Hi r/Bitcoin ! I have a few things to say for those newcomers who may have heard about crypto from a friend or family member and can't wrap their minds around what BTC is, whether it is safe, and what makes it valuable (even more importantly, whether it will increase in value or decrease in value).
As a mediocre investor, I asked myself the same questions. There are very simple answers to each of these concerns/fears with current-world-related scenarios to back up those answers.
1. Value
- Is paper money (fiat currency) valuable? The paper is only a contract between 2 people/entities that something is going to happen. You give a clerk a $20 and they understand that contract to give you gas in return. BTC works the exact same way. You give the salesperson 1BTC and he now has a contract to give you a car. Same as with a debit card, but far more secure (as long as you aren't stupid ...but we will talk security in a moment).
- These days, most people don't even touch paper when paying for things. We tap a phone, we slide a card, and we type numbers onto the screen from the card - sounds like digital money....sounds like BTC, right? When you log into your bank account, you're accessing the internet to see some pixels on a screen and you don't even see the paper it represents anymore. Your currency is already digital.
- Fiat, the paper, isn't valuable; The idea of the contract is where the value resides. BTC is valuable because of its purpose for trade of goods/services; just like fiat. BTC is valuable because it is decentralized. Decentralized currency, unlike fiat, benefits the consumers because it isn't a regulated, or regulatable, exchange. For example, the common person wouldn't have to worry about the government garnishing wages when paid by BTC. BTC is valuable because of its limited supply. The limited supply of BTC further increases its value because, unlike governments, only so much BTC will EVER exist. So, imagine, for a moment, that the government couldn't print any more money. The value of each dollar bill would drastically increase (basic supply and demand principles). BTC is valuable.
- But what happens if it gets stolen or worse - an apocalypse-like event takes the internet down - then what?! Easy......after an apocalyptic event, what value will your fiat $1 bill have? None. It will become fire-starter. So what's the difference?
2. Security
- In simple terms - BTC is safer than fiat in a bank. If someone steals your wallet and you had $1,000 in it, will you ever see those bills again? No. If someone steals BTC from you, will you ever see it again? No. If someone makes false charges on your debit card, will you see that money again? Yes, likely because your bank has insured your money to be safe against fraudulent charges. After a brief investigation, they will determine where the charges were made and who signed those receipts - and they will likely return the funds to your account. Great! How is BTC safer than that?! Because BTC can only be accessed by you unless you provide the means for someone else to access your funds. Simple. As long as you safeguard yourself against the phishing attempts of others, your BTC is safe. But you said safer than a BANK! Yes, because unlike a bank, BTC is operated globally and not locally. A bank chain is bound by governmental legislation. The blockchain, however, is not. It is run by every single person who uses it. The blockchain is impenetrable. Once adopted by everyone in the world as global currency, which isn't as far from becoming reality than you think, it would be impossible to "lose" it (again, unless you're stupid).
3. What is BTC?
- So, now we come to the answer we've all been waiting for; BTC is a global exchange for contracts between individuals for goods/services. It is a safer and less regulated vault for every single one of us. It is a revolution of the people against the governments and the unabashed control they have over our own money. It is the way of the future - as is the internet - and if you believe the internet knows no bounds as far as reach, value, and future impact, then you should know the same about BTC.
Finally, nothing said here is financial advice. This is my opinion. Additionally, my opinion is that if BTC is the future - then we are at the very early infancy stages of a new world currency with a limited supply. The demand is only going to grow. As of June 2023, only 81 million people own at least $1 worth of BTC. There are over 8 BILLION people on this planet. If you think $73k is the top - you are sadly mistaken. Again, this is not financial advice.
Good luck in life - peace.
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