Bitcoin View

By now 2025, most people in the world will have heard the word Bitcoin, it is a blockchain with its crypto currency BTC was born in 2009 after the real estate and financial crisis of 2008, some banks went bankrupt taking with them the savings of all their users, so it does not matter how big and powerful a bank is, but if you consign your savings, money from your work or business in one of its accounts, that money is not yours, it belongs to the bank 100%, they can block your bank account and if it goes bankrupt you lose all your money.

During the financial crisis most governments had to reach into their pockets to help many financial institutions get ahead, to achieve this most democratic governments never authorize a Bail-in; this is when banks keep the money of all their users and use it to save the bank from bankruptcy and regardless of the needs of their savers, this move is very dangerous since in the short term it can lead to a social outbreak, therefore the most popular option is a Bailout which is when governments take money from taxes paid by taxpayers and transfers it to companies or in our case to banks in crisis, this generates discontent, anger and unrest among citizens since the money given to banks should be used to build new schools, hospitals, roads etc, therefore many governments to calm the waters turn on the money printing press and when this happens inflation always increases and our currency loses value.

After the 2008 crisis, governments increased or created a new guarantee fund to return part of their money to savers in the event of a bank failure. In the US, the government pays savers up to US$250,000; beyond that, they lose the money. In the European Union, it’s up to 100,000 euros. In the United Kingdom, it’s up to 85,000 pounds. Now you understand why millionaires never keep money in banks.

In 2009 there was already a technology that few or no one used, the Blockchain and from there the Bitcoin blockchain was created, the creator or creators left a manifesto that a maximum of 21 million of their cryptocurrency BTC could be created, this Bitcoin blockchain is the most secure in the world for being the most decentralized of all and they do it through miners or mining companies (people or companies that validate transactions and create blocks) for which work they receive BTC as a reward.

In the Bitcoin blockchain there is a process called Halving, which every 4 years the creation of the BTC cryptocurrency is reduced, this causes the currency to become even scarcer, causing the economic effect that with greater demand and less supply the price rises. 4 years ago I said in a blog that the price of 1 BTC would reach 1 million dollars, but many already predict that in 20 years the price per 1 BTC could reach up to 10 million dollars, when the last BTC is created, the 21 millionth in the year 2140, I can’t stop imagining the price of 1 BTC.

The truth is that most people buy BTC as digital gold and so that inflation does not affect them, it is just a matter of leaving the currency in a crypto wallet and waiting for it to go up, but this panorama is already changing, now many companies receive BTC as a means of payment, El Salvador is the first country to receive it as a legal form of payment and more countries will come, in several nations people sell even their properties receiving BTC as payment currency, and very soon the bitcoin blockchain is going to take a big turn since Bitcoin is a first generation blockchain, it does not have an established Smart contract, it has joined with the third generation Cardano blockchain, for which anyone with BTC can use their coins to do De-Fi (decentralized finance), this is going to make a great push to attract more people and institutions and of course the price of both blockchain will be with horns; the bull.

The main creation of Bitcoin is so that people have their finances not controlled by any bank or government, that each one is responsible for their currencies and is their own bank without intermediaries and so that inflation does not steal the value of the currency, many investment institutions such as Blackrock were forced to invest in Bitcoin and Ethereum ETFs because their clients demanded it, the CEO of JP Morgan a few years ago spoke ill of Bitcoin, today he accepts it, he no longer does and his bank is considering purchasing the BTC ETF.

The US government has declared that it will use BTC as its primary digital reserve, followed by four other reserve cryptocurrencies: ADA, XRP, ETH, and Solana. If the US does so, other countries will follow suit.

During the pandemic crisis, most countries in the world borrowed money like crazy or turned on the money printing press. This caused double-digit inflation in most countries alround the world, causing all national currencies to lose significant value, which did not happen with BTC.

In CONCLUSION, cryptocurrencies are here to stay, and blockchain even more so; only skeptics don’t believe in them.

NOTE

-I am not promoting the sale or purchase of any digital asset.

-This blog is based 100% on my knowledge and experience; no AI has been used.

h.g.menco