Bitcoin has been likened to the platypus… which sounds like an odd comparison.
The platypus is a strange duck-billed mammal with webbed feet and a furry body like a beaver. It has characteristics of birds, mammals, and reptiles. Females lay eggs but also nurse their young with milk. Males produce a potent venom.
When Europeans discovered the platypus in Australia in 1798, they wrote letters to folks at home to describe this bizarre new animal. People thought the platypus was a joke or a hoax—because it didn’t fit into the classification of animals at that time.
But it was a real animal.
People just didn’t understand it because it was a new thing that didn’t fit into the established paradigms.
Bitcoin is much the same. It doesn’t fit into the framework of traditional financial analysis metrics.
There is no P/E (price-to-earnings) ratio because Bitcoin has no earnings.
There is no P/B (price-to-book) ratio because Bitcoin has no book value.
Bitcoin has no CEO, no marketing department, and no employees.
Bitcoin is an entirely new asset people are adopting as money because of its superior monetary properties, namely its resistance to inflation.
The monetization of a new global money is genuinely unlike anything anyone alive has ever seen before. There is nothing else comparable.
Like the platypus, Bitcoin is an entirely new animal. That’s why Bitcoin confuses many people, including prominent investment professionals.
It’s not uncommon for it to take years for someone to really get Bitcoin. It requires an understanding of economic incentives, technology, cryptography, financial markets, and other fields.
But, by far, the most important way to understand Bitcoin is first to understand money, which anyone can do.
Bitcoin has been likened to the platypus… which sounds like an odd comparison. The platypus is a strange duck-billed mammal with webbed feet and a furry body like a beaver. It has characteristics of birds, mammals, and reptiles. Females lay eggs but also nurse their young with milk. Males produce a potent venom. When Europeans discovered the platypus in Australia in 1798, they wrote letters to folks at home to describe this bizarre new animal. People thought the platypus was a joke or a hoax—because it didn’t fit into the classification of animals at that time. But it was a … Continue reading →
Source: 3 Things Most People Don’t Know About Gold, Bitcoin, and Money – LewRockwell
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