The more I read about and study Bitcoin and blockchain technology, the more I marvel at what is happening in our exponential world.
Let me share with you two important ideas about Bitcoin I have come to understand more fully. They were probably obvious to many “bitcoiners” of course, but I did not give them much thought until only recently.
As those of you who have read my posts on LinkedIn or on WhiteBeardWisdom.com may remember, I have written previously that Bitcoin is a many-splendored thing. For example, we can describe Bitcoin as digital gold, as sound money, and, more recently, as a payments network by way of the Strike app on the Lightning Network. The latter use case is the brainchild of Jack Mallers, CEO of Zap and Strike. His Strike app can convert several fiat currencies into Bitcoin, send it around the world, and convert it back into a fiat currency instantaneously, at almost zero cost. This capability is a game-changer; its implications are astonishing in the world of payments and remittances.
Bitcoin Is An Investment Opportunity Like No Other
I believe that Bitcoin is an investment opportunity of a lifetime because of its decentralization, immutability, and transparency, as well as its deflationary aspect (the maximum number of Bitcoin will be 21 million coins). Most people who have bought Bitcoin have bought it because of its price appreciation (even though it is highly volatile) and the chance to reap order-of-magnitude returns, longer-term, say, five to ten years out. Investment returns represent the predominant mindset of most investors. However, there is another aspect of Bitcoin that I believe is much more important than its investment value.
We are beginning to see the end game for fiat currencies throughout the world, including the U.S. dollar. The Russia/Ukraine war has highlighted these vulnerabilities. Consequently, Bitcoin is now becoming a means to monetary freedom for many around the world. The next paragraph explains this in more detail.
Bitcoin Is Also A Road To Monetary Freedom
Citizens of the West and other developed countries around the world are part of the so-called banked world. We have access to credit cards, payment systems, bank accounts, insurance, and a myriad of other financial services.
However, there is a world out there in which three or four billion people live that is the unbanked world. Just one example should suffice to demonstrate this: the almost 1.4 billion people who live in the 54 countries in Africa. These countries use Bitcoin because their fiat currencies are not usable internationally or the purchasing power of their currencies has been degraded by high inflation rates.
Two other extreme examples present themselves: the Palestinians who live on the West Bank or the Gaza Strip and the citizens of North Korea. These two groups have lost their monetary freedom, but Bitcoin provides a safe and secure means to transfer funds or make financial payments without oversight or control of a central authority or financial institution. Everyone can become his or her own bank in that unbanked world. That is monetary freedom for one and all, despite the lack of personal freedom or independence.
These changes are coming more rapidly than anyone can fully appreciate. The clues are there but difficult to interpret. However, we must recognize that forewarned is forearmed.
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Cordially,
Andrew J Guinosso
External Link: https://www.coinbureau.com/
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Disclaimer: Nothing in this post is meant as financial advice. My opinions are purely for informational or educational purposes.