Bitcoin’s True Value: Why a World Without It Is Riskier Than You Think

Over half the global population faces authoritarian rule or crippling inflation. In a world where financial freedom is often dictated by circumstance, Aaron Bailey argues that Bitcoin offers a unique lifeline for those born into economic and political instability.

Bitcoin's existence is often debated through the lens of investment potential or its volatile nature. However, Aaron Bailey presents a more profound justification for Bitcoin's utility rooted in a thought experiment that transcends individual circumstances: imagine waking up as any of the 7 billion people on Earth who live in developing or third world nations, which 85% of the world, not knowing your socio-economic status or geopolitical environment. Would you want Bitcoin to exist in such a world?

Bitcoin as a Tool for Freedom

Bailey’s argument centers on Bitcoin’s fundamental value as a tool for financial autonomy. Unlike traditional banking, which requires permissions, government oversight, and intermediaries, Bitcoin operates on a decentralized network, enabling peer-to-peer value transfers. This independence is critical for individuals under authoritarian regimes or those facing unstable local currencies.

Over 50% of the global population lives under authoritarian rule, where democratic institutions are weak or non-existent. For these individuals, the hope of changing their local economic or political landscape is minimal. By enabling people to bypass centralized control, Bitcoin becomes a tool for freedom beyond just financial transactions. It represents a way to save and transfer value securely without the fear of government seizure or intervention.

A Hedge Against Hyperinflation

At least 25% of the world suffers from double-digit inflation, with some regions experiencing hyperinflation that can erode savings and economic security almost overnight. Countries like Venezuela have seen their national currency become virtually worthless due to hyperinflation. In such environments, access to stable foreign currencies like the U.S. dollar is restricted, and digital platforms such as PayPal or Cash App are only available to some.

Bailey points out that a simple $50 smartphone can be enough to access Bitcoin and maintain financial agency. This technology allows individuals to save in an asset not tied to their local currency's volatility, safeguarding their economic future even in the face of national financial ruin.

Would You Choose Bitcoin?

Bailey’s thought experiment poses an essential question: if there was a 1 in 2 chance of living under an authoritarian regime or a 1 in 4 chance of experiencing severe inflation, would you want Bitcoin to exist? The answer, for many, becomes apparent when considering these harsh realities. A world where one's financial stability is at the mercy of government control or economic mismanagement is precarious. Bitcoin provides a decentralized safety net, allowing people to retain financial autonomy even under dire conditions.

The Broader Implications

While critics often point to Bitcoin’s speculative nature or the environmental impact of mining, Bailey’s case goes beyond these arguments. Bitcoin is not merely an investment vehicle; it is a lifeline for those trapped in systems that strip them of financial independence. It serves as an insurance policy, protecting individuals from the socio-political and economic conditions that can devastate lives through no fault of their own.

Open-source data supports Bailey’s argument. Studies show that Bitcoin adoption spikes in countries with failing economies or political turmoil, underscoring its real-world utility as a tool for survival rather than just an investment.

Conclusion

Bitcoin's true value, as outlined by Aaron Bailey, is not found in its price swings or speculative gains but in its potential as a global equalizer. It allows individuals worldwide to assert control over their finances, regardless of their government, economy, or birthplace. For those facing authoritarian control or hyperinflation, Bitcoin isn't just an asset; it's a beacon of hope and resilience in an uncertain world.