During these times, I see a lot of FUD around and newbies are converting their sats back into USD because they fear to lose it all. That’s unfortunate.
What are the reasons of this sell-off? They treat Bitcoin like risky stocks, get rich quick scheme or worst, they don’t understand how basic economy works They have no idea that Bitcoin changes everything and will transform our entire society for the better.
As a result, I wanted to emphasize once again why our world needs Bitcoin and reassure everyone that its value is scheduled to go to infinity on the long term.
1) We will always want to have more than our neighbors
Since the early ages, humans have always lived in societies to survive and evolve. Social mechanisms have bring the dominance question into the equation: in order to establish our status among our society, we want to have more money than others to show dominance.
Not so long ago, some guys found a new way to distinguish themselves from the masses even more. Their idea was to privately own businesses and make people work for them so they can keep all the profits. It is called capitalism and is still considered the best system nowadays.
2) Inflation makes rich richer, while making poor poorer
An interesting lever for our elites to keep earning more is infinite growth. One way to do it is to let banks print new money which will be injected into the economy. Businesses will produce more, people will have more money, making owners wealthier.
However, the more money is printed to support growth, the bigger the money supply gets, and the more prices of goods and services go up. This is inflation. As wages don’t increase at the same level, employees get less buying power over time, making them poorer.
3) Deflation system will never be voted by elites
Remember, governments and business owners will always want to save their privileged status. Stopping money printing, would result in deflation, which means that prices would go down and people stop buying. Why buying something today when it will be cheaper tomorrow?
At that point, companies would go bankrupt, and shareholders would lose their wealth. You know understand how this is important for them to keep inflation running. Quite easy to do : banks simply have to lower loans APR to encourage people to take credits and buy stuffs.
4) Inflationary system has plenty of other negative effects
Inflation is also an endless nightmare. Banks or countries borrows money from central banks but their debts will never be paid back. Instead, they take new debts to reimburse part of the old debts. Money printer will never stop. This is actually getting worst over time.
Last but not least, inflation is not a sustainable system for our finite planet. Always-increasing mass consumerism consumes always more energy and resources that are not abundant. Global warming and climate change will never slow down by itself in an inflationist economy.
5) Be your own bank with Bitcoin and change the system
To make things clear from the start, Bitcoin is our only hope to change the system. You don’t know who to vote for at the next elections because you don’t trust them to bring a working solution? Just buy Bitcoin and hold it. This will be your best vote to have a real impact.
Here are the 5 main reasons why Bitcoin is the only viable solution :
a) Bitcoin is decentralized: it is not governed by anyone and has been designed to follow the exact same principles and will continue to deliver as promised forever. Algorithms embraces certainty. It is the opposite of human-based government that can change rules every now and then to please their own bank account.
b) Bitcoin has a 21M max supply: this is the first time in history we are dealing with an asset that will always be absolutely finite (not even gold), and cannot be replicated. Less and less coin will be produced until 2140, making it the perfect deflationary asset, without mentioning coins that will be lost forever. It is the opposite of central banks which are printing infinite FIAT currencies.
c) Bitcoin is the most secured asset: billions of successful transactions to date and millions of wallets without a single hack to date. The more people join, the more the network is strong and secured. Bitcoin is your secured property as opposed at current systems where banks are hacked every day and could collapse or take your gold in absolute necessity.
d) Bitcoin is the most liquid asset: you are always 1 click away to send any amount to anyone, at any time, and anywhere in the world. Everyone can be its own bank without any government intervention or third party censorship.
e) Bitcoin is the perfect ledger: blockchain technology keeps perfect track of every transaction that has ever happened. You would rather buy your drugs with cash than buying them with Bitcoin. Same principle with corrupted governments in a lot of third countries.
6) Bitcoin is a store of value asset above all
As you have probably noticed, and despite what is written on the Bitcoin white paper, I want you to treat Bitcoin like an store of value asset first. The currency/cash feature is just the cherry on top the cake that Satoshi offered to us.
However, as each Bitcoin transaction is considered a taxable event in many countries, this does not advocate for a currency usage. The high transaction fees are also a challenge that will need to be adressed. There are layer-2 solutions like lightning network that will help in that matter.
7) Bitcoin is incentiving holders to think long term
Bitcoin being deflationary, it encourages people to hold their sats on the long term. Nobody wants to sell their bitcoins into a weaker currency that is losing more value over time. Never compare the price of 1 BTC to USD, this is pointless as USD price will go to infinity because of infinite money printing. This is why 1 BTC will always be equal to 1 BTC.
To judge Bitcoin’s value, think instead on its USD market capitalization and compare it to other scarce asset market caps. Bitcoin still has room to grow 10x its current price to have the same value of gold. 100x to have the same value of real estate. If you consider that Bitcoin is scarcer, more secured, and more liquid than these 2 assets, I let you imagine how early we still are.
Satoshi has created the ultimate savings account, going up to infinity and making long term holders winners.
I hope this summary will help people to realize how important Bitcoin is for our future. It is our escape gate to a fair, inclusive and sustainable world. Buy, hold and spread the word around you!
And that’s all I have to say about that.
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