--- title: "Meaning & Key Takeaway of: Bitcoin is valuable as a currency because…" description: "\"Bitcoin is valuable as a currency because of the economic efficiencies the bitcoin network is already creating as transactions flow over it. As with th..." image: "https://sms4smile.com/quotes/i/e6d/fred-ehrsam-12993_bitcoin_bitcoin-is-valuable-as-a-currency-becaus_2654812.jpg" --- # Bitcoin is valuable as a currency because of the economic… ![“Bitcoin is valuable as a currency because of the economic efficiencies the bitcoin network is already creating as transactions flow over it. As with the Internet, more applications will flourish which will make the bitcoin network, and thus bitcoin as a currency, valuable.” quote by Fred Ehrsam](https://sms4smile.com/quotes/i/e6d/fred-ehrsam-12993_bitcoin_bitcoin-is-valuable-as-a-currency-becaus_2654812.jpg) [Download](https://sms4smile.com/quotes/i/e6d/fred-ehrsam-12993_bitcoin_bitcoin-is-valuable-as-a-currency-becaus_2654812.jpg) [Open image](https://sms4smile.com/quotes/i/e6d/fred-ehrsam-12993_bitcoin_bitcoin-is-valuable-as-a-currency-becaus_2654812.jpg) > “Bitcoin is valuable as a currency because of the economic efficiencies the bitcoin network is already creating as transactions flow over it. As with the Internet, more applications will flourish which will make the bitcoin network, and thus bitcoin as a currency, valuable.” [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Bitcoin’s value stems from network efficiency and network effects, similar to the Internet’s growth. **In simple terms:** Bitcoin valuable due to efficient network. Key Takeaway Support and use efficient networks. Themes economics network effects cryptocurrency Mood analytical optimistic Type economic technological When to use this quote - online payments - decentralized apps - investment decisions Key Concepts blockchain digital finance Questions to Reflect On - How will regulation impact Bitcoin? - What other networks could benefit from similar effects? A Different Perspective Network security risks remain. ★ ★ ★ ★ ★ No ratings yet [Bitcoin](https://sms4smile.com/quotes/about/bitcoin/) [Bitcoin Currency](https://sms4smile.com/quotes/about/bitcoin-currency-1569256/) [Bitcoin Valuable](https://sms4smile.com/quotes/about/bitcoin-valuable-2378396/) [Currency](https://sms4smile.com/quotes/about/currency/) [Currency Valuable](https://sms4smile.com/quotes/about/currency-valuable-2378397/) [Flow](https://sms4smile.com/quotes/about/flow/) [Internet](https://sms4smile.com/quotes/about/internet/) [More](https://sms4smile.com/quotes/about/more/) [Network Bitcoin](https://sms4smile.com/quotes/about/network-bitcoin-997568/) [Valuable Currency](https://sms4smile.com/quotes/about/valuable-currency-1629436/) [Will](https://sms4smile.com/quotes/about/will/) ## Related quotes > [Bitcoin is a currency, bitcoin is a network, bitcoin is a technology and you can't separate these things. A consensus network that bases its…](https://sms4smile.com/quotes/andreas-antonopoulos/bitcoin-is-a-currency-bitcoin-is-a-network-bitcoin-is-a-technology/) [Andreas Antonopoulos](https://sms4smile.com/quotes/author/andreas-antonopoulos/) > [The ledger, the distributed database - it's called a Blockchain - is held in the cloud by all the parties involved. It can't be…](https://sms4smile.com/quotes/naval-ravikant/the-ledger-the-distributed-database-it-s-called-a-blockchain-is-held/) [Naval Ravikant](https://sms4smile.com/quotes/author/naval-ravikant/) > [You just can't bifurcate bitcoin currency from the technology. Bitcoin will always need a monetary base.](https://sms4smile.com/quotes/barry-silbert/you-just-can-t-bifurcate-bitcoin-currency-from-the-technology-bitcoin/) [Barry Silbert](https://sms4smile.com/quotes/author/barry-silbert/) > [It's completely reasonable, even if some Bitcoin currency purists wouldn't like it, to have credit and debit card payments denominated in Bitcoin rather than…](https://sms4smile.com/quotes/nick-szabo/it-s-completely-reasonable-even-if-some-bitcoin-currency-purists/) [Nick Szabo](https://sms4smile.com/quotes/author/nick-szabo/) > [Bitcoin is not a currency for a government; it is a global currency for the people.](https://sms4smile.com/quotes/wences-casares/bitcoin-is-not-a-currency-for-a-government-it-is-a-global-currency/) [Wences Casares](https://sms4smile.com/quotes/author/wences-casares/) > [This Bitcoin currency is a voluntary decentralized currency, anonymous. It can't be shut down by anyone; there are no central servers.](https://sms4smile.com/quotes/jeff-berwick/this-bitcoin-currency-is-a-voluntary-decentralized-currency-anonymous/) [Jeff Berwick](https://sms4smile.com/quotes/author/jeff-berwick/) > [Well, bitcoin is a currency. Bitcoin has no underlying rate of return. You know, bonds have an interest coupon. Stocks have earnings and dividends.…](https://sms4smile.com/quotes/john-c-bogle/well-bitcoin-is-a-currency-bitcoin-has-no-underlying-rate-of-return/) [John C. Bogle](https://sms4smile.com/quotes/author/john-c-bogle/) > [I think long-term, Bitcoin is a currency of the Internet. So, even if humans don't use it, routers will use it. Web browsers will…](https://sms4smile.com/quotes/naval-ravikant/i-think-long-term-bitcoin-is-a-currency-of-the-internet-so-even-if/) [Naval Ravikant](https://sms4smile.com/quotes/author/naval-ravikant/) > [Bitcoin is not currency; it's the internet of money!](https://sms4smile.com/quotes/andreas-antonopoulos/bitcoin-is-not-currency-it-s-the-internet-of-money/) [Andreas Antonopoulos](https://sms4smile.com/quotes/author/andreas-antonopoulos/) > [“Erik argued that it was the very virtual nature of Bitcoin that made it so valuable. Unlike gold, it could be easily and quickly…](https://sms4smile.com/quotes/nathaniel-popper/erik-argued-that-it-was-the-very-virtual-nature-of-bitcoin-that-made/) [Nathaniel Popper](https://sms4smile.com/quotes/author/nathaniel-popper/) > [“One, bitcoin is not a stand-alone currency but a unit of accounting attached to an innovative payment network. Two, this network and therefore bitcoin…](https://sms4smile.com/quotes/jeffrey-tucker/one-bitcoin-is-not-a-stand-alone-currency-but-a-unit-of-accounting/) [Jeffrey Tucker](https://sms4smile.com/quotes/author/jeffrey-tucker/) > [“Bitcoin consists of: A decentralized peer-to-peer network (the bitcoin protocol) A public transaction ledger (the blockchain) A set of rules for independent transaction validation…](https://sms4smile.com/quotes/andreas-m-antonopoulos/bitcoin-consists-of-a-decentralized-peer-to-peer-network-the-bitcoin/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [“the bitcoin network. Bitcoin users communicate with each other using the bitcoin protocol primarily via the internet, although other transport networks can also be…](https://sms4smile.com/quotes/andreas-m-antonopoulos/the-bitcoin-network-bitcoin-users-communicate-with-each-other-using/) [Andreas M. Antonopoulos](https://sms4smile.com/quotes/author/andreas-m-antonopoulos/) > [Your most valuable currency is what comes most naturally to you. Cash in!](https://sms4smile.com/quotes/danielle-laporte/your-most-valuable-currency-is-what-comes-most-naturally-to-you-cash/) [Danielle LaPorte](https://sms4smile.com/quotes/author/danielle-laporte/) > [“Beauty in its best form is kindness, the most valuable currency in the world.”](https://sms4smile.com/quotes/rebecca-mcnutt/beauty-in-its-best-form-is-kindness-the-most-valuable-currency-in-the/) [Rebecca McNutt](https://sms4smile.com/quotes/author/rebecca-mcnutt/) ## More by Fred Ehrsam > [Sales conducted on-chain through smart contracts couldn't really be done before Ethereum, which is why they are a newer concept. I think this style…](https://sms4smile.com/quotes/fred-ehrsam/sales-conducted-on-chain-through-smart-contracts-couldn-t-really-be/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [OpenAI is doing important work by releasing tools which promote AI to be developed in the open. Compute power is largely produced by NVIDIA…](https://sms4smile.com/quotes/fred-ehrsam/openai-is-doing-important-work-by-releasing-tools-which-promote-ai-to/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [AIs are only as good as the data they are trained on.](https://sms4smile.com/quotes/fred-ehrsam/ais-are-only-as-good-as-the-data-they-are-trained-on/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [I'd guess blockchains will be the full-blown backbone of virtual worlds - the system for currency, assets, identity, even governance - before doing the…](https://sms4smile.com/quotes/fred-ehrsam/i-d-guess-blockchains-will-be-the-full-blown-backbone-of-virtual/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Make no mistake - Ethereum would never have existed without Bitcoin as a forerunner. That said, I think Ethereum is ahead of Bitcoin in…](https://sms4smile.com/quotes/fred-ehrsam/make-no-mistake-ethereum-would-never-have-existed-without-bitcoin-as/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Bitcoin has a core technological innovation: The ability to publicly verify ownership, instantly transfer that ownership, and do so without the need for a…](https://sms4smile.com/quotes/fred-ehrsam/bitcoin-has-a-core-technological-innovation-the-ability-to-publicly/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [When you drill down, blockchains are really a shared version of reality everyone agrees on. So whether it's a fully immersive VR experience, augmented…](https://sms4smile.com/quotes/fred-ehrsam/when-you-drill-down-blockchains-are-really-a-shared-version-of/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [At GDAX, we want to see new protocols and their tokens flourish.](https://sms4smile.com/quotes/fred-ehrsam/at-gdax-we-want-to-see-new-protocols-and-their-tokens-flourish/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Just like mutations to DNA in biological organisms allow for evolution through natural selection, forking lets us run multiple experiments in parallel where the…](https://sms4smile.com/quotes/fred-ehrsam/just-like-mutations-to-dna-in-biological-organisms-allow-for/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [The fundamentals of the token model are valuable and powerful. They allow communities to govern themselves, their economics, and rally a community in powerful…](https://sms4smile.com/quotes/fred-ehrsam/the-fundamentals-of-the-token-model-are-valuable-and-powerful-they/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Redistributing tokens is a balancing act. In most cases, forks probably want to keep ownership for users constant so users have at least the…](https://sms4smile.com/quotes/fred-ehrsam/redistributing-tokens-is-a-balancing-act-in-most-cases-forks-probably/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Bitcoin is inherently international, and one of its great promises is it enables cross-border payments in a more efficient way.](https://sms4smile.com/quotes/fred-ehrsam/bitcoin-is-inherently-international-and-one-of-its-great-promises-is/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [When the actual Bitcoin network launched in 2009, no one knew about it, and many of those who did thought it would surely fail.…](https://sms4smile.com/quotes/fred-ehrsam/when-the-actual-bitcoin-network-launched-in-2009-no-one-knew-about-it/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Scaling is multidimensional. Different methods address different things.](https://sms4smile.com/quotes/fred-ehrsam/scaling-is-multidimensional-different-methods-address-different-things/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) > [Private funding was one of the first methods used when MIT funded Bitcoin core developers Gavin Andresen, Wladimir van der Laan, and Cory Fields…](https://sms4smile.com/quotes/fred-ehrsam/private-funding-was-one-of-the-first-methods-used-when-mit-funded/) [Fred Ehrsam](https://sms4smile.com/quotes/author/fred-ehrsam/) [Explore all 52 Fred Ehrsam quotes ](https://sms4smile.com/quotes/author/fred-ehrsam/) ## More Bitcoin quotes > [The bitcoin network is not a payments network and it is not a scaling network.](https://sms4smile.com/quotes/sam-bankman-fried/the-bitcoin-network-is-not-a-payments-network-and-it-is-not-a-scaling/) [Sam Bankman-Fried](https://sms4smile.com/quotes/author/sam-bankman-fried/) > [I had been exposed to bitcoin early. I thought the consumer application of it felt, to me, further away. I thought there would be…](https://sms4smile.com/quotes/brad-garlinghouse/i-had-been-exposed-to-bitcoin-early-i-thought-the-consumer/) [Brad Garlinghouse](https://sms4smile.com/quotes/author/brad-garlinghouse/) > [In 2008, Bitcoin was mysteriously introduced to the world in an obscure, technical paper written under the pseudonym Satoshi Nakamoto. By late 2013, the…](https://sms4smile.com/quotes/steve-hanke/in-2008-bitcoin-was-mysteriously-introduced-to-the-world-in-an/) [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) > [We need to come up with use cases for this technology that drive clear benefits for individuals and institutions - these are our customers.…](https://sms4smile.com/quotes/abigail-johnson/we-need-to-come-up-with-use-cases-for-this-technology-that-drive/) [Abigail Johnson](https://sms4smile.com/quotes/author/abigail-johnson/) > [Sir Richard Branson started out as a small business owner and now owns a conglomerate that will give you a ride to the moon.…](https://sms4smile.com/quotes/perianne-boring/sir-richard-branson-started-out-as-a-small-business-owner-and-now/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Exchanging bitcoin on behalf of ransomware victims should not be construed as criminal activity by the exchanger, not as a matter of law nor…](https://sms4smile.com/quotes/perianne-boring/exchanging-bitcoin-on-behalf-of-ransomware-victims-should-not-be/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Until part of your paycheck is regularly paid in Bitcoin, I'm not sure how it would really go mainstream. I can imagine places in…](https://sms4smile.com/quotes/gavin-andresen/until-part-of-your-paycheck-is-regularly-paid-in-bitcoin-i-m-not-sure/) [Gavin Andresen](https://sms4smile.com/quotes/author/gavin-andresen/) > [Calling bitcoin volatile - it's a non-statement. Unregulated assets with unclear regulatory landscapes are always going to be volatile. That's what unregulated assets do.](https://sms4smile.com/quotes/tyler-winklevoss/calling-bitcoin-volatile-it-s-a-non-statement-unregulated-assets-with/) [Tyler Winklevoss](https://sms4smile.com/quotes/author/tyler-winklevoss/) > [We see bitcoin as potentially the greatest social network of all.](https://sms4smile.com/quotes/tyler-winklevoss/we-see-bitcoin-as-potentially-the-greatest-social-network-of-all/) [Tyler Winklevoss](https://sms4smile.com/quotes/author/tyler-winklevoss/) > [As the platform and protocol become more ingrained in society, get built into products and services, and basically become more of the mesh of…](https://sms4smile.com/quotes/barry-silbert/as-the-platform-and-protocol-become-more-ingrained-in-society-get/) [Barry Silbert](https://sms4smile.com/quotes/author/barry-silbert/) > [Bitcoin is not “unregulated”. It is regulated by algorithm instead of being regulated by government bureaucracies. Un-corrupted.](https://sms4smile.com/quotes/andreas-antonopoulos/bitcoin-is-not-unregulated-it-is-regulated-by-algorithm-instead-of/) [Andreas Antonopoulos](https://sms4smile.com/quotes/author/andreas-antonopoulos/) > [The rudest possible gift is a gift card. It means you think the person is stupid and has no interests. The only good gift…](https://sms4smile.com/quotes/john-waters/the-rudest-possible-gift-is-a-gift-card-it-means-you-think-the-person/) [John Waters](https://sms4smile.com/quotes/author/john-waters/) > [If the U.S. government tries to restrict or clamp down, that just means there will be many more bitcoin businesses in Hong Kong and…](https://sms4smile.com/quotes/roger-ver/if-the-u-s-government-tries-to-restrict-or-clamp-down-that-just-means/) [Roger Ver](https://sms4smile.com/quotes/author/roger-ver/) > [What bitcoin does better than the current financial system is it's a better stored value globally. There are a lot of countries that really…](https://sms4smile.com/quotes/adam-draper/what-bitcoin-does-better-than-the-current-financial-system-is-it-s-a/) [Adam Draper](https://sms4smile.com/quotes/author/adam-draper/) > [You really want some natural way for people to get Bitcoins, as part of their paycheck or some other activity so they can turn…](https://sms4smile.com/quotes/gavin-andresen/you-really-want-some-natural-way-for-people-to-get-bitcoins-as-part/) [Gavin Andresen](https://sms4smile.com/quotes/author/gavin-andresen/) [Browse all 364 Bitcoin quotes ](https://sms4smile.com/quotes/about/bitcoin/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "Bitcoin is valuable as a currency because of the economic efficiencies the bitcoin network is already creating as transactions flow over it. 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