Bitcoin Gives You Certainty in an Unstable World
The fundamentals of Bitcoin have remained the same for more than a decade.
The world we live in is increasingly unstable. This instability manifests itself both politically and economically. As individuals, we do not know very well what lies ahead of us in the future.
The unknown has always been part of the magic of life, but in this case, this instability is such that the unknown is gradually being transformed into certainty.
The certainty that the world of tomorrow will be worse than the world of today.
It is also the fault of a monetary and financial system that has long since ceased to protect people. Inequalities between the very rich and the poor are increasing.
Little by little, the inhabitants of Western countries are beginning to feel these negative effects, which leads them to question a system that they wrongly believed to be protective.
As they reflect, they realize that all their certainties were not based on anything tangible.
Fortunately, an alternative, the fundamentals of which have not changed for more than a decade, is gaining ground day by day. In what follows, I propose you to understand why this alternative is the only certainty we have left in this world.
High Political Instability
The instability of the world in which we live can be seen first of all in the political arena. In January 2020, a war between the United States and Iran was on the verge of breaking out.
The level of tension between the United States and Iran has gone down a notch, but the underlying problems remain unresolved.
While Donald Trump promised progress on North Korea, nothing was resolved in 2019.
Tension has come down a notch, but North Korea continues to arm itself. How long will the other powers stay silent?
No one has the answer, but again the problem remains unresolved between the United States and North Korea.
In addition to the risk of war in the world, Brexit adds political instability, as it is not yet clear how relations between the United Kingdom and Europe will develop in the years to come.
To this we can add the American presidential election, the outcome of which cannot be predicted.
There are many areas where a Democratic takeover could turn the tide.
All this again creates great instability.
High Economic Instability
At the economic level, the world seems to have been heading towards a new economic and financial crisis for almost ten years. Everyone is predicting that this crisis will be even worse than the one in 2008.
For the time being, this economic crisis is not breaking out.
That is all well and good, but it still leaves a great deal of instability, because the current system based on excessive debt is not sustainable in the long run.
In addition to these flaws in the current monetary and financial system, the trade war between the United States and China has weighed heavily on the economies of the world’s two largest economic powers.
Globalization has reached such a point that it has inevitably led to a slowdown in many economies around the world.
The coronavirus crisis that has just erupted in China since the beginning of 2020 will have an even greater impact on the Chinese economy.
Here again, the economies of other major economic powers will also be affected.
All this adds to the prevailing global instability.
Many people are now asking themselves on a daily basis how to protect what they own in such a context.
A System That Is Walking on Its Head
It is true that the current monetary and financial system seems to be walking on its head. The system that established the U.S. dollar as the world’s reserve currency in the 1970s is not based on anything tangible.
Governments and central bankers are constantly increasing the money supply in circulation.
Making the money board work seems to be the answer to all the ills of the economy from their point of view.
In my opinion, the current system is not fixable, so they have very few alternatives. This explains why they continue to pursue the same policies over and over again.
We know that we cannot get out of a problem by applying the same measures that led to the problem.
As a private individual, you’re being hit hard.
What you own is constantly being devalued.
An American must therefore have $312 in his possession in order for his buying power in 2019 to be equivalent to his buying power of $100 in 1980.
The latest example comes from China.
In order to combat the effects of the coronavirus on the Chinese economy, the country’s central bank has decided to inject $173.8 billion in liquidity into the economy.
This insane number shows how much the current system works on its head.
This massive injection of liquidity to support the Chinese economy will necessarily devalue what the country’s citizens own.
Bitcoin Has Emerged in This Context of Instability
Bitcoin was launched on January 3, 2009 by the mysterious Satoshi Nakamoto. He conceived Bitcoin as a response to the financial and banking crisis of 2008.
Bitcoin should be seen as an attempt to solve all the ills of the current system.
The message contained in the genesis block of the Bitcoin Blockchain is a reference to a headline in The Times of January 3, 2009:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
With Bitcoin, Satoshi Nakamoto proposed to start a new era for money.
Satoshi Nakamoto designed Bitcoin as a completely decentralized Peer-to-Peer payment system with no leader.
Bitcoin therefore belongs to everyone.
The absence of a leader is an incredible strength of Bitcoin, because it means that it is unstoppable by attacking a particular individual.
In this regard, the quote from American political activist Fred Hampton explains why Bitcoin can no longer be killed now that its revolution has spread so far around the world:
“You can kill a revolutionary but you can never kill the revolution.”
— Fred Hampton
Bitcoin emerged in the midst of the global instability of the late 2000s to impose itself as a revolution on a growing number of people.
The Fundamentals of Bitcoin Remain the Same
In designing Bitcoin, Satoshi Nakamoto endowed his payment system with very specific fundamental properties.
Unlike fiat currencies whose inflation never stops, the total quantity of Bitcoins is limited to 21 million.
Bitcoin was designed to simulate the scarcity of a commodity such as gold.
Also to simulate the behavior of gold, Satoshi Nakamoto has developed a planned reduction in the production of new Bitcoins.
The more time passes, the harder it is to get new Bitcoins.
This reduction in the creation of new Bitcoins is written into the Bitcoin source code.
For every 210,000 blocks of validated transactions, the reward allocated to miners is halved in an event called Halving.
The third Halving in the history of Bitcoin is scheduled for May 2020, and will decrease the reward from 12.5 BTC to 6.25 BTC.
This reduction in production will continue in a fully predictive manner until 2140 when the Bitcoin Blockchain will have to be secured solely by transaction fees.
A third fundamental property of Bitcoin that has remained unchanged for more than a decade is the adjustment of the difficulty for validating a transaction block before adding it to the Bitcoin Blockchain.
Adjusting the difficulty to mine a block occurs automatically every 216 blocks added to the Bitcoin Blockchain.
The purpose of this operation is to ensure that the average time for adding a new block of transactions remains around 10 minutes.
All of this is done in order to keep Bitcoin’s money creation under control and predictive.
The Stability of Bitcoin’s Properties Is Its Greatest Strength
The decentralization of the Bitcoin Blockchain is an incredible strength. This has been combined with the stability of Bitcoin’s fundamentals for over a decade now.
In such an unstable world, Bitcoin has managed the feat of keeping the same functionality for more than 11 years.
As such, Bitcoin offers you guarantees and certainties.
When you decide to buy 1 Bitcoin in 2020, you know that you will still own 1 Bitcoin out of 21 million in 10, 25 or 50 years.
You also know exactly how quickly the production of new Bitcoins will slow down.
Bitcoin is totally predictive concerning its money supply.
In a world as uncertain as ours, Bitcoin therefore offers you certainties that no fiat currency can offer you.
It’s a real luxury in my opinion, because it allows you to decide how you want to take care of what you own for your future.
By being able to make this decision, you will be able to ensure a better future for yourself, and not be subject to events.