We saw the worst economic downturn since the Great Depression last year, but we’re now seeing the first real signs that the global financial system is shifting to fast-growing markets.
To truly comprehend cryptography, we must begin at the beginning. In an October 2008 whitepaper, a person only identified as “invented.” Satoshi Nakamoto created Bitcoin (an electronic version that uses cryptography to verify transactions) on January 3, 2009, with the help of a crypto mailing list. Its one-of-a-kind identifier was its peer-to-peer system, which was uncontrollable by any government or individual.
Bitcoin was not the first attempt to develop electronic money; Hashcash and Digicash were two projects before Bitcoin. However, they did not solve the “double-spend” problem, which occurs when people spend the same amount of money twice. Bitcoin’s solution was to create the, which is a permanent time-stamped ledger. Because the transaction history of each Bitcoin is publicly visible on the Bitcoin blockchain network, each coin is unique and traceable.
Decentralized record-keeping means no single group has control, giving the power to transform the world’s financial institutions and businesses, resulting in more secure transactions and decentralized money.
Bitcoin explained in detail (simply)
In most cases, when you buy a digital product, you get an ‘unlimited’ supply (for example, when you buy a movie, song, or game online, the company can sell as many copies as they want.) Because Bitcoin is based on blockchain technology, each Bitcoin can only be held by one person at a time; it is the first digital asset with a finite supply, making it the first digital asset. Each Bitcoin is intrinsically valuable because it cannot be replicated, allowing a digital asset to take on astronomical value, much like a Van Gogh is valuable because it is one of a kind, and copies of it are worth nearly nothing, especially digital copies. It is the most similar to digital gold, which is valuable due to its limited supply and ability to be transferred. Bitcoin has a limited supply and is even easier to transfer and store than traditional currencies.
In the digital world, this technology allows you to trust someone. They can send you data, documents, payments, and much more, all of which are 100% verified by the technology that allows Bitcoin to exist (this is called ). Blockchain technology creates a network in which everyone in the network constantly verifies and secures every transaction; this is the revolution; everyone using the network ensures security and trust. This opens the door to decentralized insurance, social media, video platforms, and other services where no single company holds the profits or controls the ecosystem. Instead, users can control the ecosystem in an open, transparent, and trusted manner. This means that you can have a video platform where user privacy is guaranteed, a bank where users can be sure they’re getting the best deal on savings accounts or investments, an insurance company with no overhead, and so much more.
Should you put money into Bitcoin?
This is the first digital way to take the power of printing money and controlling currencies away from governments, and it comes at a perfect time when so many governments are printing endless amounts of money and artificially propping up equities—transparent and immutable digital assets. When you deposit a US dollar in a bank savings account, for example, you have no idea where it goes, and you only get 0.25-the Federal Reserve and the government control 1.25 percent interest at best, and the US dollar. Suppose you deposit Bitcoin into a decentralized lending platform. In that case, you can track where it goes and what happens to it, earn 3-12 percent returns (there are no salespeople, no marketing, no stock dividends, and no profit gouging because everything is transparent and verifiable), and even have control over future products and upgrades to the lending platform. Also, no one has control over the Bitcoin you put on that platform, and you know what its monetary policy will be in perpetuity.
When comparing Bitcoin to gold, we can see that both are scarce assets that are used to protect against equities and currencies. Bitcoin is being used as a hedge by Grayscale, Square, Paul Tudor Jones, Fidelity, and many other large investors. Bitcoin is superior to gold in several ways: it is more easily transferred, stored, has an immutable and transparent monetary policy (supply increases are predetermined and cannot be changed), is designed for a digital world, and is borderless. However, Bitcoin’s market capitalization is 96 percent lower than gold’s (roughly $9 trillion for gold vs. $300 billion for Bitcoin), implying that Bitcoin and the rest of the digital asset space have a high ceiling for catching up to traditional rivals.
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Transparency is provided by a blockchain.
Bitcoin and blockchain technologies have been labeled as being used for malicious activities and “for criminals” due to this decentralized system. This narrative is starting to shift, but Blockchain is still a young technology. Blockchain tokens and companies founded by anonymous founders solely to defraud users have been a problem. We want to change this narrative by demonstrating that small businesses can get off to a more transparent and sustainable start.
I co-founded xBTC, a transparent project that demonstrates how people can build long-term and legitimate businesses in the new blockchain space. These are the projects that will define digital assets and help them become more mainstream. They will develop products that are quick to develop and take advantage of the Blockchain’s technological advantages while being trusted and used by millions. xBTC and other projects are pioneering new technologies and ideas while remaining transparent and open. This allows digital assets to grow, resulting in a more promising future for the entire industry. The stories of digital assets being used for illegal activities and abuse are created and perpetuated by numerous scams and anonymous founders.
Digital assets enable technology and startup democratization and decentralization. Anyone can quickly and easily start a new technology and business from scratch. Many entrepreneurs and projects have taken advantage of the system by fabricating websites, products, and business plans. They then receive tens of thousands, if not millions, of dollars in donations from users worldwide. They can run away with the funds raised and leave the project behind with no recourse for users by remaining anonymous and doing everything digitally.
How to Purchase Bitcoin
The most convenient way to purchase digital assets is through large brokerages such as Coinbase or Gemini.
Governments are beginning to regulate digital assets officially, and major financial players are entering the space, indicating that Bitcoin and other cryptocurrencies have a bright future. Recently, France passed clearer crypto regulations, Microstrategy took over $500 million in convertible notes to buy Bitcoin, and MassMutual purchased $100 million in Bitcoin. Greyscale Investment Fund purchased over 1,000 Bitcoins and 100,000 Ethereum in less than a day. This was only a week’s worth of news. Large institutions and players are only now beginning to enter the space, which will only add to the capital and legitimacy of digital assets. Because more traditional players and governments are venturing into space, it is becoming more accepted and trusted. We are still in the early stages of growth for a nascent and world-changing technology, and the entire digital asset space, like Bitcoin, has a combined market cap of fewer than 500 billion dollars. At xBTC, we believe that as digital assets revolutionize banking, insurance, gaming, social networks, consumer goods, and more, they will begin to overtake Bitcoin. We make it simple to buy and speculate on Bitcoin dominance. Bitcoin is just the tip of the iceberg in terms of digital assets; there are many other innovative assets available. We believe that Bitcoin Dominance will be a key indicator of the future.
Bitcoin has led the way and will continue to change the world. Still, blockchain technologies will bring assets, currencies, savings accounts, insurance coverage, and so much more to billions of people all over the world in a decentralized manner.