January 2021

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24 January 2021

8 ways to start as an entrepreneur

Introduction

It’s time to start our second pillar focused on the entrepreneurial side to adopt. It is clear that the different pillars are interrelated. If you want to become an entrepreneur, it is necessary to acquire the mind for and therefore to achieve a certain personal development. Besides that, it is also important to learn how to invest the money that your activity will generate otherwise you will remain constantly dependent on it.

Digital entrepreneur?

If you want to become an entrepreneur, you are really lucky to want to start nowadays. Indeed, the internet has changed everything in the world of entrepreneurs. Today, it is quite possible to start a business simply with a computer and an internet connection.

This new possibility of operation has obvious advantages. You can work from anywhere, you can get started with very low or non-existent costs, you can reach the world very easily, etc. But it also has disadvantages. In particular, the fact that given the ease of getting into these businesses, the competition is much more intense. The number of people starting their business has simply exploded. We must be aware of this.

What are the possibilities for a digital entrepreneur?

As I explained, there are a whole series of advantages to this new way of operating. One of them is notably the impressive amount of business possibilities. The Internet is full of opportunities and businesses to exploit. To make an exhaustive list would not be possible because there are so many but I will already mention some of them below. Note that I will not go into details for the purposes of this article. But if you want me to go deeper into a certain subject, don’t hesitate to let me know!

Create an online store

Gone are the days or to start a business, it was necessary to find a place to receive customers, etc. You can quite simply launch your business via your computer thanks to the internet. You can even push the vice further by getting into “dropshipping” where you don’t even have to finance your stocks. No inventory financing also means lower risk if your product doesn’t sell.

Thanks to sites like Shopify, you can launch your own online store from less than 30 euros per month. To this, you should add your advertising costs and this allows you to launch your online store for less than 100 euros.

The good thing about this kind of business is that the potential earnings are limitless. Some people make more than 100,000 dollars a month from dropshipping.

Start as a Freelancer

Another great opportunity is to start as a freelancer. Whether you have a particular skill or want to learn one, freelancing is a very interesting business to consider. If, for example, you have a passion for video editing, why not take advantage of it to earn some income? There are many different possibilities. Whether it’s text translation, article writing or even design creation, you will always find people willing to pay for these kinds of services.

Unlike before, where you had to go around the city’s businesses to try and get contracts. Today you are put in direct contact with the whole world from the comfort of your home. Indeed, thanks to sites like Fiverr, Upwork, etc. you just have to create your profile and offer services and the platform will allow you to be put in touch with potential customers.

Here on the other hand, unlike an online store, your income may have a certain limit. In fact, you have 24 hours in a day like everyone else, and therefore your “production” of services will be limited to your available time capital. If the service you offer takes you an hour, you will not be able to serve more than 24 clients per day (excluding rest, etc.). Which constitutes a certain limit.

Create a blog

If you have a passion, or a keen interest in a particular subject, you are certainly not the only one! There is a good chance that a whole range of people are interested in this topic. So why not start a blog that acts as a “journal” and allows you to share your thoughts and expertise with these people?

For example, in my case, I have a very strong interest in anything directly or indirectly related to financial independence, in particular investments. I mainly use this blog as a journal to share my thoughts on the subject and allow me to further concretize my learning. Because the best way to learn something correctly is to try to make it understood to someone else.

So, you’re going to tell me “Yes, that’s all well and good but I’m here to make money myself and I don’t see how writing articles will help me.”. I fully understand your point, but know that a blog can also be a major source of income. If you write articles that are interesting enough to build some traffic on your blog, you can quite monetize it through affiliate marketing, advertising, or simply the sale of products (ebook, training, etc.). Here, the income possibilities are enormous and limitless.

Write ebooks

Again, I’ll draw a parallel with the past where if you wanted to publish a book you had to go around the publishers at the risk of being rejected. Think of JK Rowling whose Harry Potter manuscript has been rejected more than 12 times. So be careful, I don’t mean to say that going through a publisher has no advantages, if only at the level of advertising and the promotion of the book in bookstores.

But here, I am talking about the publication of ebook and therefore digital book, again, thanks to the internet. You can easily sell these ebooks through the Amazon site and therefore put it in front of a potential of several million buyers, all for free.

Entrepreneur digital - écrire des ebooks

Learn Trading

So this one is perhaps more a choice of the heart because it is a subject that has always interested me. Trading assumes that with a thorough analysis of the stock charts, it is possible to more or less predict the course of a stock’s price. Thus, the objective will be to buy a stock for a short period with the objective of selling it at a profit.

Some people think of trading as “bets” but I don’t agree, once you start to understand the theory and principles, it turns out to be a simple cost-opportunity calculation. It will be all about establishing a trading plan and sticking to it. This therefore makes it possible to minimize the risk and maximize its chances of being profitable.

However, trading requires a certain mind of steel not to let our emotions take over and stick to the initial plan. Let us refer to pillar 1 where we are trying to develop a better mind which could only help us in practice.

I recently started personally learning trading through various readings. Why not think about setting up a sort of trade journal where I will detail the operations I have carried out, the analysis and the conclusion. Do not hesitate to tell me if this may interest you in the comments!

Create an online course

If you feel like a teacher’s soul, and you have skills that you feel you can teach other people, why not create an online course?

The idea is quite simple, it consists of creating a course through videos, PDF, etc. And sell it to people who want to learn what you are offering. So yes, you still need to have some expertise in the field for your product (your training) to be credible and for people to trust you enough to buy it. Imagine if I, who have absolutely no experience in this, offered you training in woodworking. Would you buy it? I doubt.

The best part about this business is that it will generate income for you in a passive way. When creating the training, you will have to put a lot of work, but once everything is online, apart from the possible promotion of the training, it will be passive income that will come in.

Créer une chaîne Youtube

So, reading this can seem quite amazing and refer to a kind of childhood dream that wants to look like the famous Youtubers. But it goes much further than that. It is quite possible to create a hugely profitable business with Youtube and few people realize it.

Once your Youtube channel meets certain conditions you will be able to start monetizing it (by accepting that Youtube put advertisements in your videos). And once your channel is monetized, you can consider all of your videos as assets (I refer you to our article on personal finance to understand this notion). Thus, all your videos, once on the platform, can potentially bring back views on it. Who says “views” says “advertising display” and says “income for you”.

In addition, you can also insert affiliate links in your videos which will also allow you to earn a commission if the seller makes sales through your link.

Respond to online surveys

So I grant you, this solution is undoubtedly the least interesting and the one representing the least growth potential. Nevertheless, we must recognize that answering these surveys can bring in some money which can allow us to launch other businesses. Considering the lower costs of these, it is quite possible. As a reminder, you can launch your own online store for less than 100 euros.

Very clearly, this is not a method that I recommend, nor a method to really become an entrepreneur, but I still wanted to approach it to inform you that this solution exists and can help you out while you start something else.

Conclusion

We were able to explore together different solutions to become what I call a digital entrepreneur. An entrepreneur through the internet. We briefly discussed each of these methods and so you could already see for which you had a certain interest. As explained, I will not go into more detail in the context of this article. But I can easily create one article or several articles to go into more detail in one or the other method. Do not hesitate to tell me if that interests you in the comments!

I would like to end with a very simple little quote that highlights what an entrepreneur is.

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21 January 2021

How to react to a stock market correction?

Invest and Me 0

When we witness a stock market correction, it is difficult to watch these investments fall without knowing how to do anything about it. However, when investing in the stock market, it is crucial to know what to expect and above all to prepare for possible corrections.

A stock price will never go up or down in a straight line. Quite often after a period of prolonged rise or fall, there is what is called a “correction“. We often hear the question “Why is the stock market falling today?” but we very often forget the period of rise which preceded this fall in the stock market.

So, if we agree that this is something regular, it is necessary to understand them but also to know how to react in such situations.

Market correction

Context

We saw it at the end of 2018, at least what I was mainly hearing, we had seen a significant drop in the stock market. And it is true that at that time this correction seemed quite significant. We are still talking about a drop of about 18%. But very often we forget the rise which preceded this fall in the stock market. To quantify it, we were talking about an increase of almost 60% since 2016.

However, when we look a little further we see that we experienced an even greater drop in the stock market at the start of 2020 of more than 30%.

To support my statements, I put below the chart of the S&P500 (index representing the 500 largest American companies).

What is a market correction?

Although this is still quite subjective, we can speak of a market correction when a stock or an index falls by at least 10% from a previous peak. Based on this definition, we realize that this happens quite often. On the S&P500 chart shown above, we can see that these corrections are quite regular.

As explained, the stock market does not just go up in a straight line, it fluctuates over time. So when the stock prices go up everyone is happy, but when they go the other way everyone panics even though a lot of times there is no reason. This generally allows the market to stabilize.

Many factors can trigger a correction. It can come from running a business directly or from a more macroeconomic, more global reason. For example, the coronavirus crisis may have had an impact on the entire stock market.

Tips for performing during a market correction

During a market correction, it’s easy to panic and try to correct your investments. But often, it is worse than better. Indeed, you cannot do anything against the correction. Since these are part of the landscape for any investor, it is necessary to get used to them. But to help you, here are 8 tips for doing the best you can during a market correction

1. Market corrections are frequent

The best way to see this is by looking at the S&P500 chart we were presenting earlier. We realize that this kind of drop in the stock market can happen quite frequently. Moreover, according to Deutsche Bank, a market correction happens more or less every 357 days. We can add to this the study by Yardeni Research which showed that the S&P 500 had made no less than 37 corrections since 1950. It is therefore something regular and therefore should not make us panic too much.

2. Market corrections don’t last long

The good news, and the bottom line, is that 61% of corrections since 1950 have only lasted for 104 days or less. It’s true that, said like that, it might sound like a lot but it’s not like we can avoid them so it’s reassuring to know that they won’t last long.

3. They are difficult to predict

Market corrections cannot be predicted and are even difficult to explain. In fact, it is often only after the market downturn that we can determine the causes. But there are so many components that can cause the stock market to fall that it’s hard to predict. This is more speculative than anything else. For example, the coronavirus crisis was difficult if not impossible to predict

4. They have no long-term impact

Based on the S&P 500 chart, we can easily see that in the end, stock market corrections have no long-term impact. They are even quickly corrected as we can see on the S&P500 chart.

In the end, if you are not a short term investor, there is no need to worry. In addition, you have to think about the reasons why you invested in this company at the base. If nothing has changed in the meantime, there is no reason to worry as the situation is similar and this correction does not change it. So your investments should quickly regain their value and continue to grow.

5. Now is a good time to invest!

For me, this advice is the most important. Rather than seeing a fall in the stock market as a bad thing, it would be interesting to see the benefits we can derive from these events. Especially if the corrections are meant to be repeated. What if, instead of worrying about it, we realize that these fixes are in fact opportunities? Because in the end, that is what they are. They allow you to buy good companies much cheaper!

So yes, I did say that the corrections were not predictable, but why not find out in the meantime to identify the good companies that you would consider too expensive in normal times? The idea is really to have a list of interesting stocks, and to wait for the discount of sorts. Because that’s the way to look at these situations! You have to stop worrying with every fall and instead start seeing the opportunities that are there. On top of that, we have consistently observed a significant and rapid rise after a correction.

So I am not saying that there are no market reversals that could upset the stock market. The market could also simply turn bearish for some reason. It’s always a possibility, but that’s the risk of the stock market in the end. So it’s up to you to see if you’re ready to take the bet or not.

Be fearful when others are greedy. Be greedy when others are fearful.

6. Some stocks are more solid in the face of a correction

So, if despite my various points above, you cannot bear to see your portfolio of stocks decrease drastically, there are solutions to mitigate the effects. First, if you can’t stand these kinds of events, it may be worth looking into other types of investments. Because as explained, it happens quite frequently.

If, however, you want to invest in the stock market, a good idea would be to turn to value stocks (a stock whose price is lower than the fundamental value of the company) or stocks with solid dividends (a stock that has been generating dividends consecutively since a number of years). These tend to lose value more slowly than growth stocks (stocks that are often overvalued following investor expectations).

Conclusion

The key part of this article is really not to worry about market corrections. In the end, the worst thing to do in this type of situation is to sell your stocks for no reason other than the temporary drop in prices. Because that’s when you would lose money. As a reminder, until you sell, you haven’t lost money yet.

The best way to prepare for a correction is therefore to analyze opportunities to buy stocks in the event of a downside. As well as building a strong portfolio that is able to not suffer too much from these corrections. If you are a long-term investor, these kinds of events should not happen to you. The idea here is to really see these fixes as an opportunity to buy at a lower cost!

As a reminder, I am not an investment advisor and my articles are not investment advice but simply analyzes of a situation or facts and the reasoning I derive from them.

And you, how do you react to these stock market corrections? Do you have any other advice to share? Did you learn something? Do not hesitate to share it in comment.

Sources

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19 January 2021

What is Ethereum?

Invest and Me 2

In a previous article, we discussed the interest of Bitcoin and the reasons that could lead a person to turn to this cryptocurrency. But when you start to take an interest in the world of cryptocurrencies you quickly realize that it’s not all about Bitcoin. In particular, there is Ether (ETH), which comes to us from the Ethereum network. While there are a number of similarities between Bitcoin and Ethereum, there are also several differences.

In this article, we will explain a little better what Ethereum is and the differences it can have with Bitcoin but also how to buy Ethereum. Overall, this article should help you determine a potential value for Ethereum and therefore whether you prefer to invest in Ethereum or Bitcoin or even both.

What is Ethereum all about?

This is a project whose idea was originally described by Vitalik Buterin at the end of 2013 and whose project was finally launched in January 2014. Originally, this project was supposed to complement Bitcoin, using Blockchain technology to explore the possibilities even further.

The founding principles of Ethereum are:

Trust
Transparency
Security
Efficiency

These can therefore be transcribed in any service or industry.

Decentralized system

The faults of the centralized system

Like Bitcoin, it is a decentralized system. By this we mean that this system is not governed by a single entity (unlike the majority of current systems). Although this centralization is the most common way of operating today, there are still some weaknesses, it is not without flaws.

First, in a centralized system, a single entity with full power and can impose its own conditions which is not the most optimal. More importantly, if the central system were to encounter a problem, the whole system would fail. Just think about what would happen if Google’s servers went down. The whole system would get stuck.

In addition, this decentralization also has benefits in terms of personal data protection. In the case of a centralized system, all the personal data of customers, employees, etc. is saved on the central entity’s servers. This leaves a greater risk in the event of a computer attack or data breach.

From the point of view of a decentralized system

One of the advantages of Ethereum is that it is decentralized. It is therefore entirely autonomous and is therefore not controlled by anyone. In addition to allowing better autonomy from a control point of view, it also prevents the risk of errors or unavailability of services. Due to its decentralization, the Ethereum network is maintained by several thousand computers around the world which ensure the sustainability of the system if one of them should experience an error.

Applications that do not require a third party

This decentralization has many other advantages. Indeed, the Ethereum network makes it possible to create applications or other content that would be managed on this system. Thus, these applications would not have to comply with requirements that third parties may impose. As examples, we could cite the conditions imposed by platforms such as the App Store or Youtube.

Being able to avoid going through a third party to make your application or other content available also avoids the costs associated with such intermediaries. For example, when you watch an advertisement on Youtube, the platform takes a commission and only gives a portion of the advertising revenue to the creator of the video. In an Ethereum world, all advertising revenue could go to the author of the video. This lack of need for an intermediary implies that there is no supervisory authority and therefore that transactions are carried out directly between the parties concerned.

In addition, since you can create applications on this system, there is no real limit of possibilities because everything can be governed by smart contracts. This opens up the world to a lot of possibilities in the future.

Use of “nodes”

The entire Ethereum network is based on a “node” system. These are people who allow the system to function by allocating the computing power of their computers who will therefore validate the system’s transactions and receive rewards in return (mining system). This aspect of nodes and for that matter one of the big advantages of Ethereum. Before any change, all nodes in the system must agree to each change. This mechanism therefore eliminates the possibility of fraud, etc.

Since December 1, 2020, Ethereum has moved to the 2.0 format. where the way of generating ETH is changed. Indeed, now, it is necessary to block 32 ETH in order to become a node and to be able to become a validator of the network and to receive some kind of interest on these blocked ETH. The interest generated can also be relatively interesting (see below a screenshot of a simulator)

https://www.stakingrewards.com/earn/ethereum-2-0

It is clear that this kind of interest can have an impact on the value of Ethereum and therefore on its price!

Smart contracts

Most of the system and how it works is dictated through what are known as “smart contracts“. By smart contract, we mean a contract that is executed according to a schedule directly in it at the origin of the contract. These serve to automate certain actions / transactions between the parties according to what is scheduled. Once the conditions of the contract have been met, all the transactions / actions contracted are executed.

We quickly realize that this kind of “new generation” contract represents the future. Even if you don’t trust the other person, once the terms of the contract are met, the contract will be executed and does not require the goodwill of the other party.

Plus, it’s all automated in one system. Thus, these smart contracts have much lower transaction and execution costs.

The risk associated with these contracts is a bad coding of them but it is the same for the current contracts as we know them today.

It is really on the basis of these smart contracts and the resulting possibilities that we can estimate the value of Ethereum and its future.

Ether as fuel

Ethereum is more like a decentralized internet. But for such a system to work, it needs resources to run an application, for example. This is why Ether (ETH) was created as the currency / resource to run the system for changes to take effect.

The amount of Ether needed for an operation depends on the computing power and the time required. The problem that we have seen in the past is that this transaction cost can very quickly become significant when there is an overload of the system. But the Ethereum network is constantly improving and this kind of problem has been regulated since.

Bitcoin or Ethereum: what are the differences?

So, I don’t think it makes sense to just start comparing them. Indeed, these two projects have fundamentally different objectives. Bitcoin is used as a system for the exchange of money in a decentralized manner. Ethereum, meanwhile, has used Bitcoin’s blockchain technology by expanding it to create a network. On this network, users have the possibility to create their decentralized applications on the Ethereum Blockchain.

In other words, with the revolution sparked by Bitcoin, people realized that blockchain technology could be used in a multitude of other areas (and therefore not just for transferring money). . The primary purpose of Ethereum was therefore to complement Bitcoin.

Another notable difference is the limit of Bitcoin available. No matter what, there will never be more than 21 million Bitcoin. This limit echoes the principle that Bitcoin is digital gold. Conversely, the amount of Ether available is not limited.

Finally, regarding mining, although it has changed a lot since the introduction of Ethereum 2.0. the contents of the transaction blocks of the two systems are also different. Bitcoin transactions only keep track of transactions that have taken place. An Ethereum transaction can also contain actions to be executed (see smart contracts). In addition, the validation time of a block in the Ethereum network is much faster than that of Bitcoin.

How to Buy Ethereum

The easiest way to buy Ethereum (and therefore Ether) is to use Coinbase. I recommend that you read our article on buying Bitcoin. The method is basically the same and therefore we can use it.

I invite you to use my referral link which will allow you to receive 10 dollars of Bitcoin more if you acquire 100 dollars of cryptocurrency. It’s still interesting.

If you use this link I will also receive a commission as 10 dollars of Bitcoin.

Conclusion

In this article, you have been able to learn more about Ethereum and what makes it such a special cryptocurrency. We were able to understand the difference of this system compared to that of Bitcoin but also of these advantages compared to it. We even discussed how to buy Ethereum.

Hope this may have helped you the best. And you? What do you think? What is your take on the future of Ethereum? Do you have any other questions? Please let us know in a comment!

Source

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17 January 2021

How to increase your revenue with Celsius Network

Invest and Me 2

We had previously mentioned the potential of Bitcoin. But when we dig deeper, we can easily see that the advent of Bitcoin is also leading to a whole series of other projects, notably DeFi (Decentralized Finance) projects of which Celsius Network is a part.

In this article, we will carry out an analysis of the Celsius Network platform which allows us to generate passive income thanks to its Bitcoin and other cryptocurrencies. So, is the Celsius Network platform worth it or not? Please read this article to find out.

What is Celsius Network?

Celsius Network is an application whose idea is an integral part of the DeFi revolution. Their goal is to shake up the financial industry by offering cost-free, cryptocurrency-related banking services.

The company was created in 2017 and aims to assist individuals in the management of their cryptocurrencies. Allowing them access to services formerly limited to banks but this time at no cost. In particular loans to individuals but especially via the interest on your cryptocurrencies. All in an application with very well thought-out ergonomics and design.

Receive 20$ worth of Bitcoin for free using the referral code “Daniego14aa”

The platform covers a whole series of cryptocurrencies, including the most common (Bitcoin, Ethereum, Litecoin, …) but also a whole series of others which will become very interesting when we see that we can earn interest on these different cryptocurrencies.

Borrow money with your cryptocurrencies on Celsius Network

The main objective of the platform is to allow any individual to borrow money using their cryptocurrencies. All at no cost and at fairly attractive rates. For this, Celsius Network, like the banks, will ask for a guarantee in order to give you a loan of money. The advantage here is that this guarantee can be given with your cryptocurrencies.

Another advantage of the platform is that the loan application takes only a few minutes and can be fully managed in the application. As the collateral is made up of cryptocurrencies, there is no need for an analyst to validate your file. This is an algorithm that automatically determines the admissibility of the request. Since all of this is automatic it allows for instant credit demand response.

This platform therefore simultaneously allows two things. First, it allows you to borrow money, which in itself is already a great thing. But secondly, it allows you not to have to sell your cryptocurrencies if you need money.

And that’s the point. If you bought Bitcoin for example, you definitely believe that the value of Bitcoin will increase. Therefore, it would be a shame to have to “sacrifice” these potential value gains for a few purchases. But if you are reading this blog, I guess you have learned how to manage your personal finances better and these kinds of situations should not be familiar to you. In our case, it is rather another possibility of the platform that will interest us and that we will see immediately.

Make money with your cryptocurrencies on Celsius Network

The real interest of Celsius Network for us is this ability to generate interest on the cryptocurrencies that we would keep on the platform. The latter acts like a bank in which you would have deposited your cryptocurrencies in a savings account and which pays you on it.

In fact, you can therefore consider Celsius Network as a savings account in which you place your cryptocurrencies but which will generate much higher interest than what your bank would have generated. These rates fluctuate regularly because they adapt according to supply and demand, we will come back to them later. But, as of this writing, Bitcoin‘s interest rate is 4.74%, Ethereum’s is 5.50%. We are starting to realize that Celsius Network has really interesting arguments.

Celsius Network Rates — https://celsius.network/earn-rewards-on-your-crypto/

Another not insignificant argument, the interest is paid every week. So you get the best out of compound interest. Interest received one week increases the capital base for calculating the following week’s interest, and so on.

I think Celsius Network really gives us the best of both worlds. On the one hand, we keep our Bitcoin, Ethereum and other cryptocurrencies that will rise in value. But on the other hand, we also earn interest on them. So even our interests gain value over time. All of this therefore offers us a new way of generating passive income.

The CEL Token: What if we lowered the interest we pay and increased the interest we receive?

Celsius Network also has a token, the CEL, which is sort of the platform’s cryptocurrency. This is a more utilitarian Token because it will allow you to access rewards and benefits.

The CEL token mainly offers 3 significant advantages:

If you agree to pay the interest on your loan with CEL tokens, you can receive a reduction of up to 30% of that interest.
If you agree to receive your interest on your cryptocurrencies placed in CEL token you can receive up to 30% more interest. Which, if we take the situation of 1000 USD of Ethereum placed but with a payment in CEL, the situation is much more interesting. From 5.50% interest, it goes down to 7.21%.

Celsius Network - Token CEL — https://celsius.network/earn-rewards-on-your-crypto/

To top it off, if you agree to receive your interest payments in CEL, you will receive interest that will increase in value over time. If we look at the evolution of the CEL price over the past year, we notice that it has gone from EUR 0.12 to EUR 4.34, and even up to EUR 5.20 at its peak.

Celsius Network - Coinmarketcap — https://coinmarketcap.com/fr/currencies/celsius/

Receive $ 20 of Bitcoin for free

To top it off, Celsius Network has a referral program. By using my link to Celsius Network and entering the referral code “Daniego14aa” you will receive free $ 20 of Bitcoin as soon as you have deposited $ 200 of cryptocurrency on the platform. As far as I’m concerned, I also receive the same amount so everyone wins.

Conclusion and review

You will have understood it through this article, Celsius Network is a revolutionary platform that will allow you to explode your passive income thanks to cryptocurrencies. We are well aware of the evolution of the current world where the financial sector is gradually being replaced by fintech which completely revolutionizes the way of operating. One can only admire the environment set up by Celsius Network which even seems too good to be true.

I have been using it for over a year, never saw a problem, I always get my interest every week and I can withdraw funds whenever I want. Also, even if it’s a small detail, I love being able to manage everything from my smartphone.

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17 January 2021

Why I invest in Bitcoin

Invest and Me 5

Bitcoin

In recent years, this term has appeared more and more, along with other terms associated with it or other cryptocurrencies. However, I see that Bitcoin is often viewed negatively. Some consider the advent of Bitcoin as a “speculative bubble” which may of course seem true given the movements that the latter has known. Others present it as terrorist money, and so on.

However, it seems that all these detractors have never been interested in Bitcoin in an “intrinsic” way. In the different factors that make Bitcoin a very relevant currency, I would say even more relevant than the currencies we know today.

Most of the material for this article is taken from the “10 million dollar bitcoin end game” video posted by Token Vision. The latter presents a whole series of elements making it possible to support Bitcoin and which can justify rather confusing future values.

Money history

As you probably know, historically we have always relied on gold (and silver) for our trading. Due to its limited presence on our planet, this makes it a rare element that gives it a certain value.

Of course, there are a whole host of problems with gold such as the fact that it is not really easily transportable let alone divisible. One way to solve this problem was to put into circulation coins (gold and silver) which were subsequently replaced by “paper” money but the value of which was still covered by the gold.

However, in 1971, President Nixxon made the decision to remove the dollar from the gold hedge. This allowed the Federal Reserve to have full control over the amount of silver available and therefore also be able to manufacture money out of thin air. Say like that, it already sounds bad enough, but did you know that making money every time decreases the value of our money? This additional manufacture of money dilutes our own money, it is this phenomenon that is found in the end through inflation. During the stock market crash of 2008, and to support the banks in the recession, a significant quantity of banknotes was printed. This caused average American households to lose nearly a third of their net worth.

The problem now is that money is controlled by banks and governments around the world. Which often benefits those in power more. As an example of the effects that this can have on the world, we can cite the example of the hyperinflation known in Zimbabwe. The situation gives rise to astronomical quantities of banknotes in order to be able to buy simple bread or even the creation of banknotes worth one hundred trillion local dollars.

Bitcoin - Hyperinflation — Conference Ted – https://www.flickr.com/photos/jurvetson/3264811316

Did you know that the current US debt of nearly $ 28 trillion, or even the global debt estimated at $ 247 trillion? we can clearly understand that the monetary policy aimed at decoupling the dollar from the value of gold has created a global problem growing day by day.

And Bitcoin in this story?

Presentation of Bitcoin

Bitcoin was created in 2008 by the famous Satoshi Nakamoto with a fully decentralized management system. Each transaction is included in blocks being linked together (hence the name blockchain). All using math and encryption to ensure unison but also block security. The information remains fully accessible to anyone around the world.

Bitcoin can also be divisible up to 8 decimal places called satoshis (named after its inventor – 1 satoshi = 0.00000001 bitcoin).

In addition, there can only be 21 million Bitcoin in the world which reminds us of gold which is also present in limited quantities on earth. This limit can never be changed, which allows us to know the monetary policy which can therefore not be influenced by external actors. The network is secured by so-called miners who are computers of individuals around the world (anyone who wants them) participating in the common block-encryption effort and who, as a reward, like miners receive, not gold, but fractions of Bitcoin (satoshis).

These miners, by allocating the computing power of their computers, make it possible to encrypt and therefore protect networks from attack by hackers. At present, the computing power of the Bitcoin network is estimated to exceed the power of the top 500 supercomputers; which therefore makes it impossible to hack.

Current situation of Bitcoin

It is clear that, as the author of the video explains, Bitcoin is currently quite underrated. It also makes the link with the opinion that people had on the internet in the early 90s. Nobody imagined the importance and the evolution that the internet was going to know.

Another idea is to say that everything is already working very well with the current money so why change? As a reminder, in the early days of the car, people wondered “Why do you need a car? Horses are great.” But do you think that this remark is still relevant today? All the car needed to really get started was infrastructure. We needed roads, gas stations,… Just as bitcoin currently requires infrastructures allowing it to be set up such as the acceptance of payment in Bitcoin by merchants, which is developing more and more. A very strong saying that we find in the video is: “Complaining about Bitcoin now and how slow it is, etc. is like complaining about the internet in the early days for not having Netflix“.

Bitcoin Detractors / Promoters

We also see that many famous people criticize Bitcoin by pushing people to avoid it or even trying to ban it. However, by digging more into these people, we systematically see that these people own stocks or other very important interests in the banking sector which would indeed be undermined by the emergence of Bitcoin. These opinions are therefore, most of the time, biased.

Conversely, in the video, we also find an interview with Robert Kiyosaki (famous author of the book “Rich dad, poor dad”). The latter explains that there are 3 types of money – Subsequently, the latter asks to think about what will still be there in twenty years.

Currency	Future?
Gold and silver	They’ve always been there and it’s not likely to change
Paper Money	I doubt it’s still here 20 years from now
Cryptocurrencies	This is without a doubt the means of payment that we can imagine in the future.

In the video we find several other well-known stakeholders coming to support Bitcoin. During the various interviews, the question of support emerged. Current currencies are supported by financial institutions, by confidence in them. It seems important to remember that it is these very institutions that print as many tickets as necessary for their needs. Conversely, Bitcoin is based on the security of mathematics which ensures that our money can never be diluted by the government. As a reminder, every time tickets are printed, the value of money held by every person across the world decreases.

Bitcoin catalysts

The second half of the video focuses on why the value of bitcoin will experience significant growth.

The importance of the current world debt proves the unsustainability of the monetary system put in place.
Corrupt governments, which, in order to enrich themselves, willfully decrease the value of money by printing more and more money. Some citizens of these countries are already turning to crypto-currencies.
Large financial institutions are starting to join in by opening up the possibility of investing in Bitcoin on their platforms.
Bitcoin is increasingly accepted by businesses as a means of payment. This allows them in particular to avoid the significant costs charged by Visa or Mastercard. Facebook has also announced the launch of its own cryptocurrency (Le Libra). Another example, Samsung has already announced that within a few years, each of its smartphones will have an integrated digital currency wallet.
The fact that Generation Y (people born between the 1980s and 2000s) is starting to get in the game. This generation which grew up in the era of video games, the Internet, etc. The use of digital currencies is therefore inherent to these people because it is an integral part of their daily lives.
Bitcoin also presents an alternative for all people without a bank

Conclusion

It is clear that following these arguments, the idea of investing in Bitcoin seems quite relevant. Despite the high volatility that bitcoin is experiencing, it is nonetheless an interesting investment. Indeed, if, as the video advances, bitcoin were to reach a million dollars in value, investing at the current rate seems wise. In addition, thanks to the development of Bitcoin today, there are more and more ways to generate passive income and compound interest also through bitcoin, but this will be the subject of a future article. Investing in Bitcoin can also come close to passive investing.

However, the challenges and risks associated with investing in this type of instrument must also be taken into account. I do not qualify as an investment advisor and these arguments are presented for informational purposes only.

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