Buying Bitcoins for a good entry price is secondary to the bigger picture; Bitcoin is primarily a unique public financial technology marvel in the history of mankind. It was launched by Satoshi Nakamoto during the 2008 financial crisis with the aim of enabling the financial emancipation of humanity. After 11 years of development, we are now witnessing a unique financial paradigmatic shift that anyone in the world can participate in. In this transition, Bitcoin as a new investment object will attract more capital and subsequently gain a higher price in a volatile manner. Do you know what is the simplest way to safely accumulate bitcoins with the least possible risk?! The answer is Bitcoin casino games! You can get more information here! Bitcoin games are based on luck and require a small number of skills.
Since 2009, Bitcoin has slowly developed organically and only developed its own price and capital market relatively late. This development is associated with a slowly growing community of brilliant developers, whiz kids, cypherpunks, innovators, idealists and users. These have succeeded in realizing a magical internet money project that was deemed impossible.
Bitcoin was worth nothing and had no exchange rate for years as the project seemed doomed to fail. In its early years, the bitcoin project seemed to end in failure, but it managed to overcome every setback and perceived death struggle. Each victory provided more attraction, new price impulses and further growth of the network.
Bitcoin has proven to be antifragile. That’s why bitcoin is jokingly compared to the tough and fearless Honey Badger. Bitcoin is supported by a large community that, based on different ideological convictions, is working towards a better decentralized monetary system and network that cannot be stopped or cracked. Bitcoin as magical internet money became stronger and more valuable due to its resilience. It now works as digital gold in an unbreakable decentralized network. How is this secure unbreakable network possible?
Based on new scientific breakthroughs in mathematics, cryptography and computer science, unbreakable designs and networks can be developed in the virtual world, which is not possible in the physical world. Especially when we step into the realm of modern cryptography with its use of astronomically large numbers, our intuition will leave us completely.
The functioning of Bitcoin is based on mathematical powers, algorithms and extremely large numbers that are (almost) impossible to guess.
Essential to Bitcoin’s security is the SHA-256 hashing function in Bitcoin’s Proof-of-Work consensus algorithm. This hashing function is used by specialized Bitcoin hashers (Miners) performed when checking, processing and adding transaction blocks in accounting (blockchain).
Due to the increasing participation of more and more new users, developers, start-ups and more efficient transaction SHA-256 miners, Bitcoin has acquired mutually reinforcing network effects over the years. These forces have made Bitcoin ever more secure and reliable. Bitcoin is now the most secure distributed computing transaction network mankind has ever invented.
The network effects of a decentralized computer network that is secured by a specialized Bitcoin mining sector make Bitcoin safe and therefore also reliable. Reliable in the sense that it allows Bitcoin to have a predictable, immutable monetary policy with a guaranteed absolute scarcity. In total, a maximum of 21 million bitcoins can be mined by the miners. This predictable monetary policy is pre-programmed and cannot be changed by a third party. The money supply cannot be manipulated or counterfeited by human greed. Bitcoin is reliable.
The scarcity is further increasing due to a recurring four-yearly bitcoin halving phenomenon, which means that half the number of new bitcoins can be found and sold. Many investors who see this buy bitcoin because it is scarcer than gold. Buying Bitcoins can be seen as buying absolutely scarce monetary movable goods.
The bitcoins operate as free, debt-free, inalienable digital cash in a similar way that silver and gold coins served as backed cash in the past. This backed money was the base money for the emergence of specialized money banks and the central banks.
Today we use unsecured cash (banknotes, coins) that is put into circulation by the central bank. Cash is part of the base money. Base money is also called the monetary base. It is that portion of the total money supply that is created by a monetary authority (central bank). Base money consists of cash such as coins, paper money (both cash in banks and notes circulating among the public), and the bank reserves that the banks hold with the central bank.
Bitcoin has no monetary authority. In this sense, it competes directly with the central bank’s base money (the monetary base); and ultimately the gold that central banks hold in the vault. Gold that a central bank could use to hedge the base money again in a reform of the monetary system. Gold that ended up being the original base money when we were still using backed cash (like the gold tenner).
Bitcoin is a new monetary invention and is best viewed from the current monetary point of view as a new objective, transparent and decentralized monetary money base.
It has its own three-dimensional accounting system and a programmable distributed computer transaction network based on the Bitcoin protocol. Bitcoins cannot, therefore, be confiscated or manipulated. Bitcoin transactions can therefore not be censored. Bitcoin realizes financial sovereignty and realizes a separation between the workings of sound money and the human power play (governments/ banks) over money.
Bitcoin is also an improved digital iteration of gold and the gold standard as a result. Bitcoin’s development can therefore go very far. It could act as a new objective world reserve currency within a newly reformed financial system where US Treasuries and gold will play a less prominent role.
Bitcoin will become an essential monetary component for the financial emancipation of humanity enabling a truly decentralized fourth industrial revolution and the global money market. Buying Bitcoin is an option for the realization of this possibility, whereby Bitcoin eventually sucks up the money market as a black hole and grows proportionally in market capitalization. Buy Bitcoin features an asymmetric risk-reward ratio and exceptionally high Sharpe ratio. A Bitcoin can easily cost €100,000 in the future if the network continues to grow and become stronger every year. Hence, buying Bitcoin, whether business or private, is a long-term investment. It can be considered as a call option within an upcoming monetary great reset in which the dollar, among other things, will lose its world reserve status.