After 238 years, the U.S. Treasury has punched out its last penny at the U.S. Mint in Philadelphia. Bill Maher joked that, without pennies, how will Spotify pay musicians? Most of us remember that Benjamin Franklin said, “A penny saved is a penny earned.” But if Franklin were alive today, he might say, “A one-hundred-millionth of a Bitcoin saved is a one-hundred-millionth of a Bitcoin earned.” After all, Bitcoin can be purchased in increments as small as one-hundred-millionth of a Bitcoin.
By now, has anyone not heard of the cryptocurrency Bitcoin? Bitcoin is often called “digital gold,” yet both Bitcoin and gold have nearly no utility. Try paying for groceries with either one. Bitcoin was allegedly invented by someone named Satoshi Nakamoto, who remains a mystery. Nakamoto reportedly said about Bitcoin: “If you don’t believe me or don’t get it, I don’t have time to try to convince you, sorry.”
As an investment, Bitcoin is highly volatile, with more ups and downs than the scariest rollercoaster at Magic Mountain. The full faith and credit of the U.S. government backs the dollar. What is Bitcoin backed by? Perhaps scarcity. Unlike government-issued money, which can theoretically be printed without limit, Bitcoin is capped at 21 million coins. That ceiling is designed to preserve value. Bitcoin isn’t the only cryptocurrency. There are too many to list here, and some have proven to be nothing but scams; however, Bitcoin is the original and remains the most valuable.
As we say goodbye to the penny, the old saying, “A penny for your thoughts,” may give way to a new one: “A one-hundred-millionth of a Bitcoin for your thoughts.”
Philip Wasserman
Stevenson Ranch
