The lifecycle of Bitcoin has been anything but boring. At first, it was something hobbyists were interested in, and math nerds got excited about. Slowly, it started to grow and a few people started getting into it for fun. Then people started realising its immense potential, which led to people opening up Bitcoin farming stations, and investing their life savings into it.
The price of Bitcoin kept on going higher and higher – until it didn’t, and a lot of people lost their investments.
When the first crash happened, everyone wrote Bitcoin off. Most publications said that the Bitcoin fad was over. Yet, one look at Bitcoin’s current status and you will realise that it is anything but over. Bitcoin has steadily been increasing further and further, and is promising to become the currency of the future that it was always supposed to be.
There are a few confusions which people have about Bitcoin though; let’s look at some of them to understand why so many people misunderstand Bitcoin.
Bitcoin is not an investment
This is the source of most problems of Bitcoin.
Bitcoin is designed to be a currency, and to be used as a currency. It has never claimed to be a financial security, and it should not be treated like an investment.
There is a lot of money to be made in Bitcoin through investing – but that is just making use of the way the market is going. Bitcoin wasn’t made to be invested in – it was made to be spent.
Bitcoin is needed in the future
Why does Bitcoin keep on growing even though so many people keep trying to suppress it? The simple answer is that the world of the future needs Bitcoin. Governments all around the world have unprecedented power to spy on people and oppress people. In such an environment, Bitcoin presents the one and only way to preserve the freedom to purchase what we want.
The Real Purpose of Bitcoin
In order to understand the real purpose of Bitcoin, let’s look at why it was created. Bitcoin is an intentionally limited supply currency, where the limit is generated through an algorithm. Think of it this way – when gold is found in an area, there is a huge gold rush. Gold is easy to extract from areas near the surface. As people keep mining it, it keeps getting harder to find. Bitcoin does the exact same thing through its algorithm.
However, all of our currencies are controlled by governments. That means that the government can devalue the currency whenever needed. This means that the value of your savings is in the control of the government, and there is nothing you can do about it.
Bitcoin allows us to create a currency that is purely valued by market forces, and no one can come and change its value. It also allows for untraceable purchases, which is a fantastic way to ensure that you can help whoever needs it, without worrying about someone coming after you. Bitcoin offers us freedom and safety, which is why it is here for the long haul.