Explaining Bitcoin: Don’t Fall for the Metaphors!

• Many metaphors and analogies have been used to describe Bitcoin, but using a bad framework can lead to errors in reasoning.
• The common analogy of “Bitcoin as stored time” is an overly loose and imprecise metaphor.
• While metaphors can be useful for describing Bitcoin, it is important to remember that they should not be confused with scientific truth.

Bitcoin has become a hot topic in the past few years, with its value rising exponentially and its potential for disrupting traditional financial systems. But with such a revolutionary technology, it can be difficult to properly explain its properties and benefits to people who aren’t familiar with it. As a result, Bitcoiners often resort to metaphors and analogies to explain Bitcoin in simpler terms. While these metaphors can be useful for describing Bitcoin, it is important to remember that they should not be confused with scientific truth.

For instance, the popular notion that bitcoin can “store our time” is an overly loose and imprecise metaphor. It typically comes up when Bitcoiners are talking about the injustice of fiat currency (this part is correct), but then it goes awry when the metaphor is stretched too far into suggesting that we should “store our time” in bitcoin instead of fiat currency. While the “store of value” concept can arguably apply to Bitcoin if we consider longer time frames, this metaphor should not be used as a literal explanation of how Bitcoin works.

Another popular analogy is that Bitcoin is a “digital gold”. While this can be useful for giving people a better understanding of the decentralized, scarce, and censorship-resistant nature of Bitcoin, it should not be taken too literally. Bitcoin is not a physical commodity like gold, and it does not have the same properties as gold. For example, Bitcoin is not indestructible, and it has a finite supply.

It is also important to remember that Bitcoin is not a “get rich quick” scheme. Bitcoin is an incredibly volatile asset, and its price can rise and fall drastically over short periods of time. As such, it is important to understand the risks of investing in Bitcoin before making any decisions.

Ultimately, while metaphors and analogies can be helpful for explaining Bitcoin in simple terms, it is important to remember that they should not be taken too literally. Bitcoin is a powerful technology with the potential to revolutionize the financial system, and it is important to understand it in its true form before attempting to explain it to others.