Bitcoin price does not matter to many people in the Bitcoin world.
Whether they’re just posturing or whether they really mean it, they’re overlooking a major factor that keeps the Bitcoin network secure and healthy — the price of bitcoin.
Lyn Aden described why the price of bitcoin is so important in this post.
Money is an important network good.
The more liquid the economy is, the greater it becomes. Liquidity, when it becomes large enough, feeds the stability of the system and makes it usable. The more liquid it is, the better.
It is similar to why we are here on this platform whether or not we like the recent owner.…
— Lyn Alden (@LynAldenContact) October 24, 2023
She emphasized the following:
- Bitcoin becomes less volatile, and is more useful as money the more liquid it becomes.
- The price is an important market signal. Five years of constant prices would be a bad signal for the bitcoin market.
- The price of bitcoin, a finite currency designed to counter fiat, should rise as the amount of liquidity in the system increases (i.e. as fiat money is issued or as debts are created).
Please include the following arguments to support Lyn’s position:
- Bitcoin mining is a major contributor to the security of the Bitcoin Network. Bitcoin’s price must continue to increase as the block subsidy diminishes every 4 years.
- Bitcoin’s price is a factor that adds credibility to bitcoin: as bitcoin’s market capitalization approaches the value of gold the investors are more likely to view it as similar.
- The price increase of Bitcoin encourages users to run nodes to protect the network and defend it against detractors. Jeff Booth said, “After all, it’s only a matter of time before the network is destroyed.”We Are Bitcoin“, and our success is dependent on it.
You should be proud if, this week, bitcoin reached a record-breaking price.
You can also be content with having more purchasing power if, at the time of bitcoin’s new price highs you were not thinking about these points.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: bitcoinmagazine.com
