I am attending a big dinner with friends this weekend, 6 ppl. Two of us are bitcoiners and the remainder are skeptical, at best. To make it worse most of the other 4 people work in TradFi. Invariably, the topic of Bitcoin will come up. Here is how I want to present it:
"So, why does Bitcoin have value?"
Well... let's start with some things you're familiar with:
Q1. Why does your home have value?
A1: Your home has value because it has utility. You can live it, raise your family in it. You can rent it out and generate income. Your home was built through the cumulative work of raw materials, people and time.
Q2: Why does AAPL/NVDA/GOOG have value?
A2: These companies produce/provide products and services that people get value from. You have a phone, which can be used to call/text people. You can use it to a get useful information. You can use email and drive from Google. Nvidia makes chips that run powerful systems like AI LLM's and so forth. All this took time and energy to produce.
Q3: Why does gold have value?
A3: Gold is a precious element. It must be extracted from the earth using equipment, people and time. Gold can be used as jewelry and in the electronics industry. Gold is durable and almost impossible to destroy.
Q4: Why does the US Dollar have value?
Answer -> you tell me.