# Why I invest in Bitcoin

## 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.

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.

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.

1. The importance of the current world debt proves the unsustainability of the monetary system put in place.
2. 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.
3. Large financial institutions are starting to join in by opening up the possibility of investing in Bitcoin on their platforms.
4. 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.
5. 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.
6. 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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