Bitcoin has been gaining more and more attention in recent weeks. More and more large American companies are investing in Bitcoin with their balance sheet. This shows how much mentality around Bitcoin has evolved in 2020. Many people still believe that Bitcoin is all about making them rich. It is a mistake to reason thus, because the goal of Bitcoin is quite different as I will demonstrate to you in this article.
The King of Kings
Bitcoin is more than just a financial investment with the potential for extraordinary returns. I have written this over and over again. Yet if you look at the numbers, Bitcoin has shown tremendous performance over the past decade.
Indeed, Bitcoin made it possible to transform $ 1 invested in 2010 into $ 90K at the end of 2019.
For the few people who have kept the bitcoins they owned throughout the past decade, Bitcoin has allowed them to enjoy a performance of +9,000,000%. In the history of investing, this is unheard of.
Even the most fabulous investments in Silicon Valley startups fail to deliver such returns on investment in 10, 15, or 25 years. This is to say if the success of Bitcoin since 2010 is fabulous.
Such a success therefore necessarily makes some people think that Bitcoin is a “Get rich quick scheme“.
Bitcoin is more than just another financial investment
And yet, to think of Bitcoin in this way is the best way to avoid serious disappointment. Bitcoin is not a startup. Bitcoin has much deeper goals: it aims to build a more equitable and better world for all thanks to a system with unique monetary attributes.
The monetary attributes of Bitcoin are supported by a disruptive technology: the Blockchain. Without Bitcoin, the Blockchain is nothing revolutionary, since it is just one more data storage technology.
Many are already struggling to understand this first idea. Yet it is essential. Bitcoin without Blockchain could not exist, but Blockchain without Bitcoin has still not proven its worth.
Thus, all Altcoins that claim to replace Bitcoin with potentially superior technologies are on the wrong track. The real fight is that of monetary attributes, and in this area, the unique invention has already taken place with Bitcoin.
In the future, Bitcoin will remain, and will be improved by an exceptional community of developers. Searching for the next Bitcoin is as incongruous as searching for the next Internet : it’s a waste of time and money.
If Bitcoin is here to stay, Altcoins aren’t
Bitcoin will still be around 25 years from now. Altcoins, which are often vulgarly called Sh * tcoins, will have seen their value approach zero. It’s just a matter of time.
Some explain that their favorite Altcoin allows a greater potential return than Bitcoin in the coming months. Possible. You can also go play casino, and be lucky. You will then have a better return on investment than with Bitcoin.
I think you get the idea here: buying Altcoins for investing is like gambling. You can win, but in the long run you will always lose.
With Bitcoin, you have a lot more guarantees.
If Bitcoin should no longer be able to present a return of +9,000,000% over the next decade, however, it gives you the guarantee to protect your wealth over time in a censorship-resistant manner.
This is the great need that emerges in 2020 following the economic crisis triggered by the coronavirus pandemic. Now that the failures of the current monetary and financial system have been exposed, this need will only grow stronger in the years to come.
MicroStrategy leads the way with Bitcoin in the coming months
Like MicroStrategy, which makes Bitcoin its primary cash reserve asset by investing in it $ 425 million, more and more companies will follow this strategy.
Likewise, more and more individuals will opt for Bitcoin in the future.
Of all of these people, a majority may think of getting rich. However, this is not the real purpose of Bitcoin.. The purpose of Bitcoin is that Michael J. Saylor, the CEO of Micro Strategy, has advanced recently by explaining why he chose this strategy for his company.
Bitcoin is here to let you protect your wealth over time in a censorship-resistant way.
Bitcoin is the best hedge in the face of uncertainty in today’s world. Faced with the great monetary inflation that we are experiencing, the US dollar is increasingly risky. You cannot bet on the global reserve currency. Bitcoin is your only real option.
As inflation continues to eat away at the value of the US dollar, your Bitcoins will keep on rising in value.
Bitcoin is here to keep you from getting poorer slowly but surely over time
Whatever happens, you are guaranteed that 1 Bitcoin purchased in 2020 will always represent 1 Bitcoin in 21 million in 2050. By purchasing 38,250 BTC, Michael J. Saylor knows his company will always have 0.182% of the total Bitcoin supply.
Taking into account the fact that 4 million BTC are considered lost forever, MicroStrategy currently has 0.225% of the total Bitcoin supply.
It’s an incredible guarantee when you think that the price of Bitcoin is set to reach one million dollars within 20 to 30 years due to two major reasons:
- The law of supply and demand with a supply which will inevitably be reduced and a demand which will continue to intensify.
- The endless inflation of the US dollar.
By buying Bitcoin, you are choosing to protect what you own from the flaws of the current system.
The real purpose of Bitcoin is thus to prevent you from getting poorer over time.. Bitcoin is a savings technology that allows you to take a long-term view.
When entering the world of Bitcoin, you must therefore be aware that its revolution will take time, and that you will be there for a very large number of years. Quickly, you will even understand that becoming a Bitcoin HODLer is the best strategy to take full advantage of Bitcoin.
In time, you will come to the same conclusion as all Bitcoiners: Bitcoin HODLer one day, Bitcoin HODLer forever.
You will do the math, and you will understand that you have no interest in selling your Bitcoins for US dollars or euros. The best thing you can do is keep them as long as possible until the day the Bitcoin revolution will have been totally successful.
If this happens, then we will speak in Satoshi, and you can use your Satoshis in everyday life. Until that moment arrives, the best you can do is support the Bitcoin revolution by being a Bitcoin HODLer. This strategy will not make you rich fast, but it will prevent you from slowly and steadily getting poorer as is the case with all fiat currencies.
Trained as a developer, I discovered Bitcoin in 2014 but I did not immediately understand the importance it could have for the world of tomorrow. I took a more in-depth look at it from the start of 2017 and since then I have not let go.
Passionate about Bitcoin and the new system it is trying to build for the future, I decided to participate in its evangelization at my modest level by writing about Bitcoin, Blockchain and crypto currencies on different media.
It is with pleasure that I publish some of my texts in French on The Coin Tribune.
I also write quite a bit about personal development and self-improvement.
Do not hesitate to exchange with me via social networks or in comments on my articles if you have any questions concerning my articles.