January 23, 2022
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Bitcoin, Bullshit and How to Live With It

These days, wherever you look,A huge amount of misinformation (nonsense) is spreading about Bitcoin and all other "cryptocurrencies". And, naturally, it is unpleasant to see that so many people are being misled. At the same time, plunging into this rabbit hole, you inevitably begin to wonder what money is and how our monetary system actually works. Over the years, as my understanding of these things grew, so did my passion for safe money, free from corruption.

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Promoting fair money is worth the stresswhich arises when they are protected from all that nonsense, which is also called Bullshit (abbreviated - bs, aka FUD), which is imposed either by authoritarian bureaucrats or by the mainstream media. And that's not to mention all the charlatans who hope to fool whoever they can into thinking that this is just another "technology" and therefore are just trying to sell you their Shitcoins.

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"Blockchain, not Bitcoin!" Lol ...

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Today, too many people mistakenly confuse Bitcoin with other cryptocurrencies, thinking that it is just one in a thousand coins.

“Of course, Bitcoin is in first place now, but that could easily change. Don't you remember MySpace? "

“I love Bitcoin, but it's actually just Gold 2.0. Cryptocurrencies are much more than just Bitcoin. "

If you see someone confidently doingstatements like this - you should immediately try to discredit all their opinions on this issue, because they are either ignorant and naive, or simply dishonest.

Bitcoin is not a company to overtakecompetitor with the best product. Bitcoin is a network with a specific protocol, and just like the whole world uses only one protocol (TCP / IP; aka the Internet) to transfer information - the world will converge on only one protocol to transfer value.

“Most people mistakenly acceptcryptocurrencies for the technical revolution, at a time when, in fact, it is a monetary revolution. Any cryptocurrency competes with each other as a monetary commodity. And when a truly free market for monetary goods is formed, there will be only one winner who will take everything. "

- Marty Bent

There is Bitcoin and there are cryptocurrencies. Bitcoin is safe money. In turn, almost without exception, all cryptocurrencies can be divided into two categories: Vaporware and scam (fraud).

[Note. translator.Vaporware is a term that describes a product (usually software or hardware for computers) that is reported to the general public as being developed, but which, as a result, is never released to the market. This happened with most of the projects that conducted ICO (fundraising) on ​​the wave of hype, but never created the final product.]

Since many of these alternative coinsbacked by deep-pocketed venture capitalists who understand how much "free money" they can make from speculation - they do a great job of marketing.

In turn, Bitcoin officially does not havespecific marketing team. Nobody speaks for Bitcoin because it is truly a decentralized network. Nothing else can say the same about itself. All others are at best a "decentralized theater."

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Of course, some crypto investors admit thattheir cryptocurrency is a complete joke like Dogecoin, and they just want to ride the hype to sell it for a certain amount of bitcoins or dollars. But, most people who try to play this game end up losing because they are trading against AI algorithms or they get greedy thinking that their shitcoin will continue to rise in value, believing in the marketing ploy of people who prey on newbies.

So many people, myself included, are deceived into thinking that all of this could indeed be due to fast and cheap transactions or smart contracts!

It's all wrong and wrong.It is a decentralized, secure form of money that is incorruptible and censorship resistant. It's about a system of rules, not a system of governance. Bitcoin cannot be compared to any other pseudo-decentralized coin.

* Even if we only talk about fast and cheap transactions, Bitcoin still wins. Watch the tweet below.

** If you see someone claiming thatBitcoin is too expensive to transact and they don't mention the Lightning Network - again, they are either incredibly ignorant or dishonest. Know how to spot charlatans trying to slander Bitcoin in order to sell you their Shitcoins.

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*** Watch the tweet below to find out how most bitcoiners are born.

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El Salvador recently signed a law announcingBitcoin is legal tender. More countries will follow over time once they see all the positive externalities associated with Bitcoin adoption.

Note that countries do not just accept cryptocurrencies as legal tender, but Bitcoin.

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Don't buy any "leftist" crypto and don't miss the real money revolution. Don't miss the forest for the trees.

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The real competition for Bitcoin is fiat money and central banks.

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“The two pillars of Bitcoin's value proposition are: First, you can secure and transport your wealth without anyone's permission. Second, your wealth cannot be humiliated. "

- Vijay Boyapti

“Many people do not understand Bitcoin because theydo not understand what money is. Once you understand the essence of money, its history, the system behind it, and its shortcomings, Bitcoin will make perfect sense. "

- Justin Harper

Fiat currencies like the dollar area good medium of exchange, but they are also a terrible storehouse for value. They are designed to lose their value over time due to inflation, and if you really believe real inflation is equal to this target of ~ 2% per year based on CPI, well then I have for you interesting information.

Inflation manifests itself in many ways, such asthere is asset inflation, and one of the latest ways is to increase the price of a basket of consumer goods and services that are selected (and removed) by government officials seeking to hide real inflation in any way possible.

Good money should be a reliable store of value and an accessible medium of exchange.

Gold has been the best form of money throughoutmillennia, because it had the most powerful monetary characteristics compared to anything else available in this world. The free market chose it precisely because of these characteristics.

It is well understood by everyone that for the extraction of gold fromland requires real resources, i.e. energy. But fiat, the receipt of which is practically unlimited, has almost zero production costs. And when a few people who control the decisions of central banks can decide to print trillions of dollars, roughly speaking, at the push of a button - that kind of money cannot be considered reliable.

But, gold failed as money inmainly due to its physical nature. Gold is difficult to deal with, difficult to verify for authenticity, and difficult to secure on your own. These shortcomings inevitably led to the centralization and control of gold by institutions and governments.

We now have Bitcoin that combinesthe best monetary characteristics of fiat (divisibility and transportability) and gold (scarcity and durability). Additionally, it is completely decentralized, easy to verify, easy to protect and program.

But unlike gold, Bitcoin has an absolutely limited supply of 21 million coins.

Bitcoin also gives us the strongest formcryptographically protected property rights that we have only ever had. If you think that you really own your house (even after the mortgage is paid off) - just try not to pay property tax, we'll see, then you will tell about this later.

Likewise, your bank account can be frozen in an instant by the tax office or by a judge who finds a reason to do so.

No one can take your bitcoins away from you, and no one can stop you from using the bitcoin network as a whole. This is an incredibly powerful thing, however, for some reason, many people consider it quite commonplace.

If you think bitcoins cannot bemoney, because now their rate is too volatile, I will assume that you should reduce your momentary desires and understand that such an event happens once in a millennium. We are now seeing Bitcoin turn from scratch into world money. This is a ten-year process that has just begun.

Yes, it will be unstable on the way up.Volatility is the price you pay for an asset that continues to grow exponentially over time. When the other 99% of the world's population adopts Bitcoin, the volatility will be much less, but it also means that the upside potential will also be much less.

Unfortunately, most people do not spend time learning about Bitcoin because of this very volatility or false information (FUD) that they have been led to believe.

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It's much easier to just brush off Bitcoin asfrom some Ponzi scheme, than actually wasting the time and finding out why this "magic internet money" seems to keep coming back from the dead, when so many were convinced that this bubble would burst forever.

Then maybe Bitcoin is not a bubble.Perhaps a corrupt financial system that privatizes profits and delegates losses is a real bubble, and Bitcoin is just an analogue of a pin that will allow you to open this system and see it as it really is.

Over the past 12 years, Bitcoin has continuedwork non-stop, producing a block every ~ 10 minutes, even in spite of all the lies that the mainstream media, cantilloners and bureaucrats are trying to impose. Bitcoin doesn't care what anyone thinks of it - it's just open source software (FOSS).

At the time of this writing - hetraded at ~ $ 50,000 per bitcoin, the same as 10 years ago at ~ $ 5 dollars per bitcoin. The only difference now lies in how many people value it and how expensive it is.

Some people still find it difficult to understand whyBitcoin has any value at all due to its purely digital nature. That's right, because they can't touch it, as they can touch a dollar bill or a gold coin, but if you keep the concept of money to a minimum, then money is just a system of accounting for who has how much. This is exactly what Bitcoin is - it is a trusted distributed ledger.

Unlike the dollar and any other fiata currency that is controlled by only a few in power - no individual, legal entity or government can control Bitcoin. It is a completely sovereign system, and [in the physical world] there is nothing like her.

When central banks create money out of thin air, they implicitly steal from every person a part of the funds who work for this money or keep any part of their wealth in this money.

Inflation is a hidden tax thatdisproportionately affects the lower and middle classes, which, in fact, do not own those assets that are becoming more expensive due to inflation. Instead, they gradually lose all hope of owning these ever-increasing assets, while their real wages continue to decline in relation to the growth of the money supply. It is worth noting that the US Central Bank has printed 75% of all existing dollars in just the last 12 years.

In contrast, the upper class, on the contrary,profits from the endless process of creating new money, since at first they have access to this money (aka the Cantillon Effect) at rates of about 0%. Then they use this “free money” to buy even more assets (real estate, stocks), which are constantly increasing in value compared to the constantly falling dollar.

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Compare this to the majorityAmericans who do not own assets and instead use the dollar as their primary form of savings. So many cannot even get a loan, and instead are forced to accumulate credit card debt at an interest rate of 25%, which most can never get rid of.

Our entire financial system is built on debt.A minority of the upper class benefit greatly from this debt-based system, while the rest are often in debt slavery for the rest of their lives. This is by far the biggest reason for the huge financial inequality in our modern society.

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But, for example, US citizens, in fact,very lucky. They have a relatively stable government and a monetary system that steals from their citizens in moderation. In turn, the situation is much worse in many parts of the world. Currently, the lives of people in Argentina, Venezuela, Turkey, Zimbabwe and Lebanon are directly affected by their hyperinflationary currencies.

Citizens of these countries lost their savingssolely due to corruption and / or incompetence of their governments and central banks. These people cannot store their wealth in real estate or ETFs - for them it is a luxury that they do not have.

But, Bitcoin provides anyone in the worldbasic human right to economic self-preservation. This allows people to receive help that their corrupt governments cannot deprive them of. In general, as long as you own your keys, no one can get hold of your bitcoins. This is something that many critics in the West must take for granted when they ask what the whole purpose of creating Bitcoin was.

Basically, the process of sinking into a rabbit holeBitcoin makes you wonder about what money is and how the financial system actually works. And once you go deep enough, there is no turning back. It will make you question things that you never thought of before. This is why I am so passionate about Bitcoin. You probably haven't heard someone say how he plunged down the rabbit hole regarding Tesla's company or went down the rabbit hole studying the features of the S&P 500. In general, Bitcoin is much more than just another investment opportunity.

And although Bitcoin may seem prettydifficult when you start digging deeper than the surface level, but, nevertheless, it is a fairly simple choice: some money has a finite and easily verifiable money supply that cannot be devalued, while other money has an infinite supply that can be easily devalued by several powers that be. when they want it. Which of this money would you rather keep in the long run?

I think that in a world of endless printing of paper money, which steals from everyone and brings disproportionate benefits to the rich, more and more people are beginning to understand the value of Bitcoin.

Unfortunately, newbies often look at the currentthe value of bitcoins in dollars and believe that they have already missed their train because the price seems too high, so instead they decide to buy another "shitcoin.xyz", because it seems cheap compared to bitcoins, and who knows - "maybe is my shitcoin the next bitcoin ?! "

It's just that these people do not yet realize that how moneyassets and networks compete with each other and, ultimately, everything comes to only one option. The only "next Bitcoin" is Bitcoin itself.

COMPARISON TABLE

Fiat Bitcoin All other cryptocurrencies
Store of value The situation ranges from bad to downright disastrous worldwide and throughout history. Impeccable. The limit of 21 million coins ensures that your stake as a whole cannot be changed The situation ranges from bad to downright disastrous. A copy of the fiat system, which is simply run by different people
Medium of exchange The situation is getting more complicated, the number of rules is growing Full resistance to censorship. No one can stop Bitcoin payment and it can be carried out from anywhere and anytime. Good. Much better than fiat and in this sense matches Bitcoin
Accounting unit Useful for measuring the commodity-money balance in the first world countries, but to be honest, we don't have exact numbers anyway. Ideally. While we may not yet be measuring commodities in bitcoins or satoshi - we know exactly how many bitcoins we have. Complete disaster. There is no guarantee of deliveries or accurate information in general. In general, they are too volatile to be used for anything other than gambling.
Fungibility (if all tokens are the same) Various around the world All bitcoins are the same Within one coin
On average, most currencies are divided into 100 units, i.e. 1 dollar = 100 cents Perfectly divisible into 100 million units and further if required In general, yes
Recognition (what is it?) Fine Bitcoin is Bitcoin Shitcoin is Shitcoin
Uniformity Fine Ideally Ideally
Portability Fine Bitcoin is information. You can carry billions in your memory Other cryptocurrencies are also information. Thus, you can also store it in memory.
Deficit Complete disaster. More money was created out of thin air in 2020 than in the past century The rarest form of money known to man. We have never had a completely fixed supply of money or assets like this Zero. Much worse than even fiat, because it obeys not external constraints and balances, but the whims of the network owners.

Most people also don't realize how muchBitcoin still has a lot of upside potential. It is estimated that only ~ 100 million people worldwide own bitcoin, and far fewer who really understand what they own at all. In turn, global wealth continues to seek long-term storage for its value as nation states continue to devalue their currencies at record rates.

Reserve TAM (Total Addressable Market) and SoV(Store of Value) is around $ 900 trillion and Bitcoin's current total market capitalization is less than $ 1 trillion. If Bitcoin absorbs at least 10% of this amount, one coin will be worth approximately $ 5,000,000 million (estimated for 2021). Also, keep in mind that the rate is calculated on a margin basis, as not every bitcoin is listed for sale. Thus, $ 100 trillion does not need to be transferred to Bitcoin for its market capitalization to reach $ 100 trillion.

[Note. translator.TAM (Total Addressable Market) - the total volume of the target market; SoV (Store of Value) is a store of value as a liquid asset with value and which is well stored for a long time for subsequent exchange for goods, services or other assets]

In other words, instead of tryingPricing Bitcoin based on its current dollar value - you should try to rate it by the real likelihood that it will continue to win worldwide recognition as a leading SOV, thereby absorbing more and more percent of TAM. And when you look at Bitcoin through that lens, you might realize that it is actually not that expensive and not that expensive.

It's worth remembering that you don't have to buy the whole bitcoin. You can buy $ 10 worth of bitcoins and still make a profit.

Obviously, significant growth will not occur inovernight, but technology and networks are growing exponentially. The global adoption of Bitcoin will continue over the next several decades. By then, you won't need to sell your bitcoins for dollars - you can just use it as money wherever you go. Basically, you can already use bitcoins as money in many places, but most choose not to because they see the future financial potential of this money network.

Monetary assets are in constant competition with each otherfriend, and, ultimately, one of them is superior to all the others. Bitcoin will always outperform any other cryptocurrency, tradable metal and fiat currency due to its near-perfect monetary characteristics, network effect, and most importantly, its robust monetary policy.

All this "cryptomania" that is on everyone's lips -just noise. The invention of Bitcoin for the first time in history created a real digital scarcity and allowed decentralized, reliable money, but at the same time, Bitcoin is open source software, so anyone can easily copy it and create their own cryptocurrency. However, it will not be able to copy the Bitcoin network itself, which is what makes this asset so valuable.

If you hear someone say that Bitcoinis not scarce because there are thousands of other cryptocurrencies out there - you should discredit his words immediately because he just doesn't understand how Bitcoin works yet.

To weed out all this noise - you can take fora concrete example of the physical and financial infrastructure that is being built around Bitcoin throughout the United States and around the world. In particular, 98% of all the energy used to protect blockchain systems goes to the protection of Bitcoin. Once again - 98% versus 2% for every other cryptocurrency combined. Follow the energy, everything has always been associated with it.

People who understand very little about Bitcoin lovesay that he is wasting energy. Yes, if you don’t understand why Bitcoin has value, then of course, in the first place, you will think that it is wasting energy.

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Say - "Yes, Sam, but we need tumble dryers!" I agree and think that even more we need honest and reliable money.

This 30-minute documentary is the best content for everyone (regardless of their current level of understanding) about the relationship between Bitcoin and energy.

[WATCH WITH TRANSLATED SUBTITLES]

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Such corporations whose shares are publicly tradedaccess, for example, Tesla and Microstrategy are just starting to place bitcoins on their balances. JPMorgan, Morgan Stanley and Goldman Sachs are just starting to offer bitcoin funds to their clients. That being said, they don't invest billions of dollars in shitcoins.

And this is just the tip of the iceberg of all capital,which will start coming to Bitcoin in the coming years. Bitcoin reached these heights with little or no involvement from corporations, financial institutions, insurance funds, pension funds, endowment funds, and sovereign wealth funds, despite the uncertainty of regulation and custodial decisions. They now have that regulatory clarity and storage solutions available. I wonder what will happen next ...

I don't want anyone to think that I am 100%I'm sure Bitcoin will work the same way in the future, because you can never be 100% sure of anything. The so-called can always come. "Black Swan", a destructive event that is unpredictable by definition. In general, if a meteorite hits the ground and destroys most of the planet, then of course Bitcoin could fail.

If you are worried about Bitcoin, only becausewhat do you think the government will ban it - you have not paid close enough attention to this issue. Our government accepts Bitcoin, trying to regulate it as best they can, because they know that, in fact, they cannot ban it. Bitcoin is pretty tightly regulated in the US, and in general, the regulation is fine. This allows corporations and financial institutions to feel comfortable owning the asset.

Bitcoin is gradually being introduced into society,as the network is inevitably monetized from zero to hundreds of trillion dollars. We will continue to observe cycles of exponential growth in its dollar value, which will invariably be followed by large drawdowns. People who are convinced of what they own will hold onto bitcoins throughout this and will be rewarded for that belief.

Some people think that owning bitcoin is too risky, and I think it is much more risky to continue to ignore it in the modern world.

Author: someone "Sam"

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