The Wright brothers discovered flight on December 17th, 1903.
It was not until May 1908 when people discovered human flight was possible. Four and a half years after the Wright’s first flight. That’s when the world finally woke up.
Innovation gets slow marketing. Though existent, it isn't acknowledged. Bitcoin is one of them.
Hedge fund managers have figured Bitcoin out. They've become pro-crypto as a result. I've joined the same boat.
Money is a social scalability solution. A shared endeavor where people participate repeatedly. This leads to a social belief for a medium of exchange.
Here's how a Netflix movie discusses a medium of exchange
"What is a medium of exchange?
Well, it could be a... a nugget of gold.
Or some other shiny rocks that are generally found to be scarce.
It could be a... a slip of paper - with words on it..."
We had the barter system in the past. There’s slips of paper in the present. Digital currency will be the safest medium of exchange for the future.
There's (b)itcoin, the electronic currency. Then there's (B)itcoin, the backend protocol which defines the currency. Those algorithms are defined in Bitcoin's whitepaper:
- Peer-to-Peer Networks - Trust between two parties and no central authority
- Proof-of-Work - Miners run powerful computers in the network to validate transactions. The security for tampering is incentive to mine more bitcoin.
- Distributed Ledger - history of every transaction validated in the Blockchain.
The above leads to the reason why hedge fund managers are attracted to bitcoin.
Like shiny rocks, bitcoins are:
- Scarce - Fed printers can't inflate them
- Durable - you can't damage software
Unlike shiny rocks, bitcoins are:
- Easily portable - transferred electronically
- Divisible - into trillionths if required
- Verifiable - through the distributed ledger
- Difficult to counterfeit - practically impossible
- Easy to store - electronic
- Fungible - every bitcoin is equal
Here’s what makes fund manager's mouths water:
bitcoin is inflation-free.
I gave my pals some advice this week. I advise you the same:
My main argument to buy bitcoin:
Bitcoin can have value anywhere in the world and is immune from hyperinflation. Its value doesn’t depend on a central authority and it's basically money for the internet. I've figured this out late from early adopters, but it's not too late.
It's smart to be the person who realizes air travel exists in 1905 rather than 1908. Bitcoin provides that opportunity.
I believe owning Bitcoin will give you an edge over others who don't. It has a chance of becoming bigger than the US dollar itself. So why not take that bet?
Which is why I part with useful (otherwise simple) advice:
Buy bitcoin and forget about it.