely. If the exchange is hacked, your bitcoin is gone. If the exchange goes out of business, your bitcoin is gone. If the exchange is seized by the government, your bitcoin is gone.

So as long as you're using a decentralized exchange and you're not trusting a third party with your bitcoin, you're not at risk of counterparty risk. This is why it's so important to self-custody your assets.

For all intents and purposes, bitcoin is censorship resistant. It's a decentralized asset and is not subject to the whims of any central authority. This means you are the only one who can control your bitcoin and you are the only one who can move it. No one can take it away from you or control it so as long as you remember to keep your private keys safe and secure.