Why one should buy Bitcoin, NOW???
Instead of answering it with tables and maths or logic, let’s grasp the concept of currency in its form, types, and its evolution. Timeline outlining the origin and history of currency, starting from the barter system and leading up to the creation of Bitcoin:
Prehistoric Times:
- Barter System (Prehistoric Era): People exchanged goods and services directly with one another, relying on a system of barter for trade. But, it failed as the longevity of some goods is more compared to others.
Ancient Civilizations:
- Commodity Money (3000 BCE): Various civilizations began using commodities with intrinsic value, such as shells, beads, and precious metals, as a medium of exchange.
- Coinage (600 BCE): The Lydians in modern-day Turkey introduced standardized coins made of electrum, a natural alloy of gold and silver, which marked the beginning of coinage.
Classical Era:
- Gold and Silver Standards (6th Century BCE — 20th Century): Many civilizations adopted gold and silver as the primary standards for currency. This system continued for centuries, with various modifications and fluctuations in the use of precious metals.
- Gold-backed currencies or other metal coins denominated to gold, became the norm rather than an exception.
Medieval Era:
- Paper Money (7th Century): The Tang Dynasty in China introduced the first paper money, called “jiaozi,” as a convenient alternative to carrying heavy coins. Paper money gradually spread to other regions.
- Bills of Exchange (14th Century): Merchants and traders began using bills of exchange, a type of financial instrument that allowed for the transfer of funds between different parties without the need for physical currency.
- Paper currencies were backed by gold.
Modern Era:
- Banknotes (17th Century): Governments and private banks began issuing paper banknotes as a representative of a certain value in precious metals, such as gold or silver. These banknotes eventually became widely accepted as a medium of exchange.
- Fiat Currency (20th Century): Fiat currency refers to money that has value solely because the government declares it to be legal tender. Many countries transitioned from the gold standard to fiat currency, allowing for more flexible monetary policies.
- In 1971, the US officially ended the convertibility of the US dollar into gold, known as the “Nixon shock,” which marked a significant shift away from the gold standard. Since then, the US dollar has been a fiat currency, not directly backed by a physical commodity like gold but by the GDP of the nation.
- Electronic Money (20th Century): The advent of computers and digital technology enabled the development of electronic money systems, such as electronic fund transfers, online banking, and credit cards.
- More on this and why most electronic money failed- https://krishnenduchatterjee.medium.com/is-bitcoin-a-fad-or-investment-worthy-asset-class-d00e784c96c1
Blockchain Era:
- Cryptocurrencies (2009): Bitcoin, created by an anonymous person or group using the pseudonym Satoshi Nakamoto, was introduced as the first decentralized cryptocurrency. Bitcoin operates on a technology called blockchain, which enables secure and transparent transactions without the need for intermediaries.
- Expansion of Cryptocurrencies (2010s): Following the introduction of Bitcoin, numerous other cryptocurrencies, often referred to as altcoins, emerged. Some notable examples include Ethereum, Ripple, and Litecoin. These digital currencies offered various features and aimed to address different aspects of the financial system.
- Wider Adoption of Cryptocurrencies (2010s-2020s): Cryptocurrencies gained increased recognition and acceptance, with businesses and individuals using them for various purposes, including investment, online transactions, and decentralized finance (DeFi) applications.
Summary: Currently World’s fiat is basically Govt. printing money backed by future GDP requirements. Countries are literally printing paper and borrowing from the future to spend today. Few things are irreplaceable and non-inflationary, Land, Gold, and Bitcoin. Everyone must think deeply to preserve their wealth for securing their own future by diversifying in some or all of these non-inflationary assets.
What's Gold? A finite yellow shiny metal is limited in quantity and universally accepted as the global standard of exchange. It takes physical mining (manpower, equipment, and energy) to refine and security to store it. Can be redeemed easily almost everywhere.
What's Bitcoin? Finite, 21 million (rarer than Gold). Almost globally accepted as an asset but limited by its places of redemption. Has a well-documented history, unlike Gold. Created using mining via ASIC miners (manpower, equipment, and energy) and can be stored in hardware or software wallets away from the prying eyes of everyone. Both are non-inflationary assets.
So now you can at least grasp Bitcoin is more like #DigitalGold
Why NOW??? Institutional adoption in #btc has just begun…. Don’t believe me google it as well. Just sharing a list of the top 10 companies holding the most globally — https://decrypt.co/47061/public-companies-biggest-bitcoin-portfolios
