Understanding the Basics of Bitcoin

It's just money the way money is supposed to be. You save it and it doesn't loose value. IN fact you save it and things get cheaper, if you value the items you buy in bitcoin. You think that bitcoin is getting more expensive, but you're thinking backwards. Bitcoin is not getting more expensive, dollars are getting worth less. It takes more dollars to buy the same things that you bought in the past.

What is commonly called "number-go-up" or what our minds see as bitcoin going up in price is the manifestation of our mental conditioning to see everything priced it dollars. If you can break that mindset, you can see that there is a choice. You can choose to stay in the mindset of everything priced in dollars, that dollars are the fundamental and sole measure of value, or you can choose to see things priced in bitcoin.

Since pricing (also known as valuation) is simply the practice of comparing one thing against another to determine which one you want more, you can actually consider anything as 'money'. If I have a bicycle and want a cell phone, my bicycle could be my money to "buy" a cell phone - if I can find someone who wants to make the trade. If I want to make a lot of trades for a lot of different things, I would be much better off if I had something that most everyone wants. This thing that most everyone wants is called a "medium of exchange". It just so happens that at this point in history, most people have agreed on dollars as something to use to make trades. Dollars are only one accepted medium of exchange. For this blog, we will use the word money as another way of saying medium of exchange.

We have been conditioned to accept "fiat money" or currency as the only viable and acceptable form of money. But, you don't have to stay in that mindset.