Why Bitcoin Is a Purely Trust Issue
BTC unique power is to be unrelated to FIAT currency
A small kid in any undeveloped country has more information through a cell phone now than Bill Clinton did in the 1990s.
Although we tend to think things are not okay worldwide, people live longer and healthier than ever before. Technologies and innovation provided us, humans, incredible quality of life.
However, there is one thing that hasn’t seen many signs of progress as technology thrives- the monetary system.
All dollar processing today is pretty much the same as it was 100 years ago. And if you think that the dollar bill you have from 1901 from your dearest collection is worth a lot of money, you’re wrong.
Even a coin from the Roman Empire from the year 30 A.C. worth less than $1. You know why? Because there are millions of them around the world. Something central banks always did and kept doing is printing so much money that its abundance makes it worthless.
It’s unfair for everyone who worked hard to live in a system where its time and effort are continuously devalued.
We don’t have any control over the supply of money.
So, if my parents saved their lifetime and effort to provide me a good saving structure, and I see it losing 10 to 15% a year of its energy power to inflation and to money printing, something is fundamentally wrong.
It’s ironic and somehow revolting to hear central bankers tell us about the importance of money. Especially when the only beneficiaries of this printing mania are the top 1% wealthier.
Central bankers have so much power that they are the ones who determine the value of our net worth.
And it was in the middle of the chaotic 2008 crisis that bitcoin emerged.
Yet, a 13-year-old technology is young enough to create doubt and disbelief. In our human behavior principles, we often resist change. And that’s okay.
However, in this transformational era, it’s always better to be an early adopter. And also to protect ourselves from the devaluation process we’ve been subjected to.
Why is Bitcoin a pure trust issue?
Trust Takes Years to Build, Seconds To Break, and Forever To Repair
Many countries haven’t already recovered from the Great Recession of 2008. In Portugal, we were wiped out of our independence when the IMF ruled our finances for 4 years. Our Greek brothers suffered even worse humiliation.
What happened to all those people responsible for the derivatives and CFDs orgies?
Nothing.
They all went back to play the same game as always, keeping the benefits for themselves. And increasing the gap between the richest and the poorest.
At that time, people completely lost their faith in their governments. Nothing was the same after 2008.
Today, more and more people see Bitcoin as the new gold. It’s the next safe-haven in a corrupted system that undervalues our time and energy.
Bitcoin trust
Unlike printing dollars and euros, the most crucial trust proof Bitcoin offers people is the limited supply. Only 21 million Bitcoins will be produced until the year 2140.
Unlike central banks’ oligarchy, all the more than 2 billion human beings called the unbanked will have the chance to transact cryptocurrencies. Also creating value to their energy, time, and work, through a simple cell phone.
Only 20% of people that live in Africa have bank accounts. But fortunately, two-third of them have access to cell phones.
Cryptocurrencies are different from current money because they are regulated by mathematics (or more commonly called- the code). The software that executes this code runs simultaneously on computers around the world.
Even if one or more of these computers is misused in an attempt to corrupt the bitcoin network (such as to steal money), the collective action of the others ensures the integrity of the system as a whole.- Ari Juels and Ittay Eyal in the conversation.com
The wealthiest 1% have 82% of the world’s wealth. Just last year, billionaires increased their collective net worth by 762 billion dollars. That’s enough to end extreme global poverty 7 times over. It’s disquieting to know these numbers.
It’s ridiculous, as human beings, to be complicit in such a phenomenon.
I’m a capitalist and believer in free markets, but this inequality is unspeakable.
Capital elitism should come to an end as everyone gets access to cryptocurrencies in the long run.
New fintech bankers are those who suffered the 2008 consequences. New fintech bankers are those who saw their parent’s savings vanish by the arrogance of the oligarchs. These bright young entrepreneurs are the first believers in the cryptocurrency system. They believe in a suitable alternative against central banks’ monopoly.
Young entrepreneurs use the code and mathematics as their weapons to fight inequality.
At first, the creators, then the early adopters, then the mainstream, all start to believe.
Michael Saylor, the CEO of Microstrategy, understood the intrinsic libertarian power of Bitcoin. And put in his company’s balance sheet close to 1 billion dollars in Bitcoin.
After Saylor came Elon Musk with 1.6 billion dollars. Also, hedge fund managers like Paul Tudor Jones and Stacey Druckenmiller allocated 1% of their portfolio in BTC.
Five thousand years ago, before gold had two parties trusting each other, the rest of the world trusted in shells, spices, or direct exchanges.
Only when too many people started to trade gold, the trust issue was solved.
With Bitcoin, we’re facing the same phenomenon. Of course, there will always be resistance.
First, by those who have the power and do not want to lose it.
Second, by those who are accommodated to the system and often resist changes.
Once you understand Bitcoin, you start to understand everything else. Then you see how ridiculous this system is. Once I believe in Bitcoin, I started to believe in my freedom. We deserve to be free because we were born with that freedom. Nobody was born to be own by anyone else. And Bitcoin gives us that right back.- Dan Held, Growth Lead at Kraken
Final Thought
The definition of trust:
The firm belief in the reliability, truth, or ability of someone or something.
If more and more people have a firm belief in Bitcoin, the trust issue is solved.
Many industries are being completely disrupted by the power of technology. Bitcoin is the most reliable digital asset ever invented. And it was built on the blockchain, where every monetary energy will be conceived in the future.
My common sense tells me this is the logical evolution.
I don’t believe in Bitcoin as a religion or sect. But I study technology disruptions all the time. I’ve been seeing companies disrupting entire sectors of industries. Amazon did it with the front stores. Google did it with libraries and video. And Facebook did it with our network.
It’s a reality, not fiction.
Bitcoin has a market cap of near 1 trillion dollars. It’s going to soar and get gold at 10 trillion. And then it will disrupt the entire monetary system. This is the natural course of things.
If it happens, we will embrace deflation and abundance. The code is more reliable than central bankers. It will bring more justice between parts.
What if, instead of trying to stop deflation at all costs, we embrace it? As technology spreads, deflation happens at the rate it should. Deflation becomes something celebrated because it means that we are getting more for less. We allow ourselves to accept abundance. Along that continuum, as technology removes jobs and fewer overall jobs are needed, prices will keep falling, allowing those who lose jobs a way to share in the benefit of technology abundance without massive transfers of wealth.- Jeff Booth in The Price of Tomorrow.
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