Why Bitcoin?
Stephen Burke
I'm not a financial advisor, but I absolutely love Bitcoin.
I'm not a financial advisor, but I absolutely love Bitcoin.
I’m not a financial advisor, but I absolutely love Bitcoin. I’ve been closely following the Bitcoin market for 3 full cycles and have seen the highs and lows. I don’t plan to try and convince you to buy Bitcoin, but I do want to share some of my thoughts and produce some reasons for why I believe Bitcoin is the future of money that are backed by facts.
Bitcoin is a digital currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. It is a decentralized currency, meaning that it is not controlled by any government or financial institution. Instead, it is a peer-to-peer currency that is verified and recorded on a blockchain. It runs on a technology called blockchain, and it open-source. It is a store of value that is measured by mining energy.
Although it cannot be physically touched, Bitcoin has unique properties that make it valuable; it is verifiable, transparent, and immutable. Essentially, it is impossible to counterfeit, double-spend, or fake. And because this technology is backed by math and cryptography, it is impossible to manipulate the supply of Bitcoin.
Over the course of my cryptocurrency journey, I have learned a lot about the properties that make crypto projects successful. There are a number of similarities between Bitcoin and other cryptocurrencies, but there are also some key differences.
Bitcoin is unique because it does not have a CEO. It is a decentralized currency meaning that it is controlled by its users all around the world. There is no central point of control, and no single entity can manipulate the supply or demand of Bitcoin.
Every other cryptocurrency has a CEO, and they can easily manipulate the supply and demand of their own currency. This is such an important point to understand. With a CEO, there is always the potential for corruption and manipulation. What is stopping a project from creating a new tokens? What is stopping a non-bitcoin project from dumping their pre-mined tokens on the market? Nothing.
Bitcoin is the only cryptocurrency that does not have a controller. Once the pendulum started swinging in 2009, it has become impossible to stop; the same cannot be said for other cryptocurrencies.
Bitcoin is a store of value that is measured by mining energy. This means that the more energy that is used to mine Bitcoin, the more valuable it becomes. A common misconception about Bitcoin is that it doesn’t have any intrinsic value. While it is true that Bitcoin cannot be touched, it is important to understand that people have spent electricity to mine Bitcoins. The energy used to mine Bitcoins is a direct representation of the value of Bitcoin.
Bitcoin’s mining distrobution is cut in half every 4 years (known as a “halvening”). This creates a natural scarcity that makes Bitcoin more valuable year over year. With a cap of 21 million Bitcoins, and no possibility of creating more, Bitcoin is the only currency that can be stored indefinitely without losing its value so long as there is a network of miners and market demand.
I promise there are many more reasons why Bitcoin is the future of money, but I hope this (short and simplified) explanation helps you understand why I believe Bitcoin has a future in our society. I would love to see Bitcoin take over and become the world’s most dominant currency; completely free of any government or bank corruption.