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  • Diversification With Altcoins Is an Illusion Because They All Depend on Bitcoin’s Success

    Diversification With Altcoins Is an Illusion Because They All Depend on Bitcoin’s Success

    Open your eyes, and focus on the real revolution.

    Bitcoin is the undisputed king of the cryptocurrency world. A real consensus exists on this fact that Bitcoin’s dominance over the entire cryptocurrency industry confirms. On the other hand, Altcoins’ fans believe that Bitcoin will not remain the undisputed leader in the future.

    Among absolute Ethereum fans, many believe that a reversal of dominance between Bitcoin and Ethereum will occur in the future. This hypothetical event even has a name, since Ethereum fans call it “Flippening”.

    The great Flippening illusion

    In order for this Flippening to take place, Ethereum’s market cap would have to overtake Bitcoin’s market cap. To give you a better idea of what this means, you have to keep in mind that Ethereum currently has a market cap of $26 billion, while Bitcoin is close to $170 billion.

    This shows you how far Ethereum has to go before an event such as the Flippening can take place.

    Nevertheless, many people are firmly convinced that this event will take place one day. Many go even further, thinking that Ethereum itself will be dethroned by another cryptocurrency. A kind of Flippening of the Flippening.

    Thus, some imagine that EOS or Cardano will be able to surpass Ethereum in the future.

    The big question I invite these people to ask themselves is the following:

    How could a Flippening take place if Ethereum itself is not able to keep its leading position in the field of smart contracts and decentralized applications?

    I let you try to answer this question. For my part, the answer has already been found, which is why I only buy Bitcoin.

    Some people want to hedge against risk by diversifying with Altcoins

    That said, many people feel it is important to diversify their portfolio of cryptocurrencies. To convince themselves of the importance of doing so, these people will refer to what is done in the world of traditional finance. In the stock market, it is customary to invest in companies in different sectors.

    Since some companies have cyclical activities, this allows you to hedge against the decline of some, while others will be on the rise.

    However, this approach is criticized by some, including Warren Buffett himself. Reputed to be one of the greatest investors of all time, Warren Buffett frequently explains that diversification is not a must if you know what you are doing :

    “Diversification is protection against ignorance. It makes little sense if you know what you are doing.”

    — Warren Buffett

    In any case, while in the stock market such a strategy may make sense, it cannot be as relevant in the cryptocurrency world.

    Some people are looking to diversify their portfolio in cryptocurrencies by thinking that, alongside Bitcoin, they will buy:

    • Ethereum, which is the leader in smart contracts and decentralized applications platforms
    • Basic Attention Token, which offers an innovative advertising model for the Web
    • NEXO, which is a platform offering instant credit lines
    • Enjin Coin from the Enjin platform, which is the leader in gaming on the Blockchain.
    • …

    I see a lot of questions on forums or platforms like Quora from people asking if their portfolio with an allocation of 50% Bitcoin, 20% Ethereum, 10% BAT, 10% NEXO, and 10% ENJ is relevant for the future.

    The allocation percentages will vary from person to person, as will the Altcoins selected, but you get the idea.

    These people feel reassured having diversified their portfolio in cryptocurrencies in this way.

    Diversification with Altcoins does not protect you from the real risk

    I will surely disappoint some of them with what I am going to tell you here, but you must open your eyes and understand that this diversification with Altcoins is a mere illusion.

    The fact that these cryptocurrencies operate at first glance in different sectors does not constitute a diversification that allows them to protect themselves from the real risk in the cryptocurrency world.

    So what is the real risk in the cryptocurrency world to which all Altcoins are subject?

    If Bitcoin were to fail in its revolution, then all Altcoins would fail as well. No Altcoin could survive without Bitcoin. In fact, you were not diversifying against the potential risk of Bitcoin failure by buying Altcoins.

    This diversification with Altcoins that gives you a sense of security is just an illusion that you must get out of.

    All the cryptocurrencies that are created are only failed attempts to prove that the Blockchain can be successfully used for something other than Bitcoin. Altcoins that claim to be able to replace Bitcoin with supposedly superior technology will fail sooner or later.

    Their marketing teams may make you think they have a lot to offer, but you should not lose sight of the fact that the unique invention has already taken place on January 3, 2009 with Bitcoin.

    The revolutionary invention has already been invented with Bitcoin

    Bitcoin is much more than a cryptocurrency, it is the protocol for money on the Internet.

    Bitcoin is a unique invention in the history of mankind. Altcoins that seek to seduce you, and take advantage of your propensity to let greed blind you, come too late. The real revolution has already taken place, and it is embodied by Bitcoin.

    Beware of the greed that is the number one enemy in the Bitcoin’s world.

    Sooner or later, Bitcoin will be able to respond to all the use cases that some Altcoins implement and that Bitcoin does not implement yet.

    The community of the most brilliant developers is around Bitcoin. Services will be added around the Bitcoin Blockchain to offer smart contracts in the future if needed.

    Also, if decentralized finance goes beyond the mere fad that it is currently in, it’s a good bet that services will be offered on top of the Bitcoin Blockchain sooner or later in the future.

    Diversification with Altcoins is a mere illusion

    The main thing you should keep in mind if you ever think about buying Altcoins to diversify is the following:

    There is absolutely nothing that the other cryptocurrencies on the market do that Bitcoin won’t be able to do in the future.

    Starting from this premise, which should become a golden rule, you will realize that diversification in the world of cryptocurrencies serves absolutely no purpose.

    To paraphrase Warren Buffett, this diversification that some people absolutely pursue is only a protection against ignorance. That famous ignorance about the fact that Bitcoin is the real revolution.

    Once you understand this, you will be able to focus on Bitcoin to avoid wasting your time and money on Altcoins, which are frequently referred to as Sh*tcoins. Of course, this name doesn’t owe anything to chance.

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  • Few Understand That Bitcoin Is Money, Not Just Another Technology

    Few Understand That Bitcoin Is Money, Not Just Another Technology

    The stability of the Bitcoin protocol is a necessity.

    Illustration by In Bitcoin We Trust

    Bitcoin is considered by a majority of people to be the greatest technological revolution since the emergence of the Internet. There is no doubt that Blockchain technology, which is inseparable from the success of Bitcoin, is a revolution.

    By creating Bitcoin, Satoshi Nakamoto has responded to a problem that many people have struggled with since the advent of the Internet: creating a completely decentralized electronic payment system that does not require a trusted third party to work properly.

    Until now, users had been obliged to trust the banking system or third parties system such as PayPal.

    Bitcoin combines 3 properties that make it unique

    Bitcoin is something unique in the history of mankind because until now, humans have never known something that combines the following 3 properties simultaneously:

    • Digital
    • Scarce
    • Decentralized

    Existing in limited quantities on Earth, gold is scarce. The amount of gold remaining to be mined is not known exactly but is assumed to be limited. It can be said that gold is also decentralized since deposits exist in many places on Earth. However, gold is not digital.

    The shares of a company listed on the stock market are limited and can be scarce. They are digital since they can be traded online. Nevertheless, shares of a company are centralized. Moreover, a company always can issue new shares on the market, which implies that scarcity is not absolute.

    The Peer-to-Peer BitTorrent data transfer protocol makes it easy to download a wide range of audio and video content. This network is decentralized and digital. Nevertheless, all the content is available in abundance, so there is no such scarcity that would give value.

    Bitcoin is therefore a unique invention in the history of mankind.

    Considering Bitcoin as just another technology leads to erroneous conclusions

    Those who consider Bitcoin to be primarily a technology are convinced that a successor will come to take its place in the future. Some waste their time and money looking for the next Bitcoin.

    They even go so far as buying tokens of other cryptocurrencies and then criticize Bitcoin to convince themselves that their choice is not a monumental mistake. Others want to diversify with these Altcoins thinking they are hedging against the risk of a potential Bitcoin failure.

    This diversification strategy is a pure illusion because all these Altcoins are dependent on the success of Bitcoin. Without Bitcoin, these Altcoins would not exist. If Bitcoin fails, these Altcoins will fail.

    When Bitcoin succeeds in its revolution, 99% of these Altcoins will have seen their price tend toward zero.

    Searching for the next Bitcoin is as useless as searching for the next Internet.

    Searching for the Next Bitcoin Is As Useless as Searching for the Next Internet

    Bitcoin is not just another technology that can be replaced by better technology. Many Altcoins are created then pointing out that their technology is more advanced than Bitcoin.

    All these Altcoins explain that the Proof-of-Work which is at the heart of the Bitcoin protocol is outdated because it consumes too much electricity.

    The people who created these Altcoins explain that the Proof-of-Stake, or another centralized consensus algorithm, is the future.

    By choosing to go in this direction, these Altcoins lose the decentralized side which is an incredible strength of Bitcoin. These Altcoins add nothing more to what we know about the current monetary and financial system. What is the point of replacing a flawed centralized system with another that will become one sooner or later?

    I see no point in it. Neither do all the other Bitcoiners.

    Bitcoin is money, its protocol needs to be stable

    Some people criticize Bitcoin by saying that its protocol is no longer evolving, or not fast enough. These people do not understand that Bitcoin must evolve at this rate because Bitcoin is money and not just another technology.

    The slightest bug that would be forgotten in the source code of Bitcoin would be catastrophic. It would cost billions of dollars and could jeopardize an entire system designed to give millions of people the ability to opt out of the current monetary and financial system that is flawed.

    Bitcoin is evolving at the pace it needs to evolve to ensure that the interests of all its users are safeguarded. The goal is to build a credible alternative to the current system. This monetary revolution takes time, and you must be patient and have complete confidence in Bitcoin.

    Otherwise, you will not be able to make the most of the Bitcoin revolution by becoming a Bitcoin HODLer no matter what.

    Without Bitcoin, there’s nothing revolutionary about the Blockchain

    I read some people say that Bitcoin is the king of the cryptocurrency industry simply because of its first-mover advantage. Based on this erroneous assumption, many say that Bitcoin will be replaced by an Altcoin in the future.

    To support their demonstration, these people take the example of MySpace, which was the first to enter the world of social networks, and which was later supplanted by Facebook.

    Their mistake here again is that they consider Bitcoin to be just another technology, whereas Bitcoin is the protocol for money on the Internet.

    Comparisons between Bitcoin and MySpace are meaningless because Bitcoin is not a startup.

    The Internet has never been replaced despite its many flaws. Thousands of developers are working daily to improve the Internet to correct the defects. For Bitcoin, the same thing is happening.

    The other Altcoins are just haphazard attempts to try to demonstrate that the Blockchain can be used successfully outside of Bitcoin.

    It is a failure, and it will remain so because Bitcoin and the Blockchain are interdependent. Without Bitcoin, the Blockchain is just an additional storage technology that does not bring anything revolutionary.

    The Blockchain is a revolution because it allows Bitcoin to be this revolutionary monetary protocol. Outside of this use case, the Blockchain is nothing extraordinary.

    Some do not understand what money is

    Those who don’t understand that Bitcoin is money are probably mistaken because they don’t understand what money is.

    I often read people write that money is an asset. In reality, money is not an asset, and it does not have to be. Money is a ledger that allows for exchanges in a system.

    In concrete terms, money is a socially constructed and politically supported claim on goods and services.

    The value of money lies in the collective agreement of a community to honor what money represents.

    Therefore, money itself is not a store of value. On the other hand, the agreement of the community to honor what the money represents is a store of value.

    Thus, Bitcoin is money backed by the tacit agreement between its users about what it represents. The mathematics at the heart of Bitcoin’s source code is there to ensure the security and proper functioning of the network.

    However, Bitcoin is not backed by mathematics as some people say. Bitcoin is backed by the belief of its users in what it stands for.

    The number of people who believe in what Bitcoin stands for continues to grow. For this reason, Bitcoin cannot be replaced by technologies that claim to be superior. Without users, technology is useless.

    Conclusion

    All the Altcoins, which are created only to generate money for their founders, will not be able to match the utility of Bitcoin.

    The unique invention took place with Bitcoin, which is the real revolution. Bitcoin cannot be replaced because it is full-fledged money that makes the lives of its users better.

    Bitcoin will evolve to correct some of its limitations, but it will remain the only cryptocurrency that matters in the future. The sooner you understand this, the sooner you can truly enjoy Bitcoin.

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  • 9 Lessons Bitcoin Will Have Taught Us in 2021

    9 Lessons Bitcoin Will Have Taught Us in 2021

    #4: Boom/Bust cycles seem to be over in the Bitcoin world.

    Illustration by Sylvain Saurel

    The year 2021 will have been a particularly exciting one in the Bitcoin world. It was this year that one country, El Salvador, adopted Bitcoin as a legal tender for the first time. Twelve and a half years after the launch of the Bitcoin network on January 3, 2009, by Satoshi Nakamoto, Bitcoin took another crucial step.

    The hyperbitcoinization of the world goes through these steps. Of course, the powerful people in the current system immediately criticized the initiative of President Nayib Bukele. The fear of the IMF or the World Bank is clear: that Bitcoin will make them obsolete.

    We will see if this happens in the future as more countries adopt Bitcoin as their legal tender. For other countries will follow the path laid out by Nayib Bukele. It is only a matter of time. All the small countries left behind by the current monetary and financial system have a huge interest in seizing the Bitcoin opportunity to try to change the course of their destiny.

    The adoption of Bitcoin by countries will still be a strong trend to observe in 2022.

    Apart from that, 2021 will have brought us its share of lessons as always. Some of these lessons were already known, but I thought it was important to make a small assessment for the newcomers. Please feel free to comment and tell me what you’ve learned about the Bitcoin world in 2021.

    Don’t blindly listen to influencers

    No one can predict the price of Bitcoin 100%. Anyone who tells you otherwise is simply lying. That’s why I take precautions every time I give you my predictions about the price of Bitcoin in the short or medium term.

    My predictions are only an expression of my opinion. An opinion based on data that I have analyzed. But again, there can be a significant cognitive bias. I try to be careful not to fall into confirmation bias, but I’m not perfect, far from it.

    So you need to be wary of influencer predictions. Promises are only binding on those who believe them. Consider these predictions as opinions that you will include in your thought process. Then, it will be up to you, and only you, to synthesize them to make the best decision on what you want to do.

    Because at the end of the day, it’s always your money. Not the influencers’.

    Don’t try to time the market

    In the world of traditional finance, the following adage is often repeated:

    “Time in the market always beat timing the market.”

    This is also true with Bitcoin. It is even more true with a NgU technology like Bitcoin in my opinion. Your biggest natural advantage with Bitcoin is the time you are willing to HODL Bitcoin.

    The key is to develop your knowledge about Bitcoin, the economy, and money so that you reach the level of confidence that will allow you to become a HODLer no matter what. Then you can take advantage of your greatest strength in the Bitcoin world. When others panic, you will remain calm and confident in your convictions.

    Then you can apply the best strategy there is with Bitcoin: Buy, HODL, Repeat. Simple and effective.

    HODL no matter what is the best strategy with Bitcoin

    The amount of time you are willing to spend in the Bitcoin market is your biggest natural advantage. This will protect you from short-term price manipulation by the Whales or large institutional investors as we saw on the night of December 3 to 4, 2021 with the leverage flush that caused the Bitcoin price to drop from $56K to $42K in a matter of hours.

    With long-term goals, you will be able to protect yourself from this volatility of the Bitcoin price. You will even make it your best ally.

    Recently, I saw an interesting piece of data that confirms this. No BTC owner who has HODL for more than 3 years has lost money. This should lead you to understand that HODL Bitcoin is an excellent strategy. Even better is the fact that it requires no special skills, just confidence, which then leads to patience.

    It’s up to you to develop that confidence in Bitcoin.

    Boom/Bust cycles seem to be over in the Bitcoin world

    Since Bitcoin’s inception, we have become accustomed to 4-year market cycles that were interspersed with a Bitcoin Halving each time. Globally, a Bull Market would start 6 months after the Halving and last 18 months. Then we would have a Bear Market more or less prolonged until the next Halving.

    These Boom/Bust cycles seem to be over in the Bitcoin world. The predictive models seem to need to be updated with the current cycle whose Bull Market seems to me to extend over Q1 2022 or even Q2 2022.

    Bitcoin is a young asset. So it makes sense that the arrival of new types of investors has changed the game. Institutional investors have a longer-term view than retail investors for example. Besides, the fact that Bitcoin’s adoption is becoming continuous in a context of high inflation also changes the codes. Finally, since everyone has been aware of the market cycles of Bitcoin since its inception, things may change.

    We will see if this is confirmed in the coming months.

    You don’t have to be ashamed to take profits at some point

    I am a Bitcoiner, and my strategy with Bitcoin is long-term. When asked when I plan to sell my Bitcoin, I say this: Bitcoin HODLer one day, Bitcoin HODLer forever. So I don’t set limits on how long I can HODL Bitcoin no matter what.

    Taking profits too prematurely is one of the worst pieces of advice given in the Bitcoin world in my opinion.

    However, we are all different. We all have different goals and different profiles. So if someone thinks that taking profits with their Bitcoin at some point is the best choice for their profile, then they have no shame in doing so.

    As I keep telling you, it’s your money at stake. I’m giving you my opinion, but I understand that your goals may be different. Whatever happens, make the best decision for your interests.

    Zoom Out, DCA, Ignore the FUD. Enjoy the ride

    Once you understand the why of Bitcoin, you’ll understand that the goals of the Bitcoin revolution are long-term. Bitcoin mass adoption will be in 3 phases:

    • Store of value
    • Widespread means of payment
    • Unit of account

    These phases will take time, and even though everything is moving very fast with Bitcoin, you’ll have to learn to be patient. When you have reached the right level of confidence, you will take a step back. Then you’ll see that Bitcoin is an accumulation game for years to come. To make the most of it, the following pattern is ideal: Zoom Out, DCA, Ignore the FUD.

    Then you can enjoy your adventure in this revolutionary world.

    The 3 Phases of Bitcoin Mass Adoption

    Not your keys, Not your Bitcoin

    The golden rule of Bitcoin that needs to be repeated over and over again: Not your Keys, Not your Bitcoin. Every year, people lose Bitcoin for not making the security of their Bitcoin a priority. This is sad because keeping your Bitcoin secure is not that complex.

    It’s a necessity to truly access the liberating power of Bitcoin. The first thing you need to do, if you haven’t already done so, is to get your Bitcoin off the exchange platforms. That way, you won’t be letting a third party secure your Bitcoin.

    You will have complete control over the fruits of your labor and can live your life on your own terms.

    Bitcoin is the Next Bitcoin

    After four years without any major evolution, the Bitcoin protocol has seen a Bitcoin evolution in late 2021 with the activation of the Taproot upgrade. Taproot should be seen as a foundation for the next big innovations that will be built on top of the Bitcoin Blockchain.

    Contrary to what some would have you believe, Bitcoin technology is not outdated. It is perfect for giving credibility to Bitcoin’s unique monetary attributes.

    There is no need to waste your time looking for the next Bitcoin, just as there is no need to waste your time looking for the next Internet. Bitcoin is the Next Bitcoin. Period.

    Time is the scarcest resource on earth. Bitcoin helps you make the most of your time

    Looking for something rarer than Bitcoin? Well, it exists. It’s about the time you have on Earth. There is nothing more precious than the time you will live. To make the most of your time, you must be able to live your life on your own terms.

    This is where Bitcoin should be seen as your best ally. By achieving true financial freedom with Bitcoin, you will be able to focus on living your life to the fullest.

    Final Thoughts

    Bitcoin is an incredible monetary revolution that changes your worldview in many ways. Bitcoin pushes you to constantly expand your knowledge on a whole host of subjects that you were not interested in before. Bitcoin makes you want to fully access the power of knowledge to change your life for the better.

    Here I have delivered some of the fundamental lessons that Bitcoin will have taught us by 2021. Many of these lessons have already been highlighted in past years, but since new people are constantly coming into the Bitcoin world, it’s always interesting to dwell on them from time to time.

    What are some of the biggest lessons you’re taking away from your Bitcoin journey in 2021 (and even before)?

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  • Bitcoin’s Power Consumption Is Not Its Achilles Heel

    Bitcoin’s Power Consumption Is Not Its Achilles Heel

    Bitcoin is even compatible with the fight against global warming.

    Illustration by In Bitcoin We Trust

    Since the emergence of Bitcoin in the eyes of the general public at the end of 2017, its detractors have constantly relied on the high electricity consumption required for the proper functioning of its Blockchain to criticize and denigrate it. According to these fierce opponents of Bitcoin, this electricity consumption of Bitcoin is its real Achilles heel that will prevent mass adoption by the general public in the future.

    The problem is that the general public is now convinced that Bitcoin cannot go hand in hand with the fight against global warming. Thus, Bitcoin would not be good from an ecological point of view.

    A recent study by Susanne Köhler and Massimo Pizzol at the University of Aalborg in Denmark contradicts what appear to be false assumptions. Indeed, the impacts of Bitcoin on the environment, and in particular the CO2 emissions induced by the operation of its Blockchain, would not be as catastrophic as claimed by its opponents.

    I, therefore, propose that you return to a study that would confirm what Bitcoin advocates have been arguing for many months: Bitcoin’s electricity consumption is not its Achilles heel.

    Bitcoin Is Based On The Proof-of-Work

    The proper functioning of the Bitcoin Blockchain requires the validation of transactions carried out on the network. These are grouped into blocks that are validated at regular intervals. Each block being added after the previous one by miners who have managed to solve a kind of mathematical equation that is quite simplistic but whose resolution is very computationally intensive.

    This consensus mechanism on which the Blockchain Bitcoin is based is called Proof-of-Work (PoW).

    The difficulty of the mathematical equation to solve for a block of transactions to be undermined is periodically readjusted. Nevertheless, this difficulty tends to increase constantly except during prolonged bear markets as it was the case in 2018. At that precise moment, the difficulty decreased in front of the loss of financial interest of the miners for Bitcoin mining.

    Difficulty for validating a new block on Bitcoin Blockchain

    The almost uninterrupted growth in the difficulty of mining Bitcoins inevitably leads to an arms race on the part of miners to obtain ever more computing power.

    Constant increase in the power of Hash available on the Bitcoin Blockchain

    In this way, they maximize their chance of receiving the famous reward shared between the miners who have validated a block of transactions in the Bitcoin Blockchain.

    Currently, the reward for the miners is 12.5 BTC but it will decrease to 6.25 BTC in May 2020 following the third Bitcoin Halving.

    This division of the reward given to miners will make the creation of new Bitcoins even rarer. This scarcity will inexorably increase the price of Bitcoin but also increase competition between miners who will continue to try to have ever more computing power available to be sure to validate the maximum number of transactions’ blocks.

    The computational power of miners being obtained through the purchase of computer equipment specialized in Bitcoins mining. These are the famous Application Specific Integrated Circuits better known by the acronym ASICs.

    Bitcoin Mining Induces High Power Consumption

    The phenomenal computational power required to validate a transaction’s block on the Bitcoin Blockchain result in very high power consumption. According to the Bitcoin electricity consumption index maintained by the Cambridge Centre for Alternative Finance, Bitcoin consumes 70 Terawatt-Hours per year to ensure the reliability and security of its network.

    Bitcoin electricity consumption index

    This electricity consumption places the Bitcoin Blockchain just above Colombia, a country with a population of 48 million.

    While this electricity consumption is already a problem in itself for many opponents of Bitcoin, what bothers most is the estimate made by some that the emissions resulting from this consumption would be in the order of 63 megatonnes of CO2 per year.

    This annual estimate of Bitcoin’s CO2 emissions has led some researchers to argue that Bitcoin alone could break global targets for combating global warming.

    CO2 Emissions From The Bitcoin Blockchain Have Been Overestimated

    The picture I have just painted so far is not very bright for Bitcoin. However, the study made by Susanne Köhler and Massimo Pizzol invalidates all these hypotheses concerning Bitcoin’s CO2 emissions.

    Indeed, previous estimates are based on the assumption that carbon dioxide emissions from power generation are uniform across China.

    Just over half of all Bitcoins’ mining activities take place in China. By focusing on China’s CO2 emissions at a more regional level, all the assumptions made previously have been significantly reduced.

    As a result, Bitcoin-related CO2 emissions for 2018 have fallen to 17 megatonnes.

    In concrete terms, it appears that the Inner-Mongolia region, which represents 12.3% of Bitcoins’ mining activities, generates its electricity from heavy coal, which means that it accounts for just over a quarter of total Bitcoin mining’s carbon footprint.

    Percentage contribution to Bitcoin mining’s carbon footprint by location

    On the other hand, the Chinese province of Sichuan, which generates its electricity mainly from hydroelectric power, has seen its share of total Bitcoin-related CO2 emissions fall to 4.6%.

    Bitcoin Is Fully Compatible With The Fight Against Global Warming

    This new study therefore undermines the argument that opponents of Bitcoin constantly oppose it, namely its anti-ecological aspect. Of course, not everything is idyllic since electricity consumption is indeed high.

    Nevertheless, it is worth noting that it is the fact that Bitcoin consumes so much energy that gives it such value in reality.

    If Bitcoin mining wasn’t so resource-intensive, it would probably have no value. This is therefore a good thing for Bitcoin and its future.

    The main information to remember is that Bitcoin is not incompatible with the fight against global warming, which allows it to be clearly part of the world’s future.

    This study also highlights the fact that the production and destruction of computer equipment required for mining represents only 1% of Bitcoin’s CO2 emissions.

    This study, which I hope will reconcile ecologists with Bitcoin, is in addition to another very positive study for Bitcoin published in June 2019 by CoinShares, according to which 74.1% of mining activity is powered by electricity from renewable energies.

    The Bitcoin’s electricity consumption is therefore not its Achilles heel, as I have just shown you, based on the study by Susanne Köhler and Massimo Pizzol. Opponents of Bitcoin will have to change their minds in the future.

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  • 4 Advantages That Make Bitcoin A Credible Alternative To The Current Monetary System

    4 Advantages That Make Bitcoin A Credible Alternative To The Current Monetary System

    The future will tell us if these advantages of Bitcoin will be sufficient.

    Illustration by In Bitcoin We Trust

    Bitcoin has come a long way since its creation by Satoshi Nakamoto in early 2009. Indeed, who could have imagined at the time that Bitcoin would be the most successful asset of the next decade? Probably no one and not even Satoshi Nakamoto himself. Despite the recent price of Bitcoin at around $7,000, Bitcoin is still the best-performing asset of the last 11 years.

    The success is such that more and more Bitcoin supporters come to believe that their cryptocurrency will actually replace the current monetary system in the future. Given the success of Bitcoin so far, the people who call them sweet dreamers are taking big risks in my opinion.

    Only time will tell whether Bitcoin’s supporters are right or wrong. In the meantime, I propose that you revisit the 4 fundamental advantages of Bitcoin compared to the current monetary system. It is these 4 advantages that make Bitcoin a credible alternative to this system.

    1. Bitcoin Has No Leader Or Owner

    Satoshi Nakamoto created Bitcoin but he chose to erase himself by remaining anonymous. Bitcoin is simply his gift to humanity. Thus, the leader has no leader or owner.

    Bitcoin belongs to all the inhabitants of the Earth.

    All this makes Bitcoin clearly universal. The absence of a leader makes Bitcoin clearly unstoppable. Indeed, politicians and regulators in the major developed countries have no one to pursue to slow the growth of Bitcoin.

    This lack of a single leader for Bitcoin forces the community to find consensus to evolve the underlying technology.

    Bitcoin is therefore a democracy where all users have the same weight. We are here a few light years away from our current democracies in which most citizens have lost confidence.

    It must be said that the annoying habit of central bankers creating more and more money by turning the banknote printing plate is enough to leave you perplexed and to make you lose complete confidence in the current monetary system.

    For many, central bankers are responsible for the great disparities in wealth in today’s world. The current monetary system is broken and does not seem to be repairable as it stands.

    2. Bitcoin Is A Permissionless System

    Money creation is the preserve of central bankers in every major developed country. The decision to create more and more fiat currencies is theirs and the people have no say in the matter.

    The people no longer want to be left out of decisions that further devalue their money.

    Unfortunately, the current monetary system is not designed to give people the opportunity to express their opinions on major decisions taken by central bankers.

    On the other hand, Bitcoin is a permissionless system open to all.

    Anyone can choose to participate in the Bitcoin Blockchain. There is no need for special permission. To do this, you must simply download the Bitcoin Blockchain whose source code is open source.

    Once the Bitcoin Blockchain is installed on your computer, you can become a network node and participate in the validation of Bitcoin transactions. You become a miner of the Bitcoin Blockchain and you can try to get part of the famous reward given to miners validating a block of transactions.

    Of course, with a simple computer, your chances are more than reduced given the computing power you now need. Nevertheless, nothing prevents you from setting up your own mining farm, for example, because Bitcoin is open to everyone.

    3. Bitcoin Is Decentralized

    Before I talk about the advantages of Bitcoin decentralization, I will ask you a question about the money you have in your bank account:

    Can you dispose of the money stored in your bank account as you really want without any control from your bank?

    Although many tend to believe that the answer to this question is yes, the truth is that banks have a right to control the money they keep for you.

    Indeed, a bank can block some of your transactions or close your account at any time if it decides in a totally arbitrary way. The bank will also provide the tax authorities with information on all your banking transactions.

    Of course, you have nothing to hide. However, why couldn’t you be entitled to confidentiality and dispose of your money as you wish?

    With Bitcoin, this problem does not arise. When you buy Bitcoins, they are really yours. You can use it as you wish because no one will be able to prevent you from making transactions on the Bitcoin Blockchain.

    Bitcoin decentralization allows you to enjoy your Bitcoins the way you want.

    Bitcoin thus gives back the power to its users. A mass adoption of Bitcoin by the general public as an online payment system would thus enable the people to regain control over the monetary system and regain confidence in it.

    This gives you a better understanding of why politicians in the major developed countries have a deep aversion to Bitcoin: they are simply afraid of losing their power, which they abuse all the time.

    4. Bitcoin Is Transparent And Fully Verifiable By All

    Bitcoin is based on a Blockchain whose operation has been detailed by Satoshi Nakamoto in his white paper “Bitcoin: A Peer-to-Peer Electronic Cash System”. Besides, the Bitcoin source code is open, which means that any developer can retrieve it and study it to check how the Bitcoin works inside.

    The Bitcoin Blockchain is transparent which makes it totally verifiable by anyone.

    All Bitcoin transactions are freely accessible within the Bitcoin Blockchain whose account book is a real open book. All this allows Bitcoin users to have complete confidence in the system they are using.

    The power of Bitcoin therefore lies above all in the confidence that users have in the power of its technology.

    On the other hand, the current monetary system is built on a trust acquired by the government. This power given to politicians through democratic elections is then widely abused and there are no longer any safeguards to allow the people to keep control.

    A mass adoption of Bitcoin would constitute the takeover of a new type of monetary system based on genuine trust.

    4 Obstacles To Bitcoin Mass Adoption

    Conclusion

    As we arrive in 2020, no one can say with certainty whether Bitcoin will be able to replace the current failing monetary system in the future. In 2009, no one was also able to predict that Bitcoin would be the best-performing asset of the next decade. And yet the facts have spoken.

    Created by a single man, Bitcoin today has a market capitalization of more than 130 billion dollars, which would already make it a member of the Top 60 richest countries in the world. Everything is therefore possible with Bitcoin and the future could hold surprises for its detractors.

    The current monetary system, built on an outdated hierarchical and permissioned system, is clearly flawed and unsustainable. With its decentralized, transparent and permissionless technology, Bitcoin could very well be a response to the failure of this system by putting the notion of trust back at the heart of a new system that would benefit the greatest number of people.

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  • Bitcoin Is Your Way out of the Infinite Vicious Circle in Which the Current System Locks You In

    Bitcoin Is Your Way out of the Infinite Vicious Circle in Which the Current System Locks You In
    Illustration by In Bitcoin We Trust

    Without Bitcoin, we would have no hope today.

    The current economic crisis highlights more than ever the flaws of the current monetary and financial system. For those who are really interested in the economy, as well as in how money works, these flaws of the current system are not new.

    For many years now, voices have been raised to say that the current system, which will soon be 50 years old, has failed in its mission to stabilize the world economy.

    The number of economic and banking crises has never been higher than since Richard Nixon unilaterally ended the convertibility of the U.S. dollar into gold in August 1971.

    This decision put an end to the gold standard system established at Bretton Woods in 1944 at the end of World War II.

    The current system has failed in its mission to stabilize the world economy

    Since then, the U.S. dollar, but also all other fiat currencies, are no longer based on anything tangible. The central banks of each country are free to print as much fiat currency as they wish.

    The result of this lack of hard money at the global level is disastrous for the majority of the world’s inhabitants.

    Since 1971, a purchasing power of $1,000 has lost 85% of its value. If you had wanted to beat the effects of inflation since 1971, you would have been able to turn that $1,000 into $6,330 by 2020:

    $1,000 in 1971, adjusted for inflation

    When you discover the devastating effects of monetary inflation on what you own in U.S. dollar, you will probably come to the same conclusion as me and so many others:

    We are slaves to the current system that forces us to earn more and more U.S. dollar just to have the chance to maintain the same standard of living.

    The current system locks you into an infinite vicious circle

    The current monetary and financial system enriches a minority of people, while trapping the majority in an infinite vicious circle:

    The infinite vicious circle of the current monetary and financial system — Sylvain Saurel

    This vicious circle is made up of six major stages which have been in an infinite loop since the establishment of the current monetary and financial system in August 1971:

    1. An economic crisis intervenes. The reasons can be a banking crisis as in 2008, or a health crisis as in 2020 with the coronavirus pandemic.
    2. Faced with this economic crisis, the Fed and the other central banks always end up opting for the same solution: to print more and more fiat money. This fiat money printed out of thin air is then injected directly into the monetary and financial system.
    3. The governments of the major economic powers implement stimulus plans, which are almost always financed by an increase in public debt. The public debt-to-GDP ratio of most G20 countries is now above 100% or even worse.
    4. All of these decisions lead to great monetary inflation. The value of the U.S. dollar, which is the world’s reserve currency, has been steadily declining over time, as shown by the change in purchasing power in U.S. dollar since 1971.
    5. The injections of money benefit the richest people. Each economic crisis further strengthens their wealth. The poorest, who need help the most, are put in even greater difficulty by these decisions. The current system therefore benefits a minority of people who are already rich.
    6. The real problems of the monetary and financial system are known, but they are never really addressed. Injections of money in almost infinite amounts only serve to postpone the resolution of problems. As these are never solved, a new economic crisis always occurs about ten years later.

    The vicious circle of the current system is dramatic because from crisis to crisis, the magnitude of the problems increases.

    Each economic crisis is much worse than the previous one

    While a few hundred billion dollars were enough in 2008 to postpone the economic crisis, the economic crisis of 2020 has already required the injection of more than 10,000 billion dollars from the world’s major central banks.

    Despite this, the recession is still there. Those who hoped for a rapid restoration of the economy must face the facts:

    The U.S. economy, and most of the G20 economies, will suffer a W-shaped recession.

    The economic crisis of 2020 will therefore last for many more months. Unfortunately, I fear that the worst is yet to come. The stock market, which is currently facing the illusion of an iceberg, will not be able to remain disconnected from the real economy indefinitely.

    Sooner or later, the stock market will fall back into line with the situation of the real economy.

    This real economy for which the IMF anticipates GDP falls of 6 to 14% for most G20 countries:

    Source: CNN

    With the exception of China, which is expected to show timid growth of 1% of its GDP in 2020, all the other major world economic powers will be in recession in 2020.

    The Fed and other central banks will probably have to print more fiat money in the coming months.

    Governments will have to put in place new stimulus plans that will further increase their respective public debts. For example, United States now has a public debt of over $26 trillion.

    At the current pace, and given the seriousness of the current economic situation, the threshold of 30 trillion dollars of public debt by the end of 2020 seems unfortunately inevitable for the United States.

    The powerful people at the head of the current system do not seek to make it fairer

    The goal of the Fed and other central banks at this time is just to support the economy until the situation allows for a return to growth. None of the powerful at the head of the current system are therefore seeking to resolve the flaws of the system.

    However, they are all well aware of the limits of the current system, which is totally unfair to the poorest, as Jerome Powell explained in an interview for 60 Minutes on May 17, 2020:

    “The people who’re getting hurt the worst are the most recently hired, the lowest paid people. It’s women to an extraordinary extent. We’re actually releasing a report tomorrow that shows that, of the people who were working in February who were making less than $40,000 per year, almost 40% have lost their jobs in the last month or so. Extraordinary statistic. So that’s who’s really bearing the brunt of this.”

    — Jerome Powell

    In 2008, in the same situation, except that the injections of money into the system were “only” in the order of a few hundred billion dollars, we were all rather resigned.

    Indeed, there was no credible alternative to the monetary and financial system established in 1971 by Richard Nixon.

    At the time, we didn’t see any possibility of change. We were going to have to make do with this flawed system that no one wants to change so that it would better respect the inhabitants of the Earth.

    And then Satoshi Nakamoto created Bitcoin at the end of 2008.

    One cannot help but see Bitcoin as the answer to the flaws of the current system that locks us into an infinite vicious circle of economic crises.

    Without Bitcoin, we would still be without hope for a better world in 2020.

    Bitcoin is our only hope for a fairer world for all

    Today, we have Bitcoin at our disposal. Bitcoin is a hard money that has the potential to stabilize the world economy in the future.

    In the meantime, Bitcoin is the best weapon at our disposal to break the vicious circle in which the current system traps us. With Bitcoin, you are able to fully protect your wealth. Better yet, you have the best tool to fight against the censorship of governments and other powerful people in the current system.

    Bitcoin allows you to take full responsibility for what you own.

    As long as you have the private keys to your Bitcoins in your possession, no one can confiscate them, or prevent you from making the transactions you want to make with them.

    By making the decision to buy Bitcoin today, you are opting out of a flawed monetary and financial system that no one wants to change to create the conditions for a better world for the majority of people.

    The millions of people in countries under authoritarian regimes who are already using Bitcoin as a Plan A today are proof that Bitcoin is necessary for the world of the future. Bitcoin will enable the financial inclusion of hundreds of millions of people excluded from the current system.

    A solution that is inclusive and protective of the people could only emerge from the people. Bitcoin is that totally democratic solution whose success or failure depends solely on its users.

    Bitcoin needs you as much as you need Bitcoin. This interdependence is essential. Without you, Bitcoin cannot succeed. Without Bitcoin, you are condemned to the infinite vicious circle of the current system with central banks printing more and more fiat money.

    This is the fundamental reason why I believe so strongly in Bitcoin.

    Conclusion

    More and more people are opening their eyes every day, and it is only a matter of time before they decide to come and test a credible alternative to the current system. Sooner or later they will buy Bitcoin to protect themselves from the flaws of the current system.

    Bitcoin will probably never replace the current system, but it will be a leading alternative solution that allows every person on Earth to choose whether or not to live their lives on their own terms.

    As such, Bitcoin is an incredible hope in a world where everything seems to be turning upside down in 2020. Buying Bitcoin also means believing in this world of a better future for all.

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  • The 3 Main Lessons That HODLING Bitcoin Teaches You

    The 3 Main Lessons That HODLING Bitcoin Teaches You

    Being a real Bitcoin HODLER will definitely change your life.

    Illustration by In Bitcoin We Trust

    The Bitcoin world is divided into two main categories: HODLERS and others! HODLERS are very special individuals who fundamentally believe in Bitcoin as a technology that can revolutionize the current dominant financial system and who will therefore accumulate Bitcoins by keeping them regardless of its price in the market. The term HODLER comes from HODL, a slang term that has become a hit on the Internet.

    It all started on December 18, 2013 on the Bitcoin forum when a user, registered under the pseudonym GameKyuubi, posted a message that has been part of the legend since:

    First appearance of the term HOLDING

    When reading this user’s message, we guess that he must have been in an unnatural state and that he therefore made an error in the title of his message by inverting two letters within the word “HOLDING” and finally writing: “I AM HODLING”.

    This post quickly had a viral effect and now people who believe in Bitcoin in the long term are called HODLERS quite naturally. Being part of the HODLERS is something very special in a market as volatile as Bitcoin. It goes without saying that this can put some people’s nerves to the test in prolonged bearish market conditions such as those experienced throughout 2018.

    Nevertheless, the HODLERS hold their ground no matter what happens on the market and finally, they grow out of it thanks to 3 main lessons learned from keeping their Bitcoins at all costs.

    1. Just Like Bitcoin, Your Attention Is Scarce And Therefore Precious

    When designing the Bitcoin, Satoshi Nakamoto decided to set an arbitrary limit of 21 million BTC that could be put into circulation by 2140 at the most, thereby creating the equivalent of a deflationary currency and making Bitcoins scarce.

    Everything that is scarce in life is precious.

    This scarcity of Bitcoin will allow it to become a true store of value for the greatest number of people in the future. The HODLERS are convinced of this and that is why they continue to accumulate Bitcoins month after month.

    By keeping a cool head as the market goes up or down, and as the FOMO feeling spreads on the Web, HODLERS quickly realize that there is another thing that is rare in life: time.

    Your time on Earth is running out. It is scarce and therefore extremely valuable.

    The HODLERS have understood this well and that is why they conscientiously value their attention time on the Web or elsewhere. That famous attention time that companies are willing to do anything to take over!

    Only one valid advice for your Bitcoins and your attention time: use them wisely for things that are really worth it.

    2. Bitcoin Can Be Boring, Just Like Life, But You Have To Appreciate The Boredom

    Bitcoin is very volatile. It is therefore quite possible that its price on the market will take 20% in a few hours. Similarly, it is quite possible that its price could drop by 20% in a few hours as well. When buying Bitcoins, you must therefore keep these risks in mind in order to make your own choices in full knowledge of the facts.

    Nevertheless, it should not be assumed that Bitcoin experiences such large fluctuations every day.

    Between these periods of intense price fluctuations, Bitcoin often sees its price stagnate for long days, weeks or even months in some cases!

    Profit-hungry investors even go so far as to say that Bitcoin can become boring.

    On this point, I have only one thing to say: they are absolutely right. Bitcoin can be a dreadful bore for investors seeking only profit.

    The HODLERS quickly understand that this boredom with Bitcoin is a part of life. It’s even a good thing! You have to know how to enjoy this boredom and enjoy these periods of prolonged calm. Just because we are in a world where everything is going faster and social media companies are trying to addict you at all costs by trying to constantly boost your dopamine level doesn’t mean you can’t stop and slow down if you want !

    Take the time to enjoy boredom throughout your life just as the HODLERS enjoy the long periods of calm in the Bitcoin price.

    3. HODLING Bitcoin Teaches You To Follow Your Instinct

    In addition to patience, HODLERS develop another important quality by clinging to their precious Bitcoins. They learn to follow their instincts. Indeed, when the Bitcoin drops by more than 100% in a few months, you have to believe fundamentally in the Bitcoin to remain a HODLER.

    That’s precisely what the HODLERS are: fervent defenders of Bitcoin against all odds.

    If you have decided to keep your Bitcoins and become a HODLER, it is because you are convinced that Bitcoin is a revolutionary technology that will change the current monetary system in the future.

    You are deeply convinced that Bitcoin is the future.

    In fact, you will follow your instincts no matter what and keep your Bitcoins even if the whole world decides to sell. Even better, you will take advantage of this opportunity to strengthen your positions by accumulating more and more Bitcoins.

    This unwavering faith in your instincts will spill over into the rest of your life. That’s a certainty! When you have a conviction on any subject, you will stick to it because you will be more confident despite the criticism of others.

    Conclusion

    For HODLERS, Bitcoin is a technology that promises to revolutionize the world we know today. This unshakeable faith in Bitcoin and the revolution it embodies teaches a number of lessons, of which the three I have just described are the main ones.

    By becoming a HODLER, you will necessarily become aware of the importance of everything that is scarce with your time on Earth as the most important thing. You will then learn to appreciate the boredom that life can sometimes bring. Finally, you will acquire an unwavering faith in your instinct thanks to the simple fact to believe in Bitcoin despite the criticism of those around you.

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  • Apply the 100–10 Rule to Maximize Your Profits With Bitcoin

    Apply the 100–10 Rule to Maximize Your Profits With Bitcoin
    Illustration by In Bitcoin We Trust

    This strategy is within everyone’s reach.

    Bitcoin cannot be reduced to a mere financial investment. Bitcoin is a complete paradigm shift that wants to revolutionize the current monetary and financial system by proposing an alternative that is more respectful of the people.

    Bitcoin is therefore a real revolution, of which we have only just begun to see a small part of the impact it will have on the world of the future.

    The fact that Bitcoin goes far beyond financial investment does not mean, however, that you should not try to act intelligently when buying Bitcoin. Wanting to maximize your profits with Bitcoin while fully supporting its revolution is not contradictory.

    Many people discover the Bitcoin world by being initially attracted by the financial gain that Bitcoin can provide. It must be said that Bitcoin has been the best financial investment of the past decade, allowing to transform $1 invested in 2010 into $90K by the end of 2019.

    An asset like Bitcoin that can achieve a performance of +9,000,000% in ten years is something unique in the history of investment.

    It seems logical that many people come into the Bitcoin world for the money at the beginning. Unfortunately, many of these people will make the mistake of wanting to trade. Their greed blinds them to the point that they forget that trading is a very special activity that requires special skills.

    The majority of people do not have the necessary skills to be able to make money from trading.

    After losing a lot of money, those beginners who dreamed of making a fortune with Bitcoin leave this world in despair. The most dramatic thing is that they have missed out on the most important thing: the Bitcoin revolution.

    Those who stay in this world, and become Bitcoiners, understand that the best strategy to enjoy Bitcoin while supporting its revolution is to become a Bitcoin HODLER.

    If your decision is to become a Bitcoin HODLER, you will be able to take advantage of the 100–10 rule to maximize your profits with Bitcoin, while minimizing your risks. You will be able to enjoy the Bitcoin revolution in every way.

    No more than 10% of your time should be spent monitoring the Bitcoin price

    After buying Bitcoin for the first time, you will probably be euphoric. You feel that you are entering a new world that may well change your life. Bitcoin will certainly change your life, but not in the way you imagined.

    Bitcoin may make you rich, but most of all Bitcoin will allow you to discover the ugly truth about the monetary and financial system.

    Until now, you never imagined that an alternative was possible. With Bitcoin, you understand that a total paradigm shift is underway. However, at this stage of your discovery of the Bitcoin world, you are thinking more about profit than about the revolution that Bitcoin brings.

    So you are constantly looking at the Bitcoin price. Your smartphone is always in your hands. It makes you lose control of your emotions. This is a bad thing, because if the Bitcoin price were to drop sharply, you could panic by selling all your Bitcoin at a loss.

    Many did this in 2018, but also in March 2020 during the Bitcoin Black Thursday when Bitcoin price lost 50% of its value in a few hours.

    In order to avoid falling into this trap, you should apply the 100–10 rule.

    This rule, which I imagined, states that you should not spend more than 10% of your valuable time monitoring the Bitcoin price.

    Set yourself precise and well-defined time slots and stick to them. As a Bitcoin HODLER, you are there for the long haul. Therefore, you don’t need to constantly stress about Bitcoin price or analyses on the evolution of its price.

    Spend the agreed time, and then make your decisions about future purchases. Then place your orders, and let the time pass. You may also consider applying a DCA strategy to smooth your costs by making regular, automated purchases of a certain amount of BTC.

    By doing so, you will be much calmer, but more importantly you will have much more time to devote to the Bitcoin revolution.

    Instead of wasting time constantly monitoring the Bitcoin price , you will be able to read books and articles that will help you better understand Bitcoin.

    Never forget that it is through education that you will be able to make the best decisions for your future. Ignorance is what costs you the most money in life.

    By applying the first part of the 100–10 rule, you can reduce the level of your ignorance about Bitcoin and the economy in general a little more each day.

    You must HODL 100% of the Bitcoins you have purchased

    Since you have decided to become a Bitcoin HODLER, you understand that you need to play with Bitcoin for the long term. The Bitcoin revolution has been built in block after block facing adversity since its inception just over eleven years ago now.

    In the months and years to come, Bitcoin will continue to advance at its own pace.

    You must believe in Bitcoin fundamentally and be patient. With this in mind, you will be able to maximize your profits with Bitcoin.

    To do this, you must absolutely keep 100% of the Bitcoins you buy. Put them safely on your hardware wallet, and don’t touch them. The Bitcoin revolution is still in early stage. In the years to come, Bitcoin price is set to soar to heights that many thought were unimaginable when it was first created.

    Bitcoin will probably reach $100K during its next bull market, the highest point of which is expected by the end of 2021.

    If you sell your Bitcoin, or spend it after making an initial profit, you will surely have eternal regrets when Bitcoin price rises above $250K by 2030.

    So the safest strategy is to keep your precious Bitcoins no matter what. Becoming a HODLER of last resort is something extremely profitable as shown in this graph:

    Bitcoin Profitable Days

    HODLING Bitcoin has been a profitable strategy 94.1% of the time since its inception.

    Bitcoin rewards people who truly believe in its revolution, and favor long time.

    By keeping 100% of your purchased Bitcoins, you will be one of those people rewarded sooner or later by Bitcoin. I even include here people who bought Bitcoin at $20K at the end of 2017. If they had confidence in Bitcoin by keeping their Bitcoins when the price collapsed in 2018, they will be winners largely in the future.

    It’s all a matter of time, and therefore of patience with Bitcoin. It is up to you to make sure that you develop this essential quality.

    It is one of the 3 essential lessons that HODLING Bitcoin teaches you.

    Conclusio

    The 100–10 rule is a rule that I imagined, and have been applying since I entered the Bitcoin world. Its purpose is to maximize the profits you can make from Bitcoin.

    When I talk about profit here, I mean it in the broadest sense. It includes the financial profits, but also, and most importantly, the profits in terms of the knowledge and open-mindedness that Bitcoin will bring you.

    By using a maximum of 10% of your time to monitor the Bitcoin price, you will have the necessary time at your disposal to better understand the Bitcoin revolution, but also the limits of the current system.

    This will then help you understand why every unit of Bitcoin you buy will be essential in your future. For this reason, you should HODL 100% of the Bitcoins you buy without giving in to the sirens of greed.

    The combination of these two principles makes up the 100–10 rule that will help you maximize your profits in the Bitcoin world.

    Bitcoin HODLER One Day, Bitcoin HODLER Forever

  • Bitcoin HODLER One Day, Bitcoin HODLER Forever

    Bitcoin HODLER One Day, Bitcoin HODLER Forever

    How long do you plan to HODL Bitcoin?

    Illustration by In Bitcoin We Trust

    Bitcoin is an incredible revolution that has been growing block after block before our eyes for over eleven years now. The people who fundamentally believe in the Bitcoin revolution are what we call Bitcoiners.

    These Bitcoiners, of which I am one, believe that Bitcoin is the only cryptocurrency that really matters. The future belongs to Bitcoin, and the other cryptocurrencies will sooner or later see their value tend toward zero. The most obvious proof of the total trust that Bitcoiners have in Bitcoin is the fact that they continue to HODL their Bitcoins no matter what.

    Bitcoiners are HODLers of last resort that allow Bitcoin price not to totally collapse when the least convinced users panic totally as it was the case on March 13, 2020.

    On that black Thursday, Bitcoin price lost more than 50% of its value to reach a low of $3.8K. The strong rebound that resulted is to the credit of Bitcoiners who saw this as a great opportunity to accumulate even more Bitcoins at an incredibly low price.

    Bitcoiners Fundamentally Believe in Bitcoin

    Today, Bitcoin price has gone back above $7K, and those Bitcoiners are rubbing their hands. The number of addresses owning at least 1 Bitcoin in full has risen to over 800K as a result of the liquidity crisis that hit all liquid markets in mid-March 2020.

    The episode of panic that we have just gone through in the Bitcoin world, gold, or traditional financial markets is giving way to a real economic crisis.

    The decisions that are currently being taken by the Fed and other central banks around the world are to conduct a policy of easy money with trillions of dollars being injected into the monetary and financial system.

    The big problem is that these decisions, which devalue what all the citizens of the world own, are taken in a totally arbitrary manner by people who are not elected by the people.

    Thus, in the United States, a powerful minority at the head of the Fed has the power to drastically impoverish all American citizens.

    These easy money policies have been used so much that they are working less and less, making it increasingly inevitable that an alternative to the current monetary and financial system will emerge. In my opinion, Bitcoin is the best alternative we have to opt-out of this system in order to protect what we own.

    As a Bitcoiner, you often say that you are ready to HODL Bitcoin no matter what.

    Often this phrase is used when Bitcoin price drops sharply. You use it to explain to non-Believers why you are not panicking. I myself have often used this phrase with people I know who can’t understand the importance of Bitcoin to the world of the future.

    These non-believers are simply stuck in certain thought patterns that prevent them from seeing beyond the fiat system.

    Let’s Imagine That Bitcoin Price Reaches $100K

    Now, I ask you to imagine for a moment that Bitcoin reaches a price of $50K. When non-believers, biting their fingers for not listening to Bitcoiners, ask you how long you will HODL Bitcoin, what will you answer?

    Better yet, when Bitcoin price may have reached $100K by the end of 2021, what are you going to do?

    Behind this simple question, I would like to lead you to ask yourself about the plan you have for Bitcoin when its price reaches the highs it is promised to reach.

    On forums, I read some pseudo Bitcoiners explain that they will sell a large part, if not all, of their Bitcoins if its price reaches $50K. Others are willing to wait for the price to go up to $100K.

    Finally, some see even further ahead and say they are willing to wait until the price reaches $1 million.

    Come to think of it, I get the feeling that these people are pseudo Bitcoiners who see Bitcoin as just a store of value. They see Bitcoin only as a hedge against currency devaluation.

    Bitcoin Is Much More Than Just a Store of Value

    While Bitcoin does play a role as a store of value to protect your wealth, this role is actually only Phase 1 of the mass adoption of Bitcoin that Bitcoiners are fighting for on a daily basis.

    Phase 2 of Bitcoin adoption is to develop support for Bitcoin among as many merchants around the world as possible. Bitcoin needs to grow to become a true means of exchange, as well as a true means of payment.

    5 Thought Patterns Holding You Back to Buy Bitcoin

    Bitcoin allows you to opt-out of the fiat system to protect what you own today.

    The goal then is to be able to use the wealth you have preserved with Bitcoin to make your daily purchases. In concrete terms, the plan is that one day you will be able to switch from the U.S. dollar and other fiat currencies to live your life on your own terms.

    I realize that there is still a long way to go before Bitcoin reaches this level of adoption. However, remember what Lao Tzu said about this:

    “The journey of a thousand miles begins with one step.”
     — Lao Tzu

    The journey for the full adoption of Bitcoin by the general public will be long, but as Bitcoiners, we are taking the first step by HODLing our Bitcoins no matter what the cost.

    As a Bitcoin HODLer, you need to understand that you are embarking on a journey that will be long.

    As always with Bitcoin, the more patient and resilient you are, the more you will be rewarded. If you support Bitcoin until its price reaches $100K, you will already be greatly rewarded, but you will probably miss out on something bigger.

    That something even bigger than a $100K Bitcoin, or even a $1M Bitcoin, is a Bitcoin that would become a unit of account.

    This is the expected Phase 3 of Bitcoin mass adoption.

    Bitcoin May Become a Real Unit of Account in the Future

    If Bitcoin becomes a unit of account, you will be able to live only by using your favorite cryptocurrency. Your company will give you the choice to be paid in Bitcoin instead of fiat currency.

    Prices for goods and services will be displayed in Bitcoin as well.

    At this hypothetical point in the future, we’d be in the middle of the hyperbitcoinization of the world. Such a hypothesis is getting stronger every day. This hyperbitcoinization would also mean that the U.S. dollar would have lost its place as the only world’s reserve currency.

    By making the decision to HODL your Bitcoins for as long as it takes for Bitcoin to reach this level of adoption, you will be a double winner.

    Firstly, you will be a winner because your unwavering belief in the Bitcoin revolution will have allowed you to see your wealth grow incredibly. Secondly, you will be a winner because you will be able to use your wealth in BTC directly to live your daily life without having to depend on the U.S. dollar or other fiat currencies.

    You will then be totally free to live your life on your own terms. And that freedom will be given to you by Bitcoin, and the Bitcoiners community that has taken it to this level of adoption.

    To the big question of how long I will HODL my Bitcoins, I believe my answer now will be:

    Bitcoin HODLer One Day, Bitcoin HODLer Forever

    I will HODL my Bitcoins until the day when Bitcoin adoption has reached its phase 3, and it becomes possible to live every day using only Bitcoin.

    It’s up to you now. Your answer will help you measure your confidence in Bitcoin. For my part, it is total and unshakeable.

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    , ,

  • 5 Thought Patterns Holding You Back to Buy Bitcoin

    5 Thought Patterns Holding You Back to Buy Bitcoin
    Illustration by In Bitcoin We Trust

    To benefit from Bitcoin, you need to free yourself from these thought patterns.

    The economic crisis that is beginning before our eyes will put the current monetary and financial system to the test. In order to save this system, the Federal Reserve took several extraordinary decisions during the month of March 2020.

    Among the flagship measures taken by the Fed are a historic interest rate cut to zero, an unlimited quantitative easing program, and a lowering of the reserve requirement rate for banks to zero. Other central banks will have no choice but to follow the Fed in these actions by also injecting liquidity into the system.

    All these measures will cause a sharp currency devaluation that will affect what you have in fiat money. In order to avoid being hit too hard by this monetary devaluation, many people explain that a good solution is to switch to the plan Bitcoin.

    Announced for years, the plan Bitcoin is becoming more and more inevitable as inflation of the circulating money supply accelerates. The corporate bailouts that will soon follow will add even more to the need for an alternative plan to opt-out of this totally outdated fiat system.

    While many people are becoming aware of the limitations of the current monetary and financial system as a result of the economic crisis that is starting to unfold, they are still finding it difficult to take the step to buy Bitcoin.

    In my opinion, this blockage comes from 5 thought patterns that prevent you from buying Bitcoin. Here are details concerning these patterns, and more importantly how to change your perception of things to take control of your future.

    #1: You Think U.S. Dollar Is Sound Money

    The U.S. dollar is unanimously recognized as the world’s reserve currency. The dollars you have in your possession give you a sense of wealth.

    For you, the U.S. dollar represents something strong. You are even convinced that the U.S. dollar is sound money.

    I’m going to disappoint you, but that is clearly not the case.

    The U.S. dollar that you idolize so much is not based on anything tangible. In any case, it hasn’t been based on anything since Richard Nixon unilaterally ended the convertibility of the U.S. dollar into gold in August 1971.

    Since then, the United States has not ceased to increase the money supply in circulation, which has de facto drastically reduced the purchasing power of American citizens, but more globally, of people all over the world.

    Represented by the M2 Money Stock USD index, the money supply in U.S. dollar is therefore constantly increasing. The increases in this money supply accelerate when the Fed decides to inject $6T of liquidity into the banking system in a few weeks.

    This totally arbitrary decision of the Fed devalues a little more of what you own, and proves once again, if proof were needed, that the U.S. dollar is not sound money.

    The only strength of the U.S. dollar is the confidence that a majority of people have, or had, in its value. That confidence is slowly eroding. Eventually, an alternative may very well supplant the U.S. dollar.

    Conversely, Bitcoin is sound money.

    The maximum supply of Bitcoin is set at 21 million, and it can never be changed. By buying Bitcoin, you are guaranteed that what you own will never be diluted by increasing the Bitcoin maximum supply.

    1 BTC of 2020 will therefore always be equal to 1 BTC of 2100, i.e. 1 BTC out of 21 million Bitcoins.

    Only Bitcoin can offer you this certainty in the uncertain world we live in. As far as the intrinsic value of Bitcoin is concerned, you should know that as the number of users of its network increases, so does its value. It is only a matter of time before it reaches a level comparable to the U.S. dollar in my opinion.

    #2: You Think Money and Economics Must Be Complex

    The people at the head of the current monetary and financial system, or even economists, are doing everything possible to ensure that the majority of people remain ignorant of the principles of economics, but also of how money works.

    There is a simple reason for this, already mentioned several decades ago by Henry Ford:

    “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
     — Henry Ford

    If all citizens around the world came to understand the principles of the current monetary and financial system, a real revolution would take place immediately.

    The powerful at the head of the system seek to avoid this at all costs by keeping people in the dark.

    In the current situation, there is a good example that is unfolding before our eyes. The Fed is devaluing the U.S. dollar by injecting $6T into the banking system, and at the same time, the U.S. government decided to send all Americans a check for $1,200.

    That $1,200 check represents only $350 billion in total. That is a lot, but very little compared to what is given to the banking and financial system.This check is clearly being sent to citizens in order to calm them down in this difficult situation.

    American citizens will be calmed down with this check, but their poverty situation will not change with only $1,200.

    A real measure would have been to wipe out the student debts of millions of Americans, for example. This is only one example among many, but it shows you that the powerful at the head of the system are primarily trying to keep the masses under control.

    As far as the current monetary and financial system is concerned, it is therefore deliberately made complex in order to take away the idea that people should seek to understand its mechanisms.

    On the other hand, we find Bitcoin which is extremely simple since a 9-page white-paper is enough to describe fully how it works.

    The simplicity and transparency of Bitcoin is such that you can now immediately answer the following three questions:

    • How many Bitcoins are currently in circulation?
    • How are the new Bitcoins created?
    • Can the Bitcoin circulating supply grow indefinitely?

    With fiat currencies, I wish you a lot of courage in trying to answer these questions. Even the world’s leading economists disagree on the answers to these questions. This shows how unnecessarily complex the fiat system is.

    By choosing Bitcoin, you will understand that a payment system doesn’t have to be complex. Everyone needs to be able to understand how it works so that they can control what happens really in the system.

    #3: You Think You Have No Alternative to Current Monetary and Financial System

    De facto created by Richard Nixon in August 1971, the current monetary and financial system was legalized following the Jamaican agreements in January 1976. This system is now clearly showing its limitations. Inequalities in wealth between the very rich and the poor have never been greater.

    A majority of people are aware of the dysfunctions of the current system, but a majority also think that there is no alternative to this system.

    It is a totally false thought pattern that locks you into this fiat system. In reality, this 49-year-old system is just one experiment among many. It is currently showing its limits.

    An alternative will emerge one day or another as it has always done in the history of humanity.

    Created at the end of 2008 following the previous global banking and financial crisis, Bitcoin is clearly a credible alternative to the current monetary and financial system. It is the best option we have at our disposal to prevent against the failures of the current system.

    Whether you believe in Bitcoin or not, I think that buying even $100 is a good way to manage your risk in the best possible way.

    Sooner or later, you will join the Bitcoiners as you realize that the current system cannot continue like this. However, it is an individual awareness that allows everyone to switch to Bitcoin.

    The Decision to Buy Bitcoin Depends on Individual Awareness First and Foremost

    For some people, it takes a long time to break this thought pattern. Others understand quickly that Bitcoin is a credible alternative to the fiat system.

    #4: You Think a Monetary System Must Be Centralized With a Leader

    The generation you belong to greatly influences your perception of Bitcoin. Most of the leaders of the world’s major economic powers are either Baby Boomers or members of Generation X with a Baby Boomer mentality.

    Baby Boomers place a very high value on hierarchy. They are reassured by the vision of a great leader who makes decisions for everyone else.

    In fact, the current monetary and financial system that sees a minority of people who are not democratically elected making decisions for a majority of people suits them completely.

    However, it is not inevitable. A payment system does not necessarily need a trusted third party to function properly.

    Bitcoin is a living example of this. For more than eleven years, Bitcoin has worked perfectly in a decentralized way, without any leader. Bitcoin is a true democracy in the sense that all evolutionary decisions are made by consensus within the community.

    Satoshi Nakamoto gave Bitcoin as a gift to humanity so that no one can claim Bitcoin as his own.

    Bitcoin belongs to all its users. Bitcoin will succeed if its users can make it a success. This last point is essential to understand. Bitcoin is an experiment that has been going on for eleven years and is getting stronger as new users gain confidence in its network.

    Once Bitcoin has been in existence for more than 20 years, nothing can stop it, as more and more people will realize that a decentralized, leaderless system can work very well.

    Each new block added to the Bitcoin Blockchain in a secure manner is one more step in breaking the thought pattern of people who think that centralization is a necessity. Time is clearly on Bitcoin’s side.

    #5: You Think Others Must Be Responsible for Security of What You Own

    This fifth thought pattern is the logical continuation of the fourth thought pattern that I have just outlined to you. People who think that a payment system must necessarily be centralized with a trusted third party guaranteeing the security of the network also think that it is up to others to guarantee what they own.

    Bitcoin is a total paradigm shift from the current monetary and financial system.

    Bitcoin empowers you by giving you the ability to live on your own terms. No one can censor your transactions, or confiscate what you own in Bitcoin. However, the freedom Bitcoin gives you comes at a price.

    The price for being free to regain control over your wealth is to secure what you own.

    With Bitcoin, it is up to you, and you alone, to look after your money. If you lose the 24 words seed to restore your hardware wallet, you’ll only have yourself to blame. If you fall into a scam when making a transaction to a suspicious person, it will be your fault.

    Remember that Bitcoin teaches you to develop your critical thinking skills.

    This means that you become your own bank with Bitcoin. There are no guarantees other than yourself. It is up to you to make the right choices, and to protect what you own.

    In my opinion, it is a small price to pay to regain full control and ensure a better future where you will no longer be subject to the arbitrary decisions of a few powerful people at the head of an outdated system.

    Conclusion

    Bitcoin is the biggest technological revolution since the Internet was first introduced. Everyone agrees on this. This would almost make some people forget that this Bitcoin revolution goes far beyond technology. Bitcoin is a complete paradigm shift that has strong ideological and social impacts.

    In order to best benefit from the Bitcoin revolution, you need to be able to move beyond certain thought patterns that lock you into the current monetary and financial system.

    If you can truly understand the goals of Bitcoin, you will be able to move beyond those thought patterns. You will then be able to use Bitcoin as a way to opt-out of a fiat system that is reaching its limits more and more every day after 49 years of experimentation.

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