1. Bitcoin reduces administrative bloat and allows for cheap transfers of large sums of wealth across the globe.
2. It can work as a secure store of wealth or as a savings account due to its ever-increasing market capitalization and decreasing volatility.
3. Bitcoin’s adoption rate is expected to become so great that it will replace gold and treasury bonds in the future.
Bitcoin is quickly becoming an increasingly popular form of currency, and its potential to revolutionize the way in which wealth is transferred, stored, and used is becoming more and more apparent. In recent years, its many advantages have become increasingly evident, and its potential to revolutionize the world of finance is being increasingly recognized.
To start off, bitcoin reduces administrative bloat. Unlike traditional methods of transferring wealth which require a lot of paperwork and verification, bitcoin makes it possible to transfer wealth without any of these extra steps. Through its public ledger, it is possible to verify and audit wealth transfers with minimal effort. This significantly reduces the amount of time and money spent on such processes.
In addition, bitcoin is also much cheaper to transfer large sums of wealth across the globe. Not only does it have a much lower transaction fee than traditional methods, it also allows for instantaneous transfers which would not be possible with traditional methods. This makes it much more convenient for those who need to transfer large amounts of money quickly and efficiently.
Furthermore, bitcoin can potentially act as a treasury bond, but with higher yields. Traditional treasury bonds usually have a lower real return than the nominal expectation, due to inflation. With bitcoin, however, this is not the case. This is because of its large market capitalization and ever-decreasing volatility, which make it possible for it to act as a secure store of wealth or even a savings account.
Finally, the contribution of bitcoin to civilization is expected to be so significant that gold and treasury bonds should eventually become obsolete. This is because its adoption rate is becoming increasingly high and its potential to revolutionize the world of finance is becoming increasingly evident.
All in all, it is clear that bitcoin is revolutionizing the way wealth is transferred, stored, and used. Its potential to significantly improve the way we transfer money and store wealth is becoming more and more evident, and its benefits are becoming increasingly clear. Charlie Munger may have some valid concerns about its use in criminal activities, but it is undeniable that its potential to contribute to civilization is great.