As more people discover Bitcoin, they’re beginning to understand its unique value. Bitcoin stands out as an exceptional tool for saving money, potentially even the best form of money we’ve ever seen. Since its creation in 2009, Bitcoin has defied the sceptics who initially doubted it. Today, it has established itself as a significant player in the financial world, demonstrating its importance and resilience.
Understanding Bitcoin as a Simple Journey
Learning about Bitcoin can be like going on an exciting journey. At first, many people didn’t believe in Bitcoin and even made fun of it. They thought it was just a risky trend or something bad people might use. But as time went on, the people who got into Bitcoin early started making a lot of money. This made others curious about it.
For example, in 2010, one bitcoin cost just 8 cents. Now, in May 2024, one bitcoin is worth over $70,000! Because of this, many people have become millionaires and even billionaires. Bitcoin has shown everyone that it can be very valuable.
Bitcoin: From Doubts to Trust
As people learn more about Bitcoin, they start to see it as more than just a risky bet. It becomes a real and valuable asset that can protect them when regular money systems have problems.
For example, by the end of 2021, the world owed a huge amount of money—$292 trillion! This, along with rising prices that make things cost more and weaknesses in how we usually handle money (called Keynesian economics), makes people look for other options. Bitcoin stands out because it is decentralised (not controlled by any one person or group), scarce (there’s only a limited amount), and can’t be easily stopped or controlled.
This makes Bitcoin a strong and appealing alternative to regular money systems.
Why Bitcoin is Great for Saving Money
People who really understand how Bitcoin works see it as a great way to save money. It keeps its value and even gets more valuable over time. This is different from regular money, which can lose value because there’s so much of it.
Bitcoin is special because there will only ever be 21 million bitcoins. Right now, more than 19 million bitcoins have already been made, so there aren’t many left to be created. This limited number makes Bitcoin valuable and helps it keep getting more valuable over time.
This makes Bitcoin a great choice for saving money and protecting what you have.
Changing How We Think About Bitcoin
When people really understand Bitcoin, they stop thinking of it as something to buy and sell quickly to make a little money. Instead, they see it as a great way to save money for a long time, like a bank account that doesn’t lose its value.
Michael Saylor, the CEO of MicroStrategy, said, “Bitcoin is the king of assets.” This means it’s the best thing to own. When people realise this, they don’t want to sell their Bitcoin for quick profits anymore. They want to keep saving and holding onto their Bitcoin because it’s a better way to protect and grow their money.
Why Bitcoin is the Best Asset
1. Scarcity: Bitcoin has a set limit of 21 million coins that can ever exist. This makes Bitcoin rare and keeps its value strong, especially as more people want it.
2. Decentralisation: Bitcoin works on a system where no single person or government controls it. This makes sure that no one can easily stop it, take it away, or change it unfairly.
3. No Borders, No Permission Needed: Bitcoin can be used anywhere in the world without needing permission from anyone. You can send and receive it without having to go through anyone else, which means you have control over your money.
4. Cannot Be Changed and Easy to Understand: The Bitcoin blockchain keeps a permanent and clear record of all transactions, showing how everything happened and making sure the network is honest.
5. Divisibility: Bitcoin can be split into smaller units known as satoshis, which makes it possible to use for tiny transactions. This feature increases its convenience and usefulness as a currency that can be easily exchanged.
(Disclaimer: The opinions expressed in this column are those of the writer. The facts and opinions expressed here do not reflect the views of www.bitcoingambia.org.)
Reference: EconomicTimes
