I called this post “Big Daddy Bitcoin” because Bitcoin is the OG Crypto Currency.
Also because it will probably make maxis happy and they will read my content.
Tweet after tweet I read how “Bitcoin is the Truth in a chaotic world and the solution to all of our problems.” Bitcoin is not going to give you your girlfriend back, but it might get you a model or someone interested only in money. I believe you ladies are smarter so this does not apply to you.
In 2016-2017 I aped into Bitcoin and yes I did not HODL my larger position. I traded in and out. Made beer money and then boom!!!!
2017-2018-2019 happened. The crypto great depression happened and everything that I got almost went to 0. However I kept putting in some money in during those years. Do I regret it? HELL YES!!! Don’t ever believe anyone who says they don’t regret being a millionaire at a young age.
The reason I am saying all this is because there are people that made it, people that got scammed, and people like me. Some made it, some went home crying, and I just stayed invested. At the end of the day this did more than I thought it would do. Yes I didn’t make large sums of money, but it eventually got me wondering why BIG BANKS and Governments were bashing BIG DADDY BITCOIN.
Why though? Bitcoin does not have a CEO, does not have a product, its just magic internet money. Bitcoin is essentially software running code on a network of computers called nodes. Well this software allows value to be transferred in a borderless, trustless and decentralized manner. With 21 million coins and a predictable money supply it is one of the hardest assets out there. Why? Because does not devalue/debase its currency as a central bank and it is secured by hundreds of thousands of nodes .
In a world where money is inflated by governments to pay for government programs, fund wars, and exert power….Bitcoin does have a use case. That use case is to transact freely away from fiat (paper money) and in a manner that you can interact with people and exchange value without borders.
But wait there’s more as explained from the high priest of orange coinville:
“As money, Bitcoin achieves two objectives; it’s both a unit of transaction as well as being a store of value. The U.S. dollar, for example, is a unit of transaction, but it is not a store of value. ” -Max Keiser
This means one single asset, Bitcoin can not only work as money, but only serve as a place to save. If you held onto Bitcoin since 2015 until the high of 2021 you would’ve been about 196 times up from your original investment.
This beats stocks, gold, real estate and commodities. Anyways let’s go back to the main question….so why are major institutions (not hedge funds or asset managers) afraid of bitcoin? Because in an ideal world they cannot take a cut of it.
Let me explain: if you save money at a bank, the bank uses that money and lends it out at an interest rate to earn more money. If a merchant allows you to use a card, the payment processor takes a cut to earn money on that purchase. If you buy a good and pay sales tax, the government has a right to collect that tax.
With Bitcoin you pay a minimum transaction fee collected by miners (aka payment processors) and transfer your value without going through a bank, payment processor, or government agency.
At the same time the government’s decision on borrowing, taxing, issuing money does not affect bitcoin.
With Bitcoin you can really be your own bank, be free, be sovereign, and hopefully be rich.
Next up I will really take a dive on the tokenomics, the mining ecosystem and on crypto custody….there is so much to unpack so thank you for reading my informal thoughts on BIG DADDY BITCOIN and HODL or stay behind!!!