There are many reasons to like Bitcoin and you probably already are aware of many of them. That there will only ever be 21 million Bitcoin that are created and millions have already been lost forever. There aren’t many left. You’ll likely also know about the Bitcoin halving when the issuance rate of BTC is cut in half approximately every four years. You probably have heard the bullish predictions of how high Bitcoin’s price could rise in the future. Investing in it now and HODLing could change your life financially forever. If you have fallen further down the Bitcoin rabbit hole, you may also know that it is the most decentralized and secure cryptocurrency as well.
All of those things are great and are some of the key reasons why many people decide to invest in Bitcoin. But, many of these people are missing what makes Bitcoin so special. While we are all happy about the price of BTC rising and making us wealthy. That isn’t its real purpose, and why it was created.
What makes Bitcoin so great is that it is the first known asset that humans can truly own. It’s the first asset that you can truly take to the grave if that is what you wish.
Cash and fiat are a necessity in today’s world, but they are the root of many of today’s problems as well. A large number of crimes and violence occur because of cash. If I had a lot of cash, someone could attack me and take my money. If I refused, they could murder me and take it then. As grim as it sounds, you don’t own the cash you have. You are merely in possession of it at the current moment. The can be said for gold as well.
A house is one of the most common assets people want to own. Even after you have completely paid off your loan, you still don’t actually fully own it. You just own the right to pay taxes on it and live rent-free. Just try to stop making payments on your housing taxes and see how long it takes for the government to seize your house. The same can be applied to farms, real estate, and land.
This is what makes Bitcoin so special. It is the first asset that you could truly own. As long as you took self custody, and properly stored your key passwords, then no one could seize or steal your Bitcoin. Earlier we discussed how if someone wanted your cash, they could attack you and simply take your cash after. With Bitcoin, they could attack you, but still not have access to your coins. If they would murder you, they would have no chance. It’s a situation that we don’t want to think about, but those sorts of crimes happen every day to steal money. It cannot be seized by governments and isn’t controlled by any one party. This is where it being so decentralized and secure becomes important.
While truly being able to own your Bitcoin is great, it wouldn’t have any use if you still had to rely on 3rd party services to use it. For example, you can spend cash privately if you wish, but the moment you put your money in the back you become dependent on them. If you don’t follow the rules, or if they simply choose to freeze your account. That is the moment when you learn the importance of trustlessness. With Bitcoin, you can own it, store it securely, becomes deflationary over time, and never need to rely on 3rd party services.
This is what makes governments and banks so nervous about Bitcoin. If Bitcoin adoption continues to grow, in one snap governments and banks could lose most of their power over people.
And that is something that many people in western countries overlook. We are fortunate to be living in advanced countries that are pretty well off economically for the most part. Until covid, most people in these countries likely never thought about inflation because it didn’t affect them greatly. They viewed Bitcoin as simply an investment that could make them a lot of money in the future. However, people from less fortunate countries already know why Bitcoin is special. Owning Bitcoin could prevent your life savings from disappearing overnight from inflation or being stolen by criminals. It is the only asset that you can truly own and rewards you for holding it long-term. The people who don’t fully understand why Bitcoin is special will likely learn when it is already too late.
How about you? What aspect of Bitcoin do you think is the most important?
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