Forward the Original Title‘Bitcoin? Bah!’

Today’s title is imitated from an article in the US Newsweek 30 years ago called ‘The Internet? Bah!’.

Today, Bitcoin has dropped below 80,000, and you will soon be surrounded by various voices criticizing and questioning Bitcoin. This article of mine is intended to act as a mental vaccine so that you won’t be surprised.

Although the title of the article is a bit joking, the topic we are going to discuss today - economic needs - is very academic.

The reason why I want to talk about this very academic topic is because a heavyweight expert took the opportunity of Bitcoin’s plunge to badmouth it, and he used a very academic tone, saying, “Bitcoin has no real economic necessity”.

This expert, Jürgen Schaaf, is an advisor to the European Central Bank. In an interview with Cointelegraph, he stated that “the idea of national Bitcoin reserves is highly risky.” While it makes sense for governments to maintain reserves of resources like oil and natural gas, “Bitcoin has no real economic necessity,” as the cryptocurrency lacks “actual economic necessity or relevant use cases.”

1. Bitcoin’s “Crash” Echoes the Claim of “No Economic Necessity”

It is clear that Schaaf made these statements to dismiss the idea that Bitcoin could serve as a central bank reserve asset. This stance directly contrasts with that of the Governor of the Czech National Bank, who previously expressed an opposing view.

To support his argument, Schaaf highlighted several of Bitcoin’s perceived weaknesses, such as its extreme volatility, potential for illicit use, and susceptibility to manipulation. He argued that Bitcoin is unsuitable as a central bank reserve asset because it cannot ensure monetary stability; instead, it could fuel speculation and wealth redistribution.

As an advisor to the European Central Bank (ECB), Jürgen Schaaf has a strong financial background and significant authority in the field. His opinions carry considerable weight in the industry—not just as the voice of a theorist but as that of a key figure in the European financial system. The ECB, being one of the most influential financial institutions in Europe, directly shapes economic policies across the Eurozone. Given Schaaf’s advisory role, his perspectives hold substantial influence over monetary policy and economic governance.

Interestingly, Schaaf made these remarks just as Bitcoin had fallen below $90,000 on February 25. Two days later, on February 27, Bitcoin dipped below $85,000, and today (February 28), it has dropped below $80,000. This sequence of events seems to perfectly reinforce Schaaf’s argument.

However, there is a fundamental cognitive bias in Schaaf’s reasoning—he equates economic necessity entirely with industrial society’s dependence on physical energy resources. His perspective remains anchored in the 20th-century paradigm of “oil as power,” failing to recognize the evolving demands of the digital age.

2. Bitcoin’s Value Comes from a New System

Bitcoin was not created to fulfill traditional notions of use value. Instead, its purpose is to deconstruct and reconstruct the global consensus on value. Bitcoin’s contribution to human civilization will far surpass that of oil.

Bitcoin is redefining our understanding of demand. It does not represent dependence on physical energy or traditional financial instruments but rather the deep-seated need for trust, decentralization, and security in the digital age. When the internet first emerged, skeptics dismissed it because it “couldn’t produce food.” Yet, it was the internet that revolutionized global information flow, innovation, and economic growth.

Bitcoin has created a value transfer system that is borderless, decentralized, and trustless—something nearly unimaginable within the framework of traditional monetary systems.

Especially in developing countries, Bitcoin has become a financial haven for many people. Especially in the face of the crisis of hyperinflation and currency devaluation, many families have begun to use Bitcoin to preserve their wealth.

• Argentina: Over the past few years, the Argentine peso has devalued rapidly, prompting many individuals and businesses to convert their funds into Bitcoin as a hedge against soaring inflation. Statistics show that Bitcoin adoption in Argentina is approaching 10%, while in Venezuela, the figure is even higher, exceeding 20%. These numbers reflect the real economic demand for Bitcoin in these countries.

• Venezuela: A Venezuelan family that started investing in Bitcoin in 2016 saw their wealth appreciate by over 4,000% in just a few years. Bitcoin not only protected their assets from evaporating due to currency devaluation but also provided an opportunity for wealth growth.

• Nigeria: Since 2019, despite fluctuating government regulations on cryptocurrencies—including a 2021 banking ban and a 2023 policy relaxation—Bitcoin trading volume has continued to rise, underscoring the public’s strong demand for it. The Nigerian government, however, is not pleased. It has even gone so far as to sue Binance in a domestic court, seeking $79.5 billion in damages.

Beyond its role as a store of value, Bitcoin’s decentralized nature has made it a powerful tool for cross-border payments. From 2018 to 2023, the number of users utilizing Bitcoin for cross-border transactions grew by more than 200%.

Of course, not everyone recognizes Bitcoin’s potential—just as the internet’s value was not universally acknowledged in 1995.

3. “The Internet?” Bah! - A Lesson for Today

The famous Newsweek article gained notoriety for its pessimistic predictions about the internet. The author questioned the commercial potential and societal value of the internet, making the following criticisms:

• “No online database will replace your daily newspaper.” — Skeptical of the internet’s threat to traditional media.

• “No CD-ROM can replace a capable teacher.” — Doubting technology’s role in education.

• “No computer network will change the way government works.” — Dismissing the internet’s political impact.

• “We’ve been promised instant catalog shopping—just click for a great deal. We’ll book flights, make restaurant reservations, and negotiate sales contracts over the Web. Stores will become obsolete. So why does my local mall handle more business in an afternoon than the entire internet does in a month?” — Questioning the feasibility of e-commerce.

By now, you know that every single one of these criticisms has been proven wrong.

The author of the article, Clifford Stoll, is an astronomer who is now 74 years old. He is far from being a stubborn skeptic. As early as 2010, he reflected on his article and admitted his mistake.

The reason for revisiting Stoll’s article today is that it perfectly mirrors the logic behind the current criticisms of Bitcoin.

When European Central Bank advisor Jürgen Schaaf claims that “Bitcoin has no real economic necessity,” his argument follows the same fundamental thought process as Stoll’s dismissal of the internet’s commercial value—framing the paradigm shift of the digital age within the outdated demands of the industrial era.

Just as Stoll could not have imagined Amazon’s trillion-dollar market value, traditional financial elites struggle to comprehend the new forms of economic demand that Bitcoin enables—such as censorship-resistant transactions, algorithmic trust, and temporal sovereignty—and the immense productivity these innovations could unlock.

Conclusion

History never repeats itself, but it often rhymes.

The value of all disruptive technologies is ultimately solidified within the cracks of old paradigms.

Bitcoin’s sharp decline and the skepticism surrounding it are reminiscent of the darkest moments following the burst of the dot-com bubble. In 2000, the Nasdaq plummeted by 78%, Amazon’s stock lost 95% of its value, and The Wall Street Journal declared that “e-commerce is destined to be a passing fad.” Yet, 24 years later, global e-commerce transactions have surpassed $6 trillion, and Amazon’s market capitalization is 30 times its peak value from back then.

Price volatility can never negate a revolution in value—just as a tsunami cannot erase the existence of the ocean.

The steam engine didn’t just create faster horse-drawn carriages—it ushered in the entire railway era. Likewise, Bitcoin isn’t merely altering the existing concept of money; it is building a new value network based on mathematical consensus.

Looking back from 2025, Stoll’s misjudgment serves as a constant reminder:

The true power of a technological revolution does not lie in what it replaces, but in what new worlds it creates.

If you still have doubts, I recommend reading this article: Bitcoin Should Be a Mirror for Us.

Disclaimer:

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