Oil Analogy To Bitcoin In The 1860s

Oil Analogy To Bitcoin In The 1860s

Oil Analogy To Bitcoin In The 1860s


Tuur Demeester, the founder of Adamant Capital, likened Bitcoin to oil in the 1860s and said the advantages should be explained to skeptical buyers.


As is known, Bitcoinans block chain is a decentralized account book, whose security is based on miners defending their systems and their network. Miners reward Bitcoin for their work, which motivates the miners and keeps the network safe.


However, the fact that the block subsidy for miners was an expiration date gave rise to concerns that the security of Bitcoin might be threatened after this date.

Tamco Blummer, the Bitcoin Developer who evaluated the situation, said that the direct use of the Bitcoin block chain could be, ridiculously expensive in in the future.

The founder of Adamant Capital, Tuur Demeester, made a comparison of where Bitcoin could go in the future.


Demeester said that Bitcoin’s current situation is similar to crude oil due to the low natural resources in nature. In the 1860s, the advantages of oil were to be explained to skeptical buyers, as they were very cautious about the use of users as in Bitcoin, he said.

The popularity of oil exploded in two years as exports rose from 40 barrels to 25 million barrels. Oil prices, such as Bitcoin, were also highly variable in the early days of the market. For example, prices in London ranged from 5 to 30 cents per gallon.


Oil Analogy To Bitcoin In The 1860s

Oil Analogy To Bitcoin In The 1860s



Demeester outlined the entire scenario, stating that there are many ÔÇśpossible parallels ana between Oil and Bitcoin. It took years for both sides to be identified as potential economic elements. Both were faced with early infrastructure problems, and direct growth was clearly slow.

However both of them exhibited the same features with quick adoption after reaching point of application and popularity overflow.

With this example, Demeester emphasized that when the block subsidy diminishes over time, Bitcoin will not lose its importance and that it will be better understood and refined as a virtual asset and its importance will be strengthened as a valuable asset.

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