Bill’s Blog October 22, 2020
Another amazing victory for the Bitcoin community in recent weeks. PayPal announced they will allow Bitcoin to be stored and used for transactions globally on their platform in 2021 Why is this so important? Mainstream merchant players see that the world has changed and want to join the blockchain/crypto party for the fees and other reasons. There are now hundreds of thousands of businesses that accept Bitcoin and many use it as wealth preservation (digital gold) and diversification.
Bitcoin has weathered many storms since its January 9, 2009 inception by the mysterious Satoshi Nakamoto. To understand why Bitcoin came on the scene, it’s best to read his 9-page white paper: https://bitcoin.org/bitcoin.pdf. Fundamentally, Bitcoin was created as a rebuke for the last major 2008-2009 global financial crisis and all the bank corruption and bailouts.
Satoshi not only questioned the status quo; he created a far superior digital currency system to transact peer to peer. Bitcoin has a built-in trust system, an open and transparent platform, limited coins (21 million) and is decentralized (meaning you do not need governments or 3rd parties to regulate and interfere with global commerce or your personal purchases). Satoshi basically asked: Why do we put our trust in a currency system with no restraints (unlimited printing of currencies), no accountability, nothing backing all fiat currencies globally, collusion by central banks with their bent for inflation (meaning: robbing our purchasing power year after year) and their polices of creating repeated market crashes? And so, Bitcoin was birthed.
Bitcoin was created so no one person can control the system. Satoshi built a “proof of work” reward system where 10’s of thousands of miners globally validate ever transaction using special software and hardware. It is an open source project (anyone can become a miner or purchase Bitcoin) and all transactions are permanently recorded on the blockchain and can never be changed. It’s an honest ledger.
So, should you consider purchasing a small amount of Bitcoin? The better question is: are you willing to learn enough about this amazing monetary innovation before you ever consider purchasing a fractional amount of Bitcoin or a couple coins? Another very important factor to consider: is our current fiat system becoming increasingly fragile due to the printing of way too much currency? And all fiat currencies are pretty much in the same situation. Historically, ALL fiat currencies eventually fail – thousands already have – and there is no exception. This means that your currency will one day be worthless – a sobering thought. So, having a few alternative digital currencies may make sense. Let me share my top 10 reasons to consider Bitcoin:
1). Limited supply of 21 million
2). Bitcoin has never been hacked to this point in history (it does not mean that it’s impossible)
3). All you need is a smartphone and a crypto-wallet and you can begin transacting
4). Over 2 billion people in the world have no bank account and need a simple and affordable solution
5). Bitcoin is the first proven digital currency to gain global mainstream adoption. Major financial firms like Fidelity (largest mutual fund company in the world) accept it. Bitcoin is transacted through futures contracts (CME), and an EFT is being created. There are now many billionaires declaring that they have taken sizable positions in Bitcoin (Paul Tudor Jones, Hedge Fund Manager Jack Dorsey and Jim McKelvey, Founders of Square). Japan has accepted Bitcoin as legal tender for a couple years now.
6). Our current fiat currencies are slowing dying and we need a trusted currency that cannot be manipulated or printed into oblivion. Digital currency will be the next evolution of money.
7). Bitcoin is the leader of all cryptocurrencies and currently holds a 61.5% market share and has a $313 Cdn. billion market capitalization. Many experts believe it will exceed a trillion plus dollars in the near future or $100,000 per coin.
8). Bitcoin is the most widely accepted crypto-currency on all global crypto-exchanges and wallets.
9). Global laws and regulations are evolving quickly so Bitcoin and other legitimate projects can be safely used.
10). Bitcoin has the potential to give you life changing profits if we experience another insane bull-run like 2017 (there have been 3 so far). Bitcoin has created 1000’s of millionaires already and I suspect many more are to come.
In summary, I want to remind you that ALL asset classes have RISK, and Bitcoin in no exception. Also, there has been a lot of hype and false statements concerning Bitcoin. Like, “Criminals use Bitcoin”. I am sure there are a few criminals who have used Bitcoin…but this is mainly a fear-based and false statement. It would be stupid to use Bitcoin in crime as all transaction have a public record and are permanently recorded. The number one currency for crime (billions of dollars annually) is the US dollar. Second, “Bitcoin is too slow”. Yes, it is for day to day transactions. The internet was initially too slow also, but technological break-throughs solved it. Likewise, innovations will solve Bitcoins slowness too.
If you would like to learn more about Bitcoin and other respected crypto-projects, I encourage you to do so. There are many trusted sources online now and if you would like personal consulting then please reach out to me. I can do so online or in small groups if you are in the Lower Mainland of BC. I am currently offering a discount for my 3-hour session that will teach you all the important basics. Regularly $125.00 /hour, but for one month I am offering consulting for $99.00 /hour. Please reach out to me at firstname.lastname@example.org or 778-539-7107 for more information or to receive crypto-currency/Bitcoin education.