Here is my, current and open to change, view of Bitcoin.
Many people, including myself, have longed for an alternative method of wealth transfer and storage. One without onerous compliance, supervision and control (for my "Safety and Security" apparently). Crypto gives me that.
Its VERY new. For me, my desire outweighs the risks involved (which are high) in holding crypto. But I fully accept that 90% of people are not ready - and I have no desire to push them. Also If all my wealth was in Crypto then I would be as foolish as having all my wealth in USD.
A new bank opens its doors with capital. Money that it has to hand. The government then permits this bank to lend a multiple of that capital. That is the government permits (encourages!) the bank to lend money it does not have. This is "Double Spending" where the same money is used many times to buy many things.
Crypto does not allow double spending, the use of "money" to buy things simultaneously.
Imagine our bank had borrowed its initial capital from....another bank! That is as imaginary as imaginary money can get. The additional money for its outgoing loans is made up in loan notes from a central bank who has got the money from....er....a printing press. Except now they dont print it they press a button. There is no proof of work, no democratic consensus, and this money printing, oh sorry "Quantitative Easing" decision is made by people much cleverer than me so if they tried to explain it I would not understand so I should just trust them.
In our world that would be like selling the same speedmaster to 10 people. And as long as they all lived in the same house and they didn't want to wear it on the same day....all will be well.
Bitcoin, and other crypto currencies has its value in the trust that it cannot be double spent. In fact Bitcoin is not anonymous and could if need be be traced - in fact you can go onto the blockchain and see the very first block
(it is here)
It is also open for all to see - in that if I send you bitcoin you can see it coming to your wallet on the blockchain - and not someone else's wallet. This is all recorded in the distributed ledger that is the bitcoin blockchain on millions of computers around the world - who have to agree a consensus in order to write the next block of transactions.
While the video above are amusing, try looking at it from the other way around. I think it would be more accurate to think of those holes as US dollars (or any Fiat) as they are created out of thin air.
People say there is nothing behind Bitcoin. Well it is true there is no Gold convertibility (Or hard asset convertibility) , but there has not been convertibility for some time for USD (not since 1971). So the USD is backed only by the trust of those who use it. (Even the US dollar tells you right on the paper its printed on, not to trust the US dollar - "In GOD we trust" it says - ok thats a snide joke but ....is it?)
What is behind bitcoin? Trust. Trust that when I send you bitcoin, it is from the finite supply and it is not being used 10 times elsewhere simultaneously. There is trust that no central party has the power to block, change, or remove the transaction or bitcoin itself.
Now I am not an Economist. It may well be that this ability to spend the same money multiple times is a good thing. It may be what is keeping America, and other central bank controlled Sovereign states all churning along economically.
So it may be that the collapse of Fiat currencies will have us in the dark ages again.
I just dont know.
But I do know Fiat is collapsing, no mater how many funny videos or what ridicule is heaped on crypto currencies or what nonsenses are spread about bitcoin being a criminals currency.
Criminals currency? try walking into a bank with $50,000 and see how they treat you and what happens next. Then you will see what "Criminals Currency" looks like.
/rant over
