Whatever your success in life, there is always a moment when you have to get back to the basics. It helps you to appreciate the important things that make you who you are and why you are improving every day.
This need to return to the fundamentals can also be extended to businesses or technology. Today, everybody thinks about Bitcoin, looking forward to the third half scheduled for May 2020.
Many people are prepared to expect the start of potential, very large bull market for Bitcoin by 2020. All these questions about Bitcoin’s current and future price would almost make you forget why Bitcoin is such an exciting revolution.
In this article, I propose a return to what you need to know about Bitcoin with 8 unchangeable facts.
Only 21 Million Bitcoins Are Available
Satoshi Nakamoto agreed when he developed the Bitcoin Blockchain to set a maximum number of bitcoins which could be generated by mining.
There are no more than 21 million Bitcoins to be found.
There are several theories as to why Satoshi Nakamoto wanted to set this limit to 21 million, but no one knows why it was picked.
We know why Satoshi Nakamoto decided to set a maximum number of Bitcoins that can be released.
Bitcoin was developed by Satoshi Nakamoto for simulation of a commodity like gold.
Bitcoin had to exist in finite quantities and over time had increasing difficulty accessing new ones.
Bitcoin Halving, every 210,000 blocks of authenticated transactions, made this second property possible. It half decreases the amount of Bitcoin that was newly created and given to miners as a reward following the validation of a block.
Bitcoin Halving is aimed at keeping inflation in the supply of Bitcoins in check.
The cap of 21 million will be hit in 2140 and the Bitcoin Blockchain will have to be protected by transaction fees from then on.
1 Bitcoin Today Will Be Equal In Future 1 Bitcoin
Western governments ‘ decades-long inflationary policies just devalue what you own over time.
After 1980, the real value of the US dollar has steadily decreased.
An American must, therefore, have 312 dollars in his hands for his purchasing power in the year 2020 to exceed his purchasing power of 100 dollars in 1980. In other words, the 2020 dollar allows you to buy less than the 1980 dollar.
It will not operate with the current monetary and financial system in the future.
On the other hand, Bitcoin gives you an easily verifiable promise: no more than 21 million Bitcoins will be published.
Through buying 1 Bitcoin today, you purchase 1 BTC in 21 million. In the future, regardless of what happens, 1 in 21 million Bitcoins will always be open to you.
And Bitcoin protects what you own better than the US dollar ever.
You Do Not Own A Bitcoin But You Own A Part Of Bitcoin Blockchain Cryptographic Keys
As a person who wants Bitcoin, you don’t have to grasp all of the Bitcoin Blockchain’s inner workings. You do, however, understand some of the fundamentals.
The following point is important: you don’t have Bitcoin when you buy it, but you own cryptographic keys to a portion of Bitcoin Blockchain.
This technological precision may seem insignificant.
It is, however, an important requirement to understand the next chapter, in which I shall clarify why you own your Bitcoins only if you have the corresponding encryption keys.
Not Your Keys, Not Your Bitcoins
Many people buy Bitcoins through leading trading platforms like Binance and Coinbase. These are points of entry for the general public, and that is not true.
What hurts is that many people are wrong to put their Bitcoins on commercial sites.
If your Bitcoins are on trading platforms, you don’t own them.
As with Mt. Gox in 2014, these trading platforms could be hacked or you can opt-out of using the bitcoins in the same way a bank does.
Today, almost 3 million Bitcoins are forever lost. Their owners lost their cryptographic keys or their bitcoins were stolen through hackers on those sites in other situations.
You should therefore also remember the following phrase: Not your keys, not your bitcoins.
Once you’ve bought your Bitcoins, it’s best to store it on a hardware wallet.
You can own and use the cryptographic keys to your Bitcoins as you want without the possibility of censorship.
There Is No One Standing Behind Bitcoin
Satoshi Nakamoto founded Bitcoin in 2009. Satoshi Nakamoto was well aware that its development could be a real revolution for everyone.
Bitcoin has no creator and belongs to all its users.
The popularity of Bitcoin is also because it has no leader and everyone can contribute.
Bitcoin is a true democracy that gives its users power back. The Bitcoin Blockchain is illegal and trustworthy.
You can now choose to access Bitcoin Core as a Bitcoin Blockchain server. Nobody’s going to be able to deter you.
If you are a developer, you can also contribute to a completely open-source Bitcoin source code.
Bitcoin is everybody’s and that makes a difference.
Bitcoin Is Backed By Math
Central bankers and politicians are in the hands of fiat currencies. The ever-increasing US Dollar cash supply is something that you can’t do while evaluating what you own.
Do you still want trust in your leaders by monetary and economic policy choices made in recent decades?
The response for me is obviously no. The same politicians would have us believe that Bitcoin is founded on nothing. They’re wrong.
Bitcoin is focused on math and people believing in the network.
The mathematical characteristics on which Bitcoin is based are commonly known and usable by anybody in the source code.
Therefore, in mathematical calculations required to secure transactions and create new Bitcoins, the fundamental value of Bitcoin is.
If you’d rather believe in politics ‘ term, Bitcoin just might not be for you.
On the other hand, you can take a closer look at Bitcoin if you want to believe something not irrational and unchangeable since it is based on mathematics.
One of the points often in the hands of the fiercest opponents of Bitcoin is that Blockchain encourages corruption by allowing dirty money to be washed.
This is a completely false statement, and the public will understand that there has been no other currency as open as Bitcoin in history.
Bitcoin is completely transparent and its Blockchain software is available to everybody.
Therefore, all transactions made since the start of Bitcoin are open to everyone, which explains why the Bitcoin Blockchain is now 300 GB in size.
As transactions are not anonymous, it is possible to identify individuals carrying out illegal activities via Bitcoin.
Back to the subject of money laundering, several 2018 studies showed that Bitcoin has a minimal risk of money laundering.
Bitcoin Is Not Stoppable
The lack of a creator made Bitcoin even more immune to government censorship worldwide. Nonetheless, nobody can be sued to avoid Bitcoin.
This can’t be stopped with Bitcoin.
Since Bitcoin was founded, Western governments have been losing their way of doing Bitcoin.
We are confronted by a question.
Many governments choose to block Bitcoin and its people ‘ cryptocurrencies.
The ban at a user level does not alter the fact that Bitcoin works well and that some users can use it roundabout.
Many governments choose to legalize it to regulate it to benefit from the financial windfall it provides in terms of taxes on capital gains.
On the other hand, there is an argument where Bitcoin would not work if the Internet was shut down.
I want to reassure you that the current financial system is the same. Therefore, it is not a Bitcoin-specific problem but applies to all distributed systems.
Also, some startups are developing solutions that allow Bitcoin to be immune to an Internet outage through the use of a special satellite communication emergency network.
With the third Bitcoin half on the horizon, all eyes on Bitcoin’s price for the next few months and years. Bitcoin’s price is an important thing, but it is just a small part of the Bitcoin movement.
I think it is interesting to go back to the fundamentals that make the Bitcoin so powerful and exciting for the future to help measure how innovative Bitcoin is.
The 8 unchanging truths about Bitcoin I just illustrated have made you more conscious of what makes Bitcoin so special and so important for the future.
Bitcoin Protects People More Than The U.s. Dollar Has Always Done
According to the United States Labor Statistics Office, current prices in 1980 are 212 percent higher than average prices. In the past 40 years, the US dollar has therefore endured average inflation of 2,96% per year.
Since 1980, the true value of the US dollar has steadily decreased.
So an American must have $312 in his hands to have his purchasing power equal to its purchasing power of $100 in 1980 in 2019:
In other words, the 2019 US dollar allows you to buy less than the 1980 US dollar.
To fully understand the loss of buying power, this second diagram shows the evolution since 1980 of $100 purchasing power: