web3/concepts/bitcoin.md

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# Bitcoin
Bitcoin is the first [crypto asset](cryptoasset.md) investment developed in 2008 by Satoshi Nakamoto.
## Properties
Bitcoin is not a [currency](currency.md).
Bitcoin is a [speculative](speculation.md) investment.
Bitcoin is a [bearer instrument](bearer-instrument.md).
Bitcoin is [deflationary](deflationary.md).
Bitcoin has no [fundamental value](fundamental-value.md).
Bitcoin has no [use value](use-value.md).
Bitcoin has no [income-cashflows](income-cashflows.md).
Bitcoin has a [present-value](present-value.md) of zero.
Bitcoin has a [terminal-value](terminal-value.md) of zero.
Bitcoin is a [greater fool theory](greater-fool-theory.md) asset.
Bitcoin is a [non-productive](productive-asset.md) investment.
Bitcoin has a negative [expected return](expected-return.md).
Bitcoin is a [security](security.md).
Bitcoin is [artificial scarce](artificial-scarcity.md).
Bitcoin is allegedly a [sound money](sound-money.md) in the [Austrian economics](austrian-economics.md) school of thought.
Bitcoin is based on [consensus algorithm](consensus-algorithm.md) known as Proof of Work [mining](mining.md).
## References
1. Hanley, Brian P. 2018. The False Premises and Promises of Bitcoin. ArXiv:1312.2048 [Cs, q-Fin], July. http://arxiv.org/abs/1312.2048.
1. Taleb, Nassim Nicholas. 2021. Bitcoin, Currencies, and Fragility. ArXiv:2106.14204 [Physics, q-Fin], July. http://arxiv.org/abs/2106.14204.
1. Krugman, Paul. 2021. Technobabble, Libertarian Derp and Bitcoin. The New York Times 21. https://www.nytimes.com/2021/05/20/opinion/cryptocurrency-bitcoin.html.
1. Bellinger, Matthew. 2018. The Rhetoric of Bitcoin: Money, Politics, and the Construction of Blockchain Communities. ResearchWorks Archive. PhD Thesis. https://digital.lib.washington.edu/researchworks/handle/1773/43342.
1. Bindseil, Ulrich, Patrick Papsdorf, and Jürgen Schaaf. 2022. The Encrypted Threat: Bitcoins Social Cost and Regulatory Responses. 7 January 2022. https://www.suerf.org/docx/f_88b3febc5798a734026c82c1012408f5_38771_suerf.pdf.
1. Varoufakis, Yanis. 2021. What Is Money, Really? And Why Bitcoin Is Not the Answer (Even If Blockchain Is Brilliant & Potentially Helpful in Democratising Money). Yanis Varoufakis (blog). 2 August 2021. https://www.yanisvaroufakis.eu/2021/08/02/what-is-money/.