Robust And Resilient
A few posts ago, I laid down a timeline of significant events in the history of the Bitcoin movement. All of those events are positive developments that give the reader an impression of steady forward progress. However, it has been no bed of roses for the world’s first decentralized currency system. To highlight this fact, I decided to superimpose four of the events (in blue) that could have signaled the death of Bitcoin – but didn’t.
The Silk Road disaster, the China crackdown, the Mt. Gox implosion, or the dire SEC warning each in their own right could have caused the value of Bitcoin to go back to its initial value of zero and stay there – but it didn’t. Thus far, Bitcoin has shown remarkable robustness and resiliency. Perhaps it’s even antifragile – gaining strength with each attempt to kill it.
As long as enough people believe that Bitcoin has value, then it will have value. As cell phones become more and more affordable to the poor and third world countries continue to act fiscally irresponsible with their fiat currencies, Bitcoin’s volatility will decrease and its utility as a fast, low fee, direct, mechanism of economic exchange will increase.
Bitcoin was never designed out of the box to “fit in” with the established ways of dealing with money through centralized institutions that can collapse or go bankrupt via greed/corruption. Perhaps it never will fit in, but Bitcoin can exist side-by-side with the established big wigs; acting as a deterrent to incompetent governments (Zimbabwe, Greece, Cyprus?) and serving as an escape valve to those affected by that incompetence.