The Bitcoin Advantage

Screenshot 2020-01-30 at 14.34.30Bitcoin is not regulated as it is not considered to be a currency according to the law. How can this be an advantage you may ask?

If that is truly your concern I am sure you think that all governments are transparent and honest, that the world has no corruption and that economies are never manipulated. If that is your opinion then please stop reading this article now, as you will be severely disrupted.

Bitcoin was created due to the Global Financial Crisis of 2008, when the creator Satoshi Nakamoto realised that normal people needed a safe haven from financial storms. The first Bitcoin was mined in 2010 and 10 years later in 2020 there is more and more interest in Bitcoin, and it continues to strengthen. Not only has it become stronger amongst computer geeks but it is constantly the talking point of governments, banks and authorities worldwide.

How can something that is not considered to be a currency pose such a threat to the global policymakers? More and more authorities are recognising the potential of Bitcoin and the possibilities that Bitcoin could be a dominant currency in the very near future.

Traditionally central banks and governments have full control of currency and they can print as much currency as they wanted. This action of introducing new money into the economy devalues the currency and allows inflation to become the accepted norm in society. Inflation results in everyone having less value from their money, and forces people to look for credit to try to make ends meet.

Bitcoin on the other hand has a limited supply, there will only ever be 21 Million Bitcoin. So instead of just printing or mining more (as in the case of Bitcoin) as increasingly more people need Bitcoin, the finite supply has an de-inflationary effect in that the value of Bitcoin rises instead of decreasing.

Bitcoin vs Friends and Family – you will wonder why I have added this sub title. The answer is simple, when you talk to your friends and family about Bitcoin the responses will be varied, from those who know everything to those who know nothing. Those that know nothing but have heard of Bitcoin are usually the worst as they would have probably heard something negative about Bitcoin, like it is used by terrorists and drug dealers. These people keep forgetting that terrorists and drugs have been around for decades, and you have to wonder if people believe every bit of propaganda coming from the mainstream media.

Of course the other consideration is that when you tell your friends and family about Bitcoin, they may just be incredibly jealous and hope that they can discourage you. Even if they never plan to buy Bitcoin, they would rather discourage you, just in case you become the next Bitcoin millionaire!

Bitcoin and Tax – I am not a tax expert and Bitcoin is not taxed. However when you sell your Bitcoin for normal currency and you have made a profit you will need to declare the income and thus pay tax. If you are unsure of the tax situation with Bitcoin, please speak to a qualified tax professional.

Bitcoin is the future and it would be to your advantage to consider having some Bitcoin. You can buy as little or as much as you want. It is estimated that about 27 Million people own some Bitcoin and currently there are just over 18 Million of the 21 Million Bitcoin that will ever be in circulation. Imagine when more people adopt Bitcoin, the demand will rise and the price of Bitcoin will skyrocket.

Currently $200 is about 0.02137614 Bitcoin and owing that much Bitcoin has the possibility of changing your financial future as the price of Bitcoin continues to rise. Some experts in the industry are predicting that a single Bitcoin that is worth $9,400 currently could be worth $50,000 to $100,000 by the end of the year.

Other predictions are putting Bitcoin at $1,000,000 within the next 10 years. This means that the Bitcoin you have today that is valued at $200 could easily be worth $20,000 in the next 10 years.

Bitcoin is definitely something worth considering.


About RichSimmondsZA

Retired but still Disruptive
This entry was posted in Inspiration, Social Finance and tagged , , . Bookmark the permalink.

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