Bitcoin vs. Corporate Structures: A Conceptual Comparison
Overview:
- Comparing Bitcoin to corporate structures reveals interesting similarities
- Conceptually pulling global currencies down to the level of publicly traded companies simplifies the conversation
- Examining the status of USD (United States Dollar) and BTC (Bitcoin) as companies highlights their key differences
- USD, the incumbent, is facing financial challenges and is losing its market edge
- BTC, the challenger, is steadily growing and disrupting the market
- Upcoming competition from BRICS poses a threat to USD
- BTC investors tend to hold their stock tightly, indicating confidence in its future
- Rational investors may diversify their holdings based on current events
- Bitcoin’s digitally native nature gives it an advantage over USD and potential competitors
- In the bitcoin network, every participant is an employee, investor, and business owner
- The decentralized nature of Bitcoin allows for collective teamwork and consensus
- Viewing Bitcoin through this lens provides a realistic perspective on its competition
- Investing in Bitcoin carries fewer risks compared to the fiat system
Article:
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Comparisons between the market capitalization of Bitcoin and publicly traded companies used to make me wince in frustration. Trying to contrast the world’s first successful digitally native currency to a single industry is narrow minded, let alone a single company. However, as I continuously surrender to the process of meeting people where they are on their bitcoin journey, I realized I can use this comparison to illustrate Bitcoin’s strengths in a different way. |
Conceptually Pulling Global Currencies Down to the Level of Publicly Traded Companies
Instead of trying to bring Bitcoin up to the level of global currencies, let’s bring global currencies down to the level of publicly traded companies. This approach simplifies the conversation and allows for a clearer understanding of Bitcoin’s position in the market without diving into complex monetary theory.
The Status of USD and BTC as Companies
Imagine that USD and BTC are ticker symbols representing companies. Each has its own employees, management policies, price performance history, legal obligations, and publicly traded shares. Now, let’s take a look at the current status of these “companies”.
The board of USD has a history of diluting its shares and has been issuing new shares at an alarming rate. This benefits the board while reducing pay for employees. In contrast, BTC operates as an employee-run organization with a fixed, predictable, and declining rate of share issuance. Employees are required to adopt the steady issuance policy.
USD, as the incumbent, holds a significant share of the market and exerts its dominance with force. However, it is losing its edge and burdened by growing expenses and debt. Investors holding USD stock have seen negative returns since 1971.
On the other hand, BTC is a disruptive tech company with steady growth and adoption. Its market share is small compared to USD, but it has immense upside potential. BTC has a lean management structure, zero debt, and investors holding BTC stock have experienced significant positive returns since 2013.
Competition and Market Conditions
A new startup called BRICS is making pre-launch announcements and aims to steal market share from USD. This could have a profound effect on USD, as its business model relies on being the sole provider of its service. BTC investors tend to hold their stock tightly, indicating confidence in its future. While USD has some strategies to attract new investors and slow competitor growth, its days of true market innovation are in the past.
BTC, on the other hand, continues to innovate and is on track to take more market share regardless of competition. Its fundamentally unique qualities set it apart from the competition. Additionally, BTC is digitally native, optimized for online transactions, and appeals to the growing trend of global commerce moving towards a digital format.
The Bitcoin Network: Employees, Investors, and Business Owners
In the bitcoin network, every individual who adds value to the network could be considered a BTC employee. This includes investors, miners, developers, entrepreneurs, and vendors accepting bitcoin. The network operates on a system where participants work for the collective benefit of each other. Rewards are distributed based on investor holdings.
This cohesive teamwork is possible because the bitcoin community operates on a mathematical consensus machine. Despite disagreements, the community is forced to reach a collective agreement every ten minutes. Each participant contributes to the network in a specialized way, even those who attempt to attack Bitcoin provide value by highlighting potential vulnerabilities.
Bitcoin is a collective effort, where individuals and groups rely on each other. Although compassion is not a prerequisite, striving to live with compassion for other beings can strengthen the network. The decentralized nature of Bitcoin allows for a voluntary and flexible approach to employment within the network.
Closing Thoughts: Maximizing Rationality and Morality
When it comes to deploying capital and allocating personal energy, investing in the bankrupt fiat system carries greater risks than exploring Bitcoin. Viewing Bitcoin through the lens of corporate structures allows for a realistic comparison with its competition. Rational investors may choose to diversify their holdings based on current events, while also considering the moral alignment of their investments.
Bitcoin offers a unique opportunity for investors to participate in a disruptive tech company with significant upside potential. Its digitally native nature gives it an advantage over competitors and its decentralized structure promotes collective teamwork and consensus. Investing in Bitcoin carries fewer risks compared to the fiat system, making it an attractive choice for those seeking both rationality and morality in their investments.
Hot Take:
Bitcoin’s ability to stand strong against the traditional fiat system and its potential to disrupt global commerce makes it a compelling investment opportunity. The comparisons drawn between Bitcoin and corporate structures highlight its advantages, including steady growth, limited supply, and a decentralized nature. As the world moves towards a digital future, Bitcoin’s digitally native qualities position it as a contender for the future of finance. It offers investors a chance to participate in a collective effort and potentially reap significant returns.
