Bitcoin Is More Than An Investment

A Bitcoin today worth roughly $50 000. Does this valuation surprise or make sense to you?

​

It shouldn't if you understand the trends we are going. As we live more and more part of our life digitally, there will be more demand and hence price appreciation for digital assets and services

​

Apple, Google, Amazon have all "made it". Bitcoin is just another kind.

​

In fact, bitcoin has outgrown all the biggest tech companies within the last 10 years. It is, after all, the best performing asset of the decade with a cumulative gain of over 20 000 000% since 2011.

​

This means that if you have put 100 USD into bitcoin back in 2011, it would have returned you a modest

$20 000 000 today. Sound too good to be true?

​

But let's be honest here, none of us knew bitcoin even exists back then. So it is probably fairer to look at the annualized average return instead, which is about 230% for bitcoin.

​

To put into perspective, let's compare that number to other traditional investments since 2011:

- The USD depreciate/lose in value by -2% annually

- SP500 (stock) yields an average of +14% annually

- Real Estate is about +10% up

- Gold is about -0.5% down

​

Should there still be a debate for investing in bitcoin?

​

Probably not. The numbers don't lie. It is by far the best investment anyone could make within the last given 10 years.

​

But getting a high return on investment (ROI) does not necessarily make it a good or a useful investment. For the sceptics out there, many of you are probably wondering if this is the biggest scam in the history of mankind.

​

So let's start small, to invest in something we must understand it first. So what is bitcoin?

​

In simple term, bitcoin is a network of money that exist solely in the digital space. It aims to become the digital money of the entire world.

​

But like with any form of money, a substantial amount of adoption and trust is required in order for any currency to exist and have values.

​

So if nobody believes in the value and utility of bitcoin, then like most money, it becomes worthless as a currency, especially since it is a digital asset.

​

"But don't we already have the digital US Dollar, DK Kroner and VN Dong? Why do we need another type such as bitcoin?"

These are great questions to ask, and the simple answer all has to do with which form of money is best to use.

​

Bitcoin, fueled by technology, was designed to be a better form of money than all the ones that existed today.

​

So perhaps to better understand "What is Bitcoin?". A better question to ask is "What is Money?"

​

So what is money?

​

More often than not, you will find yourself a bit confused and conflicted answering this question.

​

This is likely because you understand the function of money, as a medium of exchange, but are not quite sure what gives it the value to do so.

​

In your mind, it is probably just common sense: to use, trade and exchange for everything and anything you want because they are all priced in your native currency.

​

An US dollar can be traded for a few bananas, but while bananas have actual value as food, what can be said for the USD?

​

Think about it.

​

The answer is nothing.

​

The money as we know it today, whether in paper form or as digits in a bank account, has no intrinsic value whatsoever.

​

Before, money was actually backed by something rare, valuable and has actual utility such as gold or silver.

​

Today, it is backed by nothing and can be printed or created digitally out of thin air.

​

So why are we all still using it?

​

One reason is because we have no other choice.

​

Since birth, we have all been "enforced" and conditioned to believe in our governments for delivering "promises" of bettering our life in exchange for our services and hard works.

​

These "promises" take place in the form of money that the government issue, regulate and control

​

We called these "fiat currency", in which "fiat" means "because I said so"

​

Such form of money present a clear problem that relates its value to the word "trust" and to not just any entity, but an entity powerful enough to say "fiat"

​

In this sense, we can determine the value of any money by two factors: the trustworthiness and the powerfulness of a controlling entity

​

"Promises" from the UK government is valued differently than "promises" from the Zimbabwe government

​

Entrusting your wealth to Danish Central Bank is not the same as doing so with the Lebanese Central Bank.

​

This is why, believe it or not, not all money is WORTHLESS like some may say.

​

Some have more value, other has less, but their values are all arbitrary and intangible depending on the political, economical and social power they hold.

​

This is a huge problem if the value of our hard work is stored in such form of money.

​

Despite the perception of it being the safest asset class to hold, it is, in fact, not risk-free at all like one might think

​

Not only does our wealth exist entirely based on trust and belief that the government has our best interest, it is also exposed hugely to the dynamic of power that constantly fluctuates within this world

​

So when a currency collapse, it is either because the people lost faith in it or because the government weakens in political and economical power or both.

​

Often, these two effects "help" each other in accelerating the rate at which that currency collapses.

​

This is what happened to nations such as Venezuela, Turkey, Lebanon and Argentina today, where their currency enters hyperinflation mode causing widespread poverty and destruction to the financial future of every single citizen.

​

And as people lose faith in the system, so will it lose power in politics and economy, driving the value of the currency even lower, affecting even more citizens until everybody abandons it, making it completely WORTHLESS.

​

This is what happened to the Zimbabwe Dollar and likely the fate of all fiat currency: the trends toward zero.

​

Proven by even the mighty Roman empire of the past, the collapse of any nation and its currency can be pointed to the biggest source of all problems: extreme centralization of power

​

Extreme centralization in a fiat, trust-based monetary system is what responsible for all the corruption, unfairness and suffering that exist in this world.

​

In such system, nobody is ever truly free or truly rich. There only exists the powerful and the powerless.

​

Extreme centralization of power exists because we give all the power to governments and central banks to control much of our life and our financial future

​

The biggest evidence for this source of problem is the fact that every government today owns an infinite printing money machine.

​

And in the modern age, almost every collapse is initiated by the abuse of this very power against their own citizens.

​

To those who think living in a democratic and first world nation means their wealth and future is safe: No one is ever safe within this system.

​

The world today is a complicated place, where one layer of trust between you and your superior is not enough. You must establish trust with other superiors as well, especially the most powerful ones, the superiors of your superior and those that potentially replace your own superiors.

​

But they are like us, driven by human nature, fueled by fears and greed, so how do we know if they have the best interest for us and not for they themselves?

​

How do we ever trust those who hold so much power that can change the lives of millions and billions?

​

The answer is: we can't.

​

As the users, as the citizens, as the people, we are POWERLESS in this system entangled by networks of weak "promises" and volatile human emotions from those at the top and only want to ever be at the top.

​

And if power is centralized in the hands of the wicked and the incompetence, we are guaranteed to suffer, whether by tolerating their bad decisions or paying for their mistakes

​

This is exactly what happened in the 2008 financial crisis, where banks collapse the financial system, causing millions of jobs lost, lost savings, lost homes and even lost lives.

​

Yet in the end, they get bailed out by governments because they are somehow "Too Big Too Fail"

​

At the time, who do you think they cared more: The economy or you, the people?

​

In a globalized and digitalizing world today, trust is a liability.

To safeguard our wealth and our financial future, we must depend less on trust, while at the same detaches our lives from this centralized system in which everything is predetermined and dictated for us by one or a few entities.

​

To do so, we must create a new system of money, where we should never have to question the value of our hard work regardless of the trust we have with our government.

​

To do so, we must create a new system of money, where we all have a say for our financial future and consequently, a choice in how we want to govern our life financially.

​

To do so, we must create a new system of money, where trust is no longer overdependent and where power is distributed and decentralized among the people.

​

That system is called #Bitcoin

​

In basic, bitcoin is a decentralized system of money, that enables frictionless and trustless transactions without the needs of banks and governments.

​

Bitcoin has a maximum supply of 21 million coins to ever come into existence, a transparent network where everything is recorded in public, and an immutable nature where no one has the ability to restrict the freedom of another.

​

Functions by codes, maths and logic. Bitcoin is a system of money that is unbounded from the fickleness of human emotions and hence, free from the risk of corruption and manipulation.

​

Governs by the people, by the participants Bitcoin is a system of money that is actually designed to be distributed and fair among everyone, regardless of who you are and where you grow up in.

​

It is the only system of money that is actually detached from the chaos and power-driven and competing of the human realm.

​

Bitcoin, by definition, is the representation of equality of opportunity, and with it present that path towards freedom and responsibility that is available for any human being exists on Earth.

​

So whenever someone asks how much a bitcoin should be worth? Ask them how much would they put the price on freedom.

​

This is why it doesn't matter what the price of bitcoin may end up being today or tomorrow.

​

Unlike the USD or any other currency, 1 BTC today is always equal to 1 BTC tomorrow.

​

Just that thought alone is so liberating.

​

With the trends continuing into the digital age, a valuation of $1 000 000 and over per bitcoin is not a matter of ifs but a matter of when.

​

Not because of price speculation but because the value of what it stands for is really that significant:

The ability to take back control of our lives and dictate our own future.

​

It is the only thing in existence that provides such a path for humanity

​

#Bitcoin is truly the brightest hope for all of us