Cryptocurrencies

The Seven Pillars of Bitcoin (BTC) – Cryptocurrencies

Much more than a technological revolution, Bitcoin is an incredible monetary revolution. The technological disruption at the heart of Bitcoin is there to give credibility to Bitcoin. To succeed in its mission, Bitcoin relies on seven fundamental pillars that I propose to detail in this article.

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Introduction to the future promised by Bitcoin

Bitcoin is a monetary revolution that will change the world of the future. Not only will Bitcoin change it forever, it will change it for the better. The Bitcoin system will help build a fairer and simply better world for everyone.

When I explain this, some people seem dubious.

The fact that I am a Bitcoiner would prevent me from seeing things objectively. In reality, I think it is quite the opposite. Being a Bitcoiner allows me to see things as they are.

I have long since swallowed the famous metaphorical red pill that Morpheus presents to Neo in the movie The Matrix. From then on, I discovered the disturbing truth about the current monetary and financial system. This allows me to better value all the characteristics of Bitcoin.

Besides, I am convinced that it is impossible to truly appreciate Bitcoin for its true value if you have not discovered the disturbing truth about the current system.

Indeed, you cannot appreciate the solution to a problem if you have not become aware of the problem yourself.. This is obvious, but I like to say it again, because a lot of people do things the wrong way round by first buying Bitcoin without trying to understand the problems it solves.

Without realizing the why of Bitcoin, you will not be able to have complete confidence in Bitcoin and apply the best possible strategy when its price will fluctuate sharply.

The Bitcoin revolution is made possible by seven fundamental pillars on which the Bitcoin system is built. I will introduce you to these seven pillars of Bitcoin in the following without the order of appearance indicating a greater importance of one of the pillars over the others.

1. Open Source

Bitcoin is based on open source software. It is one of the pillars that has fostered the incredible success of Bitcoin. Anyone can access the source code of Bitcoin.

Anyone can check for themselves how the Bitcoin network works. Best of all, anyone can contribute to Bitcoin developments. The community of developers who help improve Bitcoin every day is one of Bitcoin’s main strengths facing all the competitors who claim to be able to supplant it one day. Bitcoin is above all a monetary revolution.

Its disruptive technology serves to give credibility to its monetary attributes which make all the difference. Many people are mistaken in thinking that Bitcoin will one day be supplanted by more efficient technology. This is not where the real competition is.

No need to look for the next Bitcoin. The real revolution took place with the invention of Bitcoin. In the years to come, Bitcoin will evolve in the same way the Internet has evolved since its inception.

Thanks to its developers, Bitcoin will become more secure and reliable every day to guarantee the security of the billions of dollars that its users have invested in it. More than just money, the security of the Bitcoin network is essential to ensure that the Bitcoin revolution can continue to progress smoothly.

2. Transparent

The Bitcoin network Blockchain is based on open source code, which is the first of the seven pillars as I explained to you previously. This allows everyone to check what their source code is doing. In addition, its Blockchain is permissionless and trustless. Anyone can become a node in the Bitcoin network. Any user can check all validated transactions on the Bitcoin network since the Genesis block mined on January 3, 2009 by Satoshi Nakamoto:

Genesis block of the Bitcoin network

This transparency of Bitcoin allows all its users to form their own opinion on the truth. The consensus obtained gives weight to the Bitcoin network.

This possibility of checking everything for yourself is found in the Bitcoin currency:

Don’t trust, Verify.

Bitcoin will never impose a truth on you that is not yours like the current monetary and financial system. You will be free to determine what is the truth for yourself. When you become a Bitcoiner, you then make a habit of developing a keen critical mind that prompts you to check everything for yourself.

3. Neutrale

By creating Bitcoin, Satoshi Nakamoto was well aware that he was inventing a technology capable of revolutionizing the current monetary and financial system.

Rather than wanting to profit financially from his invention as all of the founders of Altcoins do, Satoshi Nakamoto has decided to give Bitcoin to everyone on Earth as a wonderful gift.

It is then up to its users to make Bitcoin a success or a failure.

This is an important notion in the world of Bitcoin. There is no leader. All Bitcoin users are the same weight, and this is something truly revolutionary. This Bitcoin neutrality is one of the fundamental pillars that explains its great success.

As long as you have the private keys of your Bitcoins, no one can confiscate them from you. In addition, no one can prevent you from carrying out the transactions of your choice.

As the US dollar has been the world’s reserve currency for 100 years, more and more people are realizing that their life expectancy at this position is now tight. The incredible weakening of the US dollar since 1971 seems never to stop and drive the value of the US dollar towards zero.

Some believe that the US dollar cannot be replaced, because there is no alternative.

These people quickly forget that Bitcoin is precisely the credible alternative to the US dollar which is at the heart of the current monetary and financial system.

Many countries are beginning to no longer bear the exorbitant privilege that the US dollar brings to the United States. Many are seeking to reduce their dependence on the US dollar. Completely politically neutral, Bitcoin will be an increasingly popular alternative in the years to come.

4. Decentralized

The Bitcoin network is decentralized. This decentralization is an incredible strength of Bitcoin. A real pillar that allows it to make the difference with all existing Altcoins.

This makes Bitcoin unstoppable, no matter what Donald trump or to other powerful people in this world. This decentralization makes Bitcoin more resistant to potential attacks. Its network has posted an uptime of 99.985% since its creation:

Bitcoin has posted impressive uptime since its inception

This uptime has nothing to envy to those of the web giants. It’s amazing when you consider that Bitcoin has developed only because of the will of its users to build a better world for all. Bitcoin has never received financial aid from private investment banks or from states.

Its current $ 200 billion market cap is a phenomenal success, and it’s obviously just the start.. The best is yet to come for Bitcoin.

Currently, Bitcoin remains the most efficient solution for quickly transferring money around the world. The transaction fees are almost zero compared to the bank fees for such transfers.

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In addition, transfer times of around 10 minutes are incomparable with what is done on the SWIFT interbank payment network where it lasts 2-5 days at best.

The complete independence of Bitcoin allows you to transfer money without having to answer prying questions that bankers or governments love to ask of those who transfer money through the SWIFT interbank system.

Bitcoin gives you the freedom to live your life on your own terms.

5. Resistant to censorship

The absence of a leader has allowed Bitcoin to become a true democracy where all users are equal. Each user is free to use their Bitcoins as they wish.

No one can force you to use your Bitcoins against your will. You can send your Bitcoins to anyone on the network.

Your bitcoins can never be confiscated as long as you have the private keys. To remind yourself of this necessity, remember this golden rule which is written at the heart of the Bitcoin Club rules :

Not your Keys, Not your Bitcoins.

Bitcoin therefore allows you to preserve your wealth over time in a censorship-resistant manner.

With the current banking system, governments can put pressure on you by threatening to confiscate what you own. With Bitcoin, you don’t have that fear anymore. This is an incredible guarantee in a world as uncertain as the one we live in in 2020.

6. Secure

The proper functioning of the Bitcoin network, as well as its security, are ensured by Bitcoin users. This is essential, because it implies that without its users Bitcoin would be nothing.

In the world of Bitcoin, you will discover a double dependency: Bitcoin needs you as much as you need Bitcoin.

Bitcoin miners make their computing power available to the network in order to validate blocks of transactions. A transaction block is validated every 10 minutes on average.

To encourage miners to ensure the proper functioning of the network, Satoshi Nakamoto has planned two things:

New Bitcoins are therefore issued, in a predictable way, after each block successfully added to the Bitcoin Blockchain. This allows anyone to predict the issuance schedule for new Bitcoins until 2140 when all Bitcoins have been issued.

Currently, Bitcoin is the world’s most secure decentralized network.

Its security keeps getting stronger over the years as the network hash rate increases:

The Bitcoin network hash rate keeps breaking records

It is also an indicator of the health of the network which protects it from potential attacks such as a 51% takeover of the network hash rate in particular.

Such a secure network reassures users, but also investors, about the success of the Bitcoin revolution in the years to come.

7. A single monetary policy

With the decentralization of the Bitcoin network, this last of the seven pillars is probably the most important. Bitcoin’s monetary attributes make it a species apart in a world where everything is going digital.

This is what will keep Bitcoin from disappearing in the future.

While the US dollar, and all fiat currencies, can exist in unlimited quantities since the establishment of the current monetary and financial system in August 1971, Bitcoin exists in finite quantity.

There will never be more than 21 million BTC put into circulation.

This gives an incredible guarantee to all Bitcoin users. By buying 1 BTC, you know that you will still own 1 in 21 million Bitcoin in 10, 20, or 50 years. Bitcoin thus avoids devaluing what its users have.

Apart from time, you won’t find anything rarer on Earth than Bitcoin. It’s the rarest thing ever created by humans.

Bitcoin’s monetary policy is also distinguished by the fact that the issuance of new bitcoins is predictable. It is automated in the source code of Bitcoin and does not depend on any arbitrary human decision. No one can decide to speed up the rate of issuance of new Bitcoin.

The inflation of the supply of new Bitcoins inevitably decreases over time. Every 210,000 blocks issued, the reward allocated to minors is halved. The last halving took place on May 11, 2020. Since then, inflation in the supply of new Bitcoin has fallen to just 1.8% per year.

At the next Halving, at 840,000 block height, that inflation will drop below zero for the first time in history. Bitcoin will become the rarest asset in the world ahead of gold and its annual inflation of 1.6%.

This inflation will reach zero in 2140 when all Bitcoins have been issued.

Bitcoin’s monetary policy is to be contrasted with the quantitative easing practiced by central banks. In the case of Bitcoin, we talk about quantitative hardening. It is an incredible virtue of Bitcoin that protects all of its users. Among the pillars of Bitcoin, this is one that makes Bitcoin totally different from anything that existed before its creation.

Conclusion

Bitcoin is the biggest technological disruption since the Internet. Bitcoin’s technology is there to give credibility to its monetary attributes. These attributes make Bitcoin a real monetary revolution.

Building on the seven pillars that I have just presented to you, Bitcoin is building a fairer and better world day after day for all its users.

It is only a matter of time before more people realize it. In fact, the adoption of Bitcoin will explode in the years to come. With a limited supply, and inflation that decreases over time, the price of Bitcoin is promised to reach one million dollars within 20 to 30 years.

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Those who choose to support Bitcoin the earliest will naturally be the ones who get the greatest reward. The good news is that it is still very early in the world of Bitcoin, and you still have the opportunity to take full advantage of it. You decide.

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