When I first learned about bitcoin a few years ago, I felt I’d arrived a little late to the party. In hindsight, it’s clear that I was completely and utterly incorrect. I was utterly clueless, much like Jon Snow. The majority of the price movement, technical progress, and geopolitical ramifications were still ahead of me when I arrived.
Moreover, as the years have passed, I think that this is even more true now. After years of studying Bitcoin and its impact on the globe, one thing becomes abundantly clear: Bitcoin cannot thrive in a piecemeal or incomplete manner. As Satoshi predicted, it’s a case of all or nothing.
The development of the global monetary system or its irrelevance and before we move ahead, we would want you to register yourself on the Immediate Edge app as there is no platform that can help you in trading like bitcoin up trading system.
What is the reason behind this? Bitcoin is money that has emerged in a bottom-up manner to compete with fiat money that has emerged from the top-down. Society requires money to facilitate the exchange of goods and services while also preserving the value produced for future use.
Money, in economic terms, performs two functions: it acts as a medium of trade and as a store of value. As a means of trade (particularly in the Western world), fiat money is now very effective; but, as a store of value, it has been steadily less effective over the years.
Because fiat money has failed, individuals turn to alternative assets to serve as a store of value, such as stocks or real estate, to make up for the shortfall. As a result, Bitcoin competes with other financial tools. Comparatively speaking, bitcoin does not lie under any specific jurisdiction (as opposed to stocks, bonds, derivatives, or real estate), and it does not need the services of a third party for safekeeping, as do other forms of the store of value like cash (such as gold, diamonds or expensive art).
These two characteristics are often ignored, even though they are just as essential (if not more so) than the consistent monetary policy that resulted in the 21 million final supply.
The Bitcoin Generation Explained
The first bitcoin generation will be referred to as such if bitcoin succeeds in becoming the worldwide sound money that the world so desperately needs. No matter whether you participated in the Mt. Gox gambling frenzy, saw the blocksize battles, or lived through the big Chinese hash rate migration, you will be eligible. Now, I realize that this sounds like I’ve just consumed a large amount of opium, but bear with me for a while. Bitcoin is now operating at a fraction of its potential.
Currently, The Standings Are As Follows:
- Bitcoin’s market capitalization is equivalent to 7% of gold’s market capitalization. However, although gold has a significant Lindy effect to its advantage, it cannot be teleported to the opposite side of the globe in a blink of an eye, as is possible with satellites via the Lightning Network. For gold to operate effectively, it requires trustworthy intermediaries. Long-term, Bitcoin outperforms gold in terms of value.
- The game theory, in this case, is straightforward: the twentieth century was the era of dollarization, and the twenty-first century will be the period of bituminization.
- Everything that has to do with bitcoin’s geopolitical role is still ahead of us. It’s impossible to be prepared for what’s ahead, in the words of the great Jack Mallers: “There’s no fucking way you’re ready.” Take out your beef jerky and place your sats in the coldest part of your refrigerator.
- The Lightning Network is mostly unknown to the general public. How often have you heard the disinformation that Bitcoin cannot scale beyond four transactions per second? At this very moment, lightning is in action.
- Many people are unaware that bitcoin may be divided into 100,000,000 pieces, often known as Satoshi’s or Sats. Many people are drawn into ShitCoins by the unit bias, thinking they have discovered more inexpensive alternatives to bitcoin. You can still buy hundreds of Sats for a dollar, which is a meager price in this day and age.
- Large investors are just beginning to see that there is a serious problem with bonds, stocks, and perhaps the money itself and that they must take action. They are, nevertheless, beginning to awaken.
- So yet, only one company has launched a speculative assault on the US dollar, and it is a little one. The ability to leverage fiat’s monetary policy against itself will become more popular as more people learn how to do so.
Even though short-term price movement appeals to gamblers, it is mostly insignificant in the big scheme of things. No matter if the price is $3,000, $30,000, or $300,000, it is still a good investment.
No fiat price tag is necessary because fiat money will be irrelevant in the long run. Because bitcoin is currently denominated in fiat currency, it is yet too early to declare bitcoin as the universal unit of account, which implies it has not yet achieved this status.