I had arrived 5 minutes early. I sat down on one of the three blue chairs in the waiting room. The waiting room is a lot to say, it was actually the hall of an improvised studio in a dentist's office. Years ago I also lived in an identical house, only 6 floors higher.
On the wall separating the so-called waiting room and the dentist's workspace was a small television showing news and commercials. Nothing interesting, so I stared at the phone. I was writing down in my budgeting app how much money I took out from the ATM to pay for the new table. I was annoyed that I had to withdraw money three times, because some banks have the impression that they know better how much money I need and won't let me withdraw as much as I want. To top it off, I had already used up the card's free withdrawals, so I paid fees for all three transactions.
In the meantime, I hear: "Virtual currency charity is exploding"
I thought it was about the FTX scandal so I looked up at the TV and listened to the news. Nothing was mentioned in addition to what I already knew, but to myself I was happy because there is news about cryptocurrencies. Too bad the news is bad. And it's a shame that those who prepare the news for TV have no idea what they're talking about and just regurgitate what others have said.
If you don't know what happened to FTX, well, it's the biggest crypto scandal of the year. The second largest cryptocurrency exchange went bankrupt. Not because the world economy is in shambles, inflation has risen and cryptocurrencies have devalued, but because of greed, irresponsibility and illegal activities. The cryptocurrency created by FTX, namely FTT, has no value anymore. At the same time, a hole of more than 10 billion dollars left investors with empty pockets. Those who did not withdraw their money from the platform in time lost everything they accumulated there.
The conversation between doctor and patient could be heard from behind the partition screen. I got up from my chair and walked over to the TV. I took a picture so you'll believe me. People talking about cryptocurrencies on TV are so clueless that they show on the screen how much USD Coin has risen in the last 7 days: 0.06%! Well normal, just a stable cryptocurrency. Its price is always around $1. It does not generate profit, it is not relevant.
Meanwhile, a domestic financial expert, specially invited to debate the situation, also appeared on the screen. He said two or three good things, like the cryptocurrency market is very volatile and full of speculation. But when he started talking about the real value of Bitcoin, it was obvious that he didn't know what he was talking about. Obvious to me, but unfortunately most of those who follow this news are misinformed. Then they develop erroneous opinions and beliefs that reflect on how they invest.
I was listening in disappointment, with regret, because Bitcoin does not have a better representation in the media.
The patient left and I was invited from behind the screen. I lay down on the chair and quietly wait for my fingers to enter my mouth. The doctor was spinning like a puppeteer around the cabinet and rummaging through every drawer, every pocket.
"Can you wait 15 minutes for me to go home?" He asked me after he realized what he had done. He was sitting on the 'balcony' of the studio, with a satchel in his hand.
Still lying comfortably in the chair, I raised my head just a little and asked him, "Shall we?"
"I forgot my crown at home. If you can wait, I'll be right back."
I looked at the large clock on the wall to my left. It was 4:05. I wasn't in a hurry, I just wanted to see 15 minutes on the clock. Is he really coming back in 15 minutes, or is that what he says...?
"Okay, I'm waiting, what am I going to do..."
So I had time to think about the news from earlier. When I first got into the cryptocurrency market, it was a similar time. In August 2018, Bitcoin was worth about 6000 dollars, but in just a few months it was selling for 3000. We were just learning about cryptocurrencies then, and I didn't have enough experience, confidence and courage to invest more.
I've made enough mistakes in the meantime to understand what Bitcoin is really worth and why it shouldn't be confused with the rest of the cryptocurrency market. Bitcoin is not crypto.
Bitcoin Dominance
Although there are more than 20,000 shitcoins, Bitcoin represents 37% of the entire monetary value of virtual currencies. Of all the money invested in cryptocurrencies, 37% is invested in Bitcoin. 16.8% in Ethereum and the rest in the other thousands of projects. In past years, Bitcoin's dominance was over 60%. Meanwhile, cryptocurrencies became more and more popular and more and more speculators and 'wanna-be' investors started to throw money. Maybe, maybe someone gets rich.
Like taxi drivers moving to Uber and Bolt, horse and puppy bettors have started pouring money into XRP, Dogecoin, ShibaInu. "Bitcoin is too expensive, I'd better buy a cheap coin that's worth a few cents and I'll make a million dollars..." (Spoiler: that's not how it's done)
And now, at the end of the Bear Market, you can see which projects are serious, fulfill what they promised and continue their activity, regardless of the price. LUNA, FTX, Celsius, BlockFi and all those that have fallen before are proof of bad management, greed and manipulation of the gullible, those who hope to get rich with minimal efforts. I admit, I too was fooled by both LUNA and FTX. Who would have thought that the second largest crypto exchange in the world would collapse overnight?
Why did all these projects collapse? Because they had a greedy, a liar, a bigot in charge. One person, one team, who decide the fate of the project and the money invested. What is the only project that works autonomously, without a boss, without a team, without a financial entity? Bitcoin.
Sure, Bitcoin can suffer the impact of the world economy. But it is a free market. The fiat value of Bitcoin is determined only by supply and demand. Those who sell and those who buy.
In the case of the other projects, however, someone decides. It decides who is censored, what is allowed, where the money goes, who has access, hidden doors are installed for 'extreme cases'. And he's lying. They lie hard, just to invest, with the hope that we will reach financial freedom faster.
Investing in Bitcoin or other cryptocurrency is not the same.
The local expert who was invited on TV for the news I was telling you about earlier, had the following counter arguments against Bitcoin:
ParaphrasingBitcoin is said to have value because it is in limited quantity. But not everything that is in limited quantity is automatically valuable
That's right, not everything in limited quantity has value. But Bitcoin's value doesn't just come from the fact that it exists in limited quantity. The fact that there are only 21,000,000 Bitcoins on paper, of which less than 19,000,000 will ever be accessible, causes the value to increase over time. It prevents devaluation due to inflation, as happens with fiat money. As more people understand the true value of Bitcoin, the price will explode as demand increases because the supply remains the same, predictably.
So Bitcoin has no value because it is in limited quantity. This amplifies its value.
I'm paraphrasingBitcoin transactions are cheap. But what do you think? That the banks won't do anything about it? Rest assured that banks will adopt blockchain transactions
That's right, banks are already on the way to implementing blockchain transactions. You're probably enjoying free banking right now, but if you're sending money outside of Europe you'll find that a transfer costs at least $20. And for very large amounts, other commissions appear.
Although banking transactions may become cheaper with the help of blockchain, fiat money will turn into CBDC (central bank digital currency) which is not necessarily a good thing. Banks and governments already control money as they please. By turning money into digital currencies, it becomes programmable. That is, they gain even more control over your money, and you have less and less. There will be no more cash, so the authorities will always know how much money you have, where you have it, with full access to it. They will be able to schedule your money to expire.
Cash will probably disappear anyway. The problem is, in whose hands is the control of your money and wealth.
In the case of Bitcon, transactions are cheap because there are no middlemen reaching into your pocket to take their cut. Transactions are made from person to person, and the only 'fee' you pay is to those who automatically make the transaction: the miners. Everything is transparent, with the minimum necessary cost. Efficient.
Is this an indicator of value? Of course! Does Bitcoin's value lie in this aspect alone? Of course not!
And why are you talking about Bitcoin 'lacking' value in the FTX scandal, man? Bitcoin is not crypto!
The real value of Bitcoin
The current monetary system, all that is fiat money and the institutions that govern it, is diabolical. The main suffering of people everywhere is related to either money, work, stress, poverty or quality of life.
Bitcoin solves this problem. It separates money from the State and takes power out of the hands of banks and politicians. Bitcoin is created in such a way that it can be used for centuries, being resistant to all kinds of attacks. There is no single entity or group of people that controls Bitcoin. Bitcoin's monetary policy cannot be changed easily.
All other cryptocurrencies are an attack on Bitcoin because they distract people from the main goal: replacing the fiat monetary system. Ostensibly, these shitcoins want to be a better version of Bitcoin. According to their marketing messages, Bitcoin uses outdated technology, is too slow, is either not useful enough, or is bad for the environment. Unfortunately, these narratives are slowing Bitcoin adoption.
Most cryptocurrencies are:
- Spikes that were created to enrich the creator
- Centralized, with rules that can be easily changed (never in your best interest)
- They are useless and don't solve real problems
- Used exclusively for trading as a means to earn more fiat money
The whole cryptocurrency market is full of spikes and empty promises.
Bitcoin solves a problem people have had for millennia: good money that can't be diluted and manipulated by anyone. This is the true value of Bitcoin and therefore cannot be replaced.
Good money meets the following 5 main criteria:
- are easily divisible (five money, ten money, half, 25 money
- they are portable, easy to carry
- there is a limited amount
- they are durable, hard to destroy
- they have social acceptance, they are recognized and accepted by all people
Bitcoin meets all these criteria. Even gold does not fulfill them all, although it has been mankind's most suitable solution until today. Fiat money is a bad joke.
I haven't seen the real value of Bitcoin being debated on TV. Why?
Bitcoin can be used by anyone , without obstacles or barriers of any kind. Regardless of age, gender, religion, race, ethnicity, domicile, anyone can use Bitcoin. You can't say the same about bank accounts.
When you use Bitcoin, no one asks you how much you have, where you got it, or what you plan to do with your Bitcoin. Send and receive money with no questions asked, no limits, no censorship.
Your Bitcoin account cannot be blocked, it cannot be accessed by anyone but you. No one can take money from your account without your consent. Banks or judicial institutions can do this with your bank accounts.
Transactions on the Bitcoin network are public and transparent. Anyone can see how all 21 million Bitcoins are circulating. Nothing is hidden, nothing is 'behind'. Of course banks and governments do not want to adopt such technology.
And one extremely important thing, which makes the difference between Bitcoin and other cryptocurrencies , is that Bitcoin does not have a CEO. There is no leader or team that controls or manipulates Bitcoin. There are no ulterior motives, deception or fraud. Absolutely all other cryptocurrencies are based on fantasies, illusions and lies, because they are run by people. Nothing is what it seems.
There can be an infinite number of cryptocurrencies. There are already more than 20,000 in number and more are being created every day. Even you can create a cryptocurrency or an NFT in less than an hour. But all these cryptocurrencies do is steal the demand for Bitcoin and denigrate the reputation of the field.
If you want to invest in cryptocurrencies , because they solve the money problem, then invest in Bitcoin . The other cryptocurrencies are just a vehicle to accumulate satoshi. The majority of your portfolio should be in Bitcoin and thus you are protected from both spikes and bear markets. You can sleep peacefully at night.
There is no guarantee that Bitcoin will win. There are many obstacles and challenges, but Bitcoin has overcome them so far. We don't know what will come next, maybe Bitcoin will fail. But I believe we will succeed in defeating the current monetary system, and that is why I invest in and support the adoption of Bitcoin.
