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GM - Arsen here. ☕

Welcome back to Bitcoin Therapy - the Ferrari of Bitcoin content. Fast, exciting, and gets you the girls.

First, happy and relaxing Sunday to 3,018 patients reading today. 👋 

I’m hanging out in Palermo, Italy, with the rest of the Relai gang (I’m the one on the floor). The wine in Sicily is just 🤌

Because I’m traveling, this email will be slightly different - shorter but still packed with value.

Also, I’ve listed Bitcoin Therapy on Apollo. You get 2,000 sats if you leave me a review here.

Estimated read time: 2 minutes and 25 seconds

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WHY BITCOIN IS NOT CRYPTO - THE ULTIMATE EXPLAINER

Imagine this:

1. You’re having coffee with a bitcoin-curious friend

2. You successfully convince them why Bitcoin is superior money

3. You give them some articles to read as homework

4. You meet them next week for a coffee

Me: “So, did you buy Bitcoin like you said you would?”

Them: “Bitcoin? Nah, son. That’s old tech; I’m all in ‘Dachshund-coin’, ‘Bitcoin YOLO,’ and World ‘Coin.’

Aaaand…now they’re an ex-friend.

This happens ALL THE TIME.

It’s hard to prevent your friends and family from falling for the “Bitcoin, but better” marketing narrative pushed by “web3” people.

That’s why I’m writing this ultimate explainer: Why Bitcoin is NOT crypto.

Here are 3 things that will turn your sh*tcoiner friend into a proper bitcoiner:

1/ Bitcoin’s immaculate conception = true digital scarcity

Today, there are 2+ million cryptocurrencies. By the end of the decade, there will be 10+ million.

Doesn’t sound scarce, does it?

Only the original creation of digital scarcity is scarce.

I repeat: Only the original creation of digital scarcity is scarce.

Bitcoin is irreproducible. It exists because of a particular sequence of events that cannot be reproduced.

Bitcoin’s scarcity is a one-time discovery.

*bzzzt* - We interrupt your program with a message from our sponsor

30% OF BITCOIN IS LOST FOREVER

Scary number, I know. Let me ask you a few questions:

1. Do you think your Bitcoin setup is secure enough?

2. Do your loved ones know how to access your Bitcoin if something happens to you?

3. Are you using Bitcoin without being surveilled by third parties?

If you struggle with these questions, you’re not alone. I’ve been there.

I’ve made lots of mistakes when I first discovered Bitcoin in 2017. I’ve sent BTC to the wrong addresses, overpaid in transaction fees, and sometimes didn’t back up my wallet (RIP sats).

This is because there was no one to guide me. But that’s not the case today. Meet The Bitcoin Way - your Bitcoin IT team

These Chads offer personalized, secure, and comprehensive solutions for every aspect of your Bitcoin journey (they’ve thought of everything):

1. Wallet & node setup

2. Individuals & Businesses

3. Inheritance planning

4. Privacy-focused collaborative custody

5. Fast and reliable tech support

They’re rated 4.9/5.0 on Apollo. So yeah, they’re legit.

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*bzzzt* Thank you for your attention. Back to the newsletter!

2/ Bitcoin is THE Schelling point

Schelling point = a natural solution that people use when they cannot communicate

Imagine this: I tell 100 of you to meet me in Paris at 1 pm (without further instruction or communication).

Which place would you pick? And which place would you think the other 99 people would pick?

The answer: The Eiffel Tower

Now, some of you would end up at the Louvre or Notre Dame or behind some random trash can, true. But the MAJORITY would wind up at the feet of the Eiffel Tower.

Still confused?

Let’s make it even simpler: which square do you think 100 random people would choose and think others will choose?

I think you get the point.

Here are a few examples of Schelling points:

1. Travellers use english to communicate in the absence of a common language

2. Internet service providers use TCP/IP to transfer data between computers

3. People use Bitcoin as THE asset to store their wealth in

No one even compares Bitcoin’s features against Ethereum, Cardano, or XRP when deciding to store value long-term.

They always select converge on the Schelling point for storing value - Bitcoin.

3/ Bitcoin 🤝 Network Effect

• Why do you use the internet instead of intra nets?

• Why do you use Telephone instead of fax?

• Wy do we use Twitter instead of plaform ZYX?

Short answer: Network Effect

We use these technologies because everyone else uses them.

Here’s how networks grow: The number of users increases —> value of network increases —> the number of users increases —>value of network increases…you get the point.

And how do you quantify/measure the network effect?

Well, meet Metcalfe’s law: the value of a network is proportional to the square of the number of users (n^2)

So, if a network has 10 users, the value of the network is 10^2 = 100.

Now, we’ve talked about the internet, telephone, and Twitter. Those are in the small boy network league.

The ultimate network effect is 🥁*drumrolls*🥁… money.

It’s simple:

1. You choose the correct money (bitcoin) = you gain wealth

2. You choose the wrong money (fiat, XRP, pokemon cards) = you lose wealth

There are no benefits to having multiple networks for money. Most of the world’s monetary value and users accrue to one network - Bitcoin

Fin.

Big thanks to Jesse Myers (CroesusBTC) for inspiring me to write this email. Give him a follow here. 

QUICK NEWS⚡

• You can now earn Bitcoin for reviewing technical transcripts.

• Samson Mow, the CEO of JAN3, met the president of Colombia. Adoption, hello.

• Scaramucci: Wall Street will move billions into Bitcoin ETF

THIS WEEK IN A MEME 📅

FROM THE ARCHIVE 📁

Saylor in 2013: Bitcoin will fail

Saylor in 2023: owns $7 billion in BTC

PATIENT REVIEW 🧠

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That’s it for this one. Big thanks to our sponsor Bitcoin Way who allow us to write Bitcoin Therapy. You support us by supporting them ❤️

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See you next Sunday,

Arsen from Bitcoin Therapy

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