Bitcoin vs fiat: Why the ‘big red button’ problem dooms traditional money

On a remote island, a group of shipwrecked survivors faces a challenge: how to create a monetary system from scratch. Two figures emerge with competing visions.

One, Satoshi, insists on "perfect money" – a system with immutable rules, absolute scarcity, and no central authority. The other, Fiatello, advocates for a "big red button" that allows the government to change the rules whenever necessary.

As time passes, the consequences become clear. Fiatello’s system leads to inflation, eroded purchasing power, and asset bubbles. Wealth accumulates in the hands of a few, while the average person struggles. Even societal structures begin to shift, with economic instability creating long-term problems. Meanwhile, Satoshi’s sound-money system fosters lower prices, rising productivity, and economic stability.

For Joe Bryan, a Bitcoin evangelist with a background in physics from Oxford University and a decade in both investment banking and entrepreneurship, this analogy encapsulates the fundamental flaw of fiat currency.

“The reality is those are the symptoms, not the cause, and it's the cause that we need to understand, and the cause is the quality of our money," he explains. "If we solve that, then life becomes immeasurably better on almost every front.”

Bryan believes Bitcoin (BTC) is the solution that can break Fiatello’s cycle. Unlike centralized cryptocurrencies, which he sees as venture-backed projects, Bitcoin is “neutral, decentralized money for the world.”

“There is such a gulf between Bitcoin and everything else, they're not even in the same category,” he says. “It’s like conflating Bitcoin and investing in some dodgy, Backstreet venture-backed capital firm in some random country somewhere.”

This, Bryan argues, is why Bitcoin stands apart from altcoins and fiat currencies alike.

What makes perfect money? Bitcoin’s key attributes

In Bryan’s island experiment, the survivors identify seven essential characteristics of perfect money:

1. Scarcity

Money should have a fixed supply to prevent inflation and devaluation.

“Scarcity means you shouldn't work for something someone else can create for free," Bryan says. "Bitcoin has absolute scarcity, with only 21 million coins that can ever be created. In contrast, fiat currencies can be printed at will by governments, eroding their value over time.”

2. Portability

Money must be easy to store and transfer across borders. Bitcoin’s digital nature makes it highly portable compared to cash or gold.

3. Divisibility

For a currency to be effective, it must be usable in both large and small transactions. Bitcoin can be divided into satoshis (1 BTC = 100 million satoshis), making microtransactions possible.

4. Durability

Bitcoin, unlike physical cash, doesn’t degrade over time. Its blockchain ensures every transaction is recorded forever, making it more durable than paper money or even gold-backed currencies.

5. Fungibility

Each unit of Bitcoin is interchangeable, unlike programmable CBDCs, which could have spending restrictions.

6. Censorship resistance

“If you require permission from someone else to use your money, it's not your money,” Bryan emphasizes.

Bitcoin transactions cannot be censored or blocked, unlike bank accounts, PayPal, or CBDCs, which can be frozen.

7. Self-Sovereignty

Bitcoin allows true financial independence by giving individuals full control over their assets without intermediaries.

Bitcoin’s global reach: A viral message that resonates

Bryan’s ideas have spread worldwide, fueled by his recent viral video, What's the Problem?, which racked up more than 100,000 views in just three weeks.

More importantly, volunteers have translated it into native subtitles in 25 languages, ensuring a truly global audience can access his insights.

The response has been overwhelming.

“It’s been really gratifying to see the video resonate so widely,” Bryan says. “I’ve received hundreds of emails from people around the world, and it’s been amazing to see it shared by leaders in the crypto space. It just shows how hungry people are for a clear explanation of the problem and the potential solution that Bitcoin represents.”

Endorsements from industry leaders

Bryan’s video has gained recognition from some of the biggest names in crypto. Strategy – formerly MicroStrategy – CEO Michael Saylor and Coinbase CEO Brian Armstrong have shared it, with Armstrong even calling Bitcoin “a moral imperative.”

Despite its growing success, Bryan remains focused on education over profit.

“There is no way to monetize having people learn,” he says. “I’m just giving free information.”

Bitcoin as a once-in-a-civilization shift

For Bryan, Bitcoin isn’t just a new form of money – it’s a paradigm shift akin to the internet or the printing press.

“Bitcoin is the neutral monetary network bounded by energy that is beyond the reach of the control of any person, any company, any state.”

He acknowledges that mainstream adoption is still in its early stages, but the momentum is building.

“Bitcoin is a one-time event like the internet for us as a civilization, and everybody is going to get there with the understanding we are still just very, very early.”

Why Bitcoin matters now more than ever

In an era where governments print money at will, causing inflation and economic instability, Bryan argues that Bitcoin offers the only real alternative.

“There is no bigger priority for us as a species than solving that. Because if we solve that, then life becomes immeasurably better on almost every front.”

For Bryan, the question isn’t whether the world will reach Bitcoin – it’s only a matter of when.

 

Listen to the whole interview on The Crypto Radio's live player or in the Guardians of Bitcoin podcast.