Bitcoin Unveiled: A Rational Exploration for Skeptical Minds

Abstract

From its inception in 2008 as an idea, Bitcoin has evolved into a functional system by 2009 and found its initial real-world usage in 2010, priced at less than $0.01 per coin. Over time, it has transformed into a globally recognized currency, with each coin valued at over $8,000 and the total market value exceeding $150 billion as of May 2020. Despite its impressive performance as one of the most lucrative investments in the last decade, Bitcoin remains a subject of controversy. Its nature as either a novel form of currency, a speculative bubble, or a combination of both is still debated. While conventional investment frameworks are well-established for assets like stocks, bonds, and real estate, Bitcoin's unique status as a monetary asset presents challenges in evaluation due to its rarity and infrequent appearance. This research paper introduces a straightforward and easy-to-understand framework to assess Bitcoin as a novel monetary asset.