The 21st century has brought many exciting technological advancements. Though many are just becoming acquainted with it, the most important of these advancements is bitcoin. Bitcoin is the combination of several 20th century innovations that have resulted in what may prove to be the most important invention since the printing press. Yes, that is a bold statement, but the implications and possibilities of bitcoin is and the magnitude of the possibilities that come with it, it will become clear that bitcoin will transform the world as we know it.
So what is? Bitcoin is money that is digital, decentralized and scarce (Thank God For Bitcoin, page 95).
The digital part part of this definition is familiar to us as the majority of our spending is done in a digital format. Whether using debit or credit cards, paying bills or buying goods and services online, viewing our accounts through our bank’s mobile app, we engage digital money everyday.
It is the decentralized part that begins to feel unfamiliar. Simply put, national currencies (fiat money) are controlled by central banks. For example, the US dollar is controlled by United State’s central bank, the Federal Reserve. One of the roles of the Federal Reserve is to control and manipulate the dollar in an effort to guide the economy. It does this primarily by controlling the money supply and setting interest rates on credit. Controlling the money supply means having the ability to simply remove or create money at will. This immense power has been on full display over the past decade.
Understanding that the control of money is centralized through central banks and that they can print it at will helps us see the importance of scarcity. Scarcity is a fundamental concept in economics, which is ironic. For a thing to be scarce, its supply must necessarily be limited. When a thing is both scarce and desirable, its value will necessary increase over time. Nearly unlimited money printing has made the US dollar, and many other currencies the opposite of scarce.
Bitcoin fixes this. The digital, decentralized and scarce nature of Bitcoin makes it the ideal asset to solve many of the problems our economy faces. Censorship, hyperinflation, regulations, and evolving ideologies are just a few of the challenges we will face as we seek to take the gospel to the nations in the 21st century. Mining4Missions exists to explore and participate in the development of solutions to these challenges.