The delusions behind a bitcoin strategic reserve

[Celerity]

17. I have seen this faulty 'tulip versus bitcoin' attempted comparison since I joined DU. It fails at multiple base levels.

1. Bitcoin is a fungible asset, tulips are not. (fungibility is the property of a good or a commodity whose individual units are essentially interchangeable)

2. Bitcoin is durable, tulips are not. Tulips are a plant with a limited lifespan, especially for the flowers once they bloom. Bitcoin, once mined, goes onto the permanent de-centralised blockchain public ledger. To transfer bitcoin, the blockchain verifies the sender's public and private keys, and the recipient is given a new private key. The transaction is recorded on the blockchain in a file and becomes part of an automatic verification process.

3. Tulips require a complex physical supply chain/delivery process, one that can take a long time and can be impacted by physical conditions. Bitcoin can be transferred to someone anywhere on the planet within seconds or minutes, via any device that can access the stored bitcoin and the blockchain on the internet.