Many people mainly view Bitcoin as a financial investment that can allow them to get rich. In reality, Bitcoin is much more than that as I will explain in this article. When you understand that Bitcoin is the Internet money protocol, you will understand why its replacement by an Altcoin seems almost impossible.
More than an evolution, a revolution
Bitcoin is a real technological revolution. For many, Bitcoin is even the most important technological invention since the advent of the Internet. For others, Bitcoin is simply a new financial investment that offers much higher return possibilities than conventional investments.
The fact that Bitcoin has transformed $ 1 invested at the start of 2010 in $ 90K at the end of 2019 can actually be a dream.
However, Bitcoin cannot, and especially should not, be reduced to a simple financial investment.
Bitcoin is much more than that. For me, Bitcoin is a multifaceted revolution : technological, industrial, social and ideological. Bitcoin is a protocol in its own right, the impacts of which go far beyond the financial aspect.
Many people miss the basics of Bitcoin because they only focus on the pursuit of profit. In what follows, I would like to lead you to understand that the Bitcoin represents something much more important for the future of humanity.
The impacts of the paradigm shift that constitutes Bitcoin are so wide that I would have to write an entire book to be able to hope to be as comprehensive as possible.
So I ask you in advance to forgive me if I miss some elements in this story. If so, feel free to tell me in comments, or directly through my social media.
The creation date of Bitcoin helps understand its raison d’être
If you really want to understand what Bitcoin represents, you need to be interested in its conception date. Bitcoin was created by Satoshi Nakamoto at the end of 2008.
It was on October 31, 2008 that Satoshi Nakamoto published his white paper presenting Bitcoin as “A Peer-to-Peer electronic payment system”.
Bitcoin was therefore designed following the banking and financial crisis of 2008. As such, Bitcoin protocol should be seen as an attempt to respond to weaknesses in the monetary and financial system. These failures are exposed to the light of day in every economic crisis. The 2020 campaign is no exception.
The message included in the genesis block of Bitcoin clearly confirms the raison d’être of Bitcoin:
The Times 03 / Jan / 2009 Chancellor on brink of second bailout for banks
Satoshi Nakamoto inserted in the coinbase transaction of the first block of Bitcoin the title of an article from The Times of January 3, 2009.
The message was very clear: Bitcoin seeks to offer the inhabitants of the Earth an alternative to a fiat system which no longer respects them and which has failed in its mission.
Well aware of the importance of his invention, Satoshi Nakamoto made the fundamental choice to remain anonymous and to offer it to the world as a gift.
In fact, Bitcoin belongs to all of its users. It constitutes a true democracy where each user has potentially the same weight.
There is no leader at the helm of Bitcoin who could be sued to shut down the network. Bitcoin is literally unstoppable.
Bitcoin is a necessity to respond to flaws in the fiat system
Bitcoin is a solution that emerges from the people. This solution can only succeed if its users make it a success. It’s all Bitcoin users who made it what it is today. Hope for millions of people around the world, but also a reality with a market capitalization of more than $ 170 billion as of this writing.
By restoring power to the people, Bitcoin represents the first step in the separation of money and state.
A famous quote from Satoshi Nakamoto justifies the need for citizens to regain power by removing it from the hands of central banks:
“The basic problem with traditional money is all the confidence it needs to work. You have to trust the central bank not to degrade the currency, but the history of fiat currencies is full of breaches of this trust. Banks have to be trusted to hold our money and transfer it electronically, but they lend it in waves of credit bubbles with barely a fraction in reserve. We have to give them our privacy, trust them so that identity thieves don’t empty our accounts. “
To function properly, the current monetary and financial system requires having absolute confidence in central bankers and banks.
Unfortunately, history has shown us that this is impossible. The Fed’s unlimited quantitative easing program currently underway is a good example of a central bank’s breach of trust in its citizens.
Danske Bank money laundering scandal is another example of betrayed trust from a banking institution. One could easily add to this the completely arbitrary confiscation of assets of certain people, or the refusal to carry out certain transactions for completely false reasons.
Since the advent of Bitcoin, more and more banks are blocking transactions to trading platforms.
They highlight a completely false desire to protect their customers.
The big question is what do they want to protect their customers from? They may want to protect them from the discovery of the truth if they were to exchange fiat money for Bitcoin…
The need for Bitcoin is therefore essential to regain your sovereignty, but also to no longer have to depend on third parties in which you cannot really trust.
Bitcoin’s protocol allows you to manage your money the way you want.
You can carry out all the transactions you want without anyone being able to stop you. Better yet, transactions on the Bitcoin network are super fast, and transaction costs are minimal (although a little less at the moment, for very specific reasons related to the recent halving).
All this in a pseudonymous network that protects your identity as long as you don’t reveal the addresses you use to other people. Not everything is perfect for privacy, but the Bitcoin community is working every day to improve this, and make Bitcoin even more protective of your privacy.
The Taproot evolution, or the Lightning Network, will improve this point in the future.
Bitcoin gives you back control, which means you can live your life on your own terms. With Bitcoin, you can choose to save what you own. It’s the exact opposite of what’s going on with the US dollar, for example. The problem is of course the same with other fiat currencies.
The ceaseless increase in the money supply in American dollars arbitrarily decided by the Fed devalues what you have in cash.
The high monetary inflation that we are currently experiencing in 2020 will make those who are already poor poorer.
Choosing to save your fiat money is impossible under the current system.
With Bitcoin, it’s different. Bitcoin grows in value over time, which gives you reasons to keep your Bitcoins for as long as possible. By keeping your Bitcoins, you will be rewarded in the future.
Bitcoin’s monetary policy is unique
The power of Bitcoin lies in its unique monetary policy:
- Fully automatic because it is registered in the source code of Bitcoin.
- A finite amount of Bitcoins known in advance: 21 million Bitcoins will be put into circulation as much as possible.
- Inflation in the supply of new Bitcoins which decreases over time thanks to what is called the halving.
- Supply inflation that will reach zero around 2140.
This monetary policy, which reduces the supply of new Bitcoins over time, should be contrasted with that pursued by central banks around the world.
Alors that central banks use and abuse quantitative easing, which consists of printing more and more units of their respective currencies, Bitcoin highlights the virtues of quantitative hardening.
Quantitative hardening gives more value to already existing units of Bitcoin.
With Bitcoin, you can therefore accumulate wealth with the guarantee that 1 BTC from 2020 will always be equal to 1 BTC of 2100. With the American dollar, this is clearly not the case as shown by the incredible erosion of a purchasing power of $ 1,000 since 1971:
Your $ 1,000 from 1971 lost 85% of their value in 2020 since they only give you purchasing power $ 150.
The problem with the fiat system is also its lack of transparency in my opinion. Many opponents of Bitcoin claim that it is used primarily to launder money.
Bitcoin is completely transparent
In reality, it is those who accuse Bitcoin of this who launder the most money.
The Danske Bank money laundering scandal is, in my view, only the tip of the iceberg.
When we check the numbers and transactions, we come to the conclusion that Bitcoin is used less than the US dollar for illicit activities.
The transparency of Bitcoin precisely allows access to all these figures. In today’s banking world, this is practically impossible and huge gray areas still remain. They allow unscrupulous people to continue to profit from a banking system which is still extremely corrupt.
If you have any doubts with Bitcoin, you just have to check it out for yourself. Its Blockchain is accessible to everyone. It is immutable, which means that all transactions carried out since the genesis block have remained as they were and could not be modified.
The Bitcoin slogan is not usurped:
“Don’t trust, Verify.”
Bitcoin teaches you to be critical. You have to figure it out for yourself. This is how you will discover the flaws in the current system. You will then probably understand that the powerful people at the head of this system know very well that the system has failed, but that they simply do not want to change it.
This system benefits too much a minority of very wealthy people. They obviously don’t want to risk losing their privileges. The Bitcoin revolution is necessary to bring about a more equitable system for all which will make it possible to reshuffle the cards.
Seeing fiat systemics like Warren Buffett being completely opposed to Bitcoin should alert you.
For me, the fact that Warren Buffett being so afraid of Bitcoin clearly shows that it is a necessity for normal people who are tired of undergoing a totally unfair system. The latter only increasing disparities in wealth since its creation 49 years ago.
Warren Buffett’s visceral hatred for Bitcoin also shows its limits. Warren Buffett is unable to adapt to major technological disruptions such as the Bitcoin protocol, and this could be the biggest mistake of his late career.
Bitcoin is the best protection against high monetary inflation
In the face of the current economic crisis, many are promoting gold as the ultimate solution to guard against high monetary inflation.
Recognized for decades, gold is indeed a good store of value. However, by remaining objective, Bitcoin is a store of superior value in all respects:
- Divisible up to 8 digits after the decimal point. You can buy 1 Satoshi, is 0.00000001 BTC. Sat is becoming the standard unit in the world of Bitcoin, that’s why I explained to you recently that there is already 8 million millionaire addresses in Bitcoin at the moment.
- Portability. Your Bitcoins can fit in your head as long as you learn your 24-word recovery phrase.
- Recognition. It is much easier to verify that your Bitcoins are authentic.
- Harder to counter.
- Very rare. The amount of gold on Earth is probably limited, but this limit is much greater than that of Bitcoin.
You can easily carry your Bitcoins with you, or send them to a friend on the other side of the world in minutes. With gold, it’s impossible.
In addition, entering the world of Bitcoin requires few resources.
You just need a smartphone and an internet connection to buy Bitcoin. From there, you are able to buy your first Bitcoins.
If you want to buy gold in 2020, I doubt you can do it as quickly and easily as you would for Bitcoin.
Bitcoin is the safest decentralized network in the world
The decentralized dimension of Bitcoin makes it much more resistant to attempted attacks. The Bitcoin protocol was designed to be resistant to all types of attacks. Since its inception, over eleven years ago, the Bitcoin network has never been hacked. The few bugs that made the network unavailable have been resolved at an incredible speed when you think Bitcoin is open source and belongs to everyone.
While only supported by its users, Bitcoin displays a uptime who has nothing to envy to those of web giants like Google, Amazon, or Facebook.
The uptime of Bitcoin has been 99.98% since its creation on January 3, 2009.
The Hash Rate of the Bitcoin network, which has been growing since its creation, makes it the most secure decentralized network in the world in 2020.
By buying Bitcoin, you also have the guarantee that your wealth is safe. Your best guarantee is that you will have to be responsible for your own safety.
It will be up to you to secure your Bitcoins on a hardware wallet. It may scare you initially, but it’s the price to pay to take complete control of your wealth and your life. It’s a meager price to pay in my opinion.
Bitcoin allows anyone who wants to become a network node. Indeed, its Blockchain is permissionless and trustless. In these conditions, Bitcoin gives you access to the best bank in the world: yourself.
Bitcoin is already a Plan A for millions of people
For people living in authoritarian countries, Bitcoin already plays a vital role. It is an incredible weapon to guard against inflation that is ravaging the Venezuela, Argentina, Iran, or the Zimbabwe. It also allows you to keep your right to freedom of speech.
The hyperinflation currently ravaging Iran is a good example of the raison d’être of Bitcoin and its absolute necessity for millions of people today.
Indeed, since nobody can confiscate your Bitcoins, you can speak without fear of having your bank assets frozen for example.
Bitcoin already plays a fundamental role in the protection of human rights. This role is set to grow in the future.
And even if you live in a western country, you may also need Bitcoin to protect yourself from the surveillance society that more and more governments want to impose.
The example of the Chinese social credit system seems to give ideas to the leaders of the great western democracies, which is nothing to write home about.
Fortunately, Bitcoin can help you cope. Of course, Bitcoin alone will not be the solution that will fully protect you from mass surveillance. However, the very specific protocol of Bitcoin will be part of the weapons at your disposal.
Bitcoin is the internet money protocol
Bitcoin is the weapon you will need to use to protect your privacy when it comes to money. More and more people are starting to realize that Bitcoin cannot be replaced by another cryptocurrency in the future for the simple reason that Bitcoin goes much further:
Bitcoin should be seen as the internet money protocol.
I do not know who is the author of the illustration which I will present to you below, but it allows to understand well why Bitcoin is not ready to be replaced by another cryptocurrency:
Bitcoin is a protocol in its own right which must be placed on the same level as TCP, IP, HTTP, etc.
When you understand this, you will understand why every passing day strengthens Bitcoin. It becomes impossible to replace Bitcoin for other cryptocurrency projects that claim to be better than Bitcoin.
Bitcoin is much more than just cryptocurrency.
You have to understand this if you want to really be able to make the most of the Bitcoin revolution. It would be a shame to simply limit yourself to the financial side of Bitcoin.
I therefore advise you to ask yourself too the question of what Bitcoin really represents. By searching for the answer to this question, you will discover all that Bitcoin has already brought to the world, and all that it will bring in the future. After that, I think there is a good chance that you too will become a Bitcoiner.
Developer by training, I discovered Bitcoin in 2014 but I did not immediately understand the importance it could have for the world of tomorrow. I got into it more deeply from the start of 2017 and since then I haven’t given up on the business.
Passionate about Bitcoin and the new system it is trying to build for the future, I decided to participate in its evangelism at my modest level by writing on Bitcoin, Blockchain and crypto currencies on different supports.
It is with pleasure that I publish some of my texts in French on The Coin Tribune.
I also write a lot about personal development and self-improvement.
Do not hesitate to exchange with me via social networks or in comments on my articles if you have questions about my articles.