Thank you for explaining 'halving'
Thank you for explaining 'halving'
Before I start, I'm just going to be frank - I'm just writing from scratch here. This will likely be unorganized and verbose (as is my style, pretty much).
Let's start with Bitcoin:
Why is Bitcoin important? Well, to be blunt about it, it utilizes a decentralized ledger to maintain integrity of the market. But why is that important? It's simple, the FED simply prints money with no value to back it (not anymore). Compared to Bitcoin, its value is quite literally zero. Yes, POTUS was wrong, Bitcoin is certainly valuable. This is proven by Maths. Albeit, Maths I don't understand, but Maths nonetheless. Whereas Fiat is currently backed by debt (which isn't money or any value, as pointed out in previous videos I posted here), Bitcoin derives its value from mathematical computation. Unlike Fiat, Bitcoin is created by miners, whose machines preform said mathematical computations to be allotted a value of BTC (the symbol for Bitcoin) equivalent to the amount of work preformed in order to process said computations. But, let's not get in to the real tech side of things (mainly because we're nearing the extent of my understanding of the background work of the currency). The way Bitcoin compares to Fiat, then, in that respect, is that Fiat is simply printed (like Monopoly... literally) on papers where the process of adding more currency to the pool of circulation of Bitcoin works in the way described above. Unfortunately, the FED controls the monetary system of our country and this is why you get in trouble for writing your own IOUs on papers, but they don't, as explained in the first post of this sub. Remember, since Bitcoin is decentralized, it means governments can't control it (for the most part) and that any individual can't necessarily make too big of waves in terms of the stability of the market (although there's some argument over this, but I'm not really interested in that as it seems of little relevance to this conversation).
Now, we understand why Bitcoin isn't Fiat, but why the hell would you use Bitcoin? Well, once Credit collapses, as Bill Holter explained, you probably won't have much of a choice if you want anything that's not local (maybe even after we create a new currency it can still be useful, but I have no clue how that will work as that's a bit outside of my scope... at least currently). See, right now this point is meaningless since you can still just use Credit, but we'll get to that in a minute. Anyway, it's got other use cases, namely anonymity. But, that's not all - we haven't even mentioned why Bitcoin really shines. See, every four years the network reduces the reward for work preformed to mine the currency (basically just like printing fiat equivalent). This means that, as the reward for mining decreases, miners will no longer be willing to sell their BTC at prices as low as they are currently since the amount they can be rewarded will be reduced the further we get in to the future. It's simply supply and demand, but it should suffice to say scarcity is where BTC will continue to develop its value from - as BTC becomes harder to accrue through not simply purchasing more, the value will increase because more people will be looking to HODL (hold their shit instead of selling it). This obviously means Bitcoin will only increase in value over the next 120 years (unless it's replaced, obviously). This process has only occurred twice and the next one will occur next year (some time in late July, I believe).
What happened last "Halving", as the process above is referred to, was somewhat unforeseen. It was less than $600 when the halving was initiated, roughly July of 2016. By the end of 2017, it peaked somewhere just over $13,000 - roughly 21.5x. Just for reference, if we saw a 21.5x right now, the price would be roughly $215,000. This increase in value helps convey that it is worthwhile in addition to helping you become "bankless". A big point of what I'm doing is trying to help you fight against the bank. We've already covered how their collapse is imminent, but you could easily be preparing right now, as well as protecting your personal information. See, most don't know this, but you can connect a Bitcoin wallet (how your personal BTC is stored) to a Visa card using a service like BitPay. Don't misunderstand, there's no reason to trust the company, but that's why you only put in what you need and keep the rest of your BTC in a secure and personal location. So, you don't even need to worry about Credit collapsing because you have the means right now to live without it.
So, we've covered what separated Bitcoin from Fiat, what sort of use cases it has, how valuable it is and could be in the future and even ways you can use it to become "bankless", but we haven't explained another big thing in the crypto world: other tokens/coins. Now, I don't want to get in to this part too much because it's quite muddied. "Coins" or "Altcoins" are coins other than Bitcoin whose blockchains were derived from Bitcoin. Tokens are simply cryptocurrencies that make use of a coin's platform and make use of some sort of functionality within that blockchain. But, like I said, I'm not going to be very good at explaining this part so I won't go much further. Frankly, me bringing up alts is only really important insofar as you could make money off of them by riding what's called "altseason". Right now, people that know what they're doing are "in the accumulation phase" with these alts, in anticipation of the coming "altseason". But, what is "altseason"? Well, when money surges in to Bitcoin, other coins and tokens see some of the spread of value flooding in to the crypto market. That's all the more complicated that it needs to be made. I won't help you with your research in this area, however, so asking me where to put money is a waste of time (but I don't exactly expect you to ask something like that. this is just a warning). What you need to do, however, is find out which projects have good tech and invest in those. Trying to read charts and shit is pointless at this stage. Should you choose to put any time in to this area, please simply ignore most people and buy good tech based on your gut. Do not sprint in to this. Take your time and do your own research. There are golden gems to be found by simply understanding a project's team - which is a great place to start and a minimum criteria for a good buy. Other than this, I don't care to explain alts much.
Why would someone buy alts when they could buy Bitcoin? Well, some alternative projects are very low in value and should the project be successful, they'll grow regardless of altseason. However, during altseason there's significantly more money in the space, so it's best to take advantage of the overall market spiking with a project that could do a 100x or more, whereas Bitcoin is a bit less likely to shoot up 100x. The tradeoff, basically, is some alts could jump from a $2mil valuation to a $500mil valuation during this time, even though it's real resting point could be somewhere around $100mil. Bitcoin, however, is already in the hundreds of billions of dollars in terms of valuation. Frankly, seeing something go from single digit millions to hudnreds of millions is significantly more likely than something jumping from hundreds of billions to trillions. It's just math...
tl;dr:
Bitcoin actually has value and Fiat doesn't, just like Fiat compared to precious metals, which I also suggest you buy.
Bitcoin can be used in place of a Credit card or Debit card, so that banks have less control over you and so that you have an alternative to Credit should you need one, going right in line with Jim's advice to be your own bank, as you saw in the video with Jim and Bill I previously posted.
You have a year or so to accumulate Bitcoin before it begins takeoff (probably even less, since it's become more popular).
Alts are a fantastic investment, but you need to do your own research and remember good tech = best returns.
I forgot to add that services like Silver.com will allow you to purchase metals with Bitcoin.
I pretty much just wanted to explain the crypto world here. It's not as scary as many think and blockchain technology could do loads for the world other than just help people retain anonymity or have a backup plan in case credit collapses. I don't intend to tell everyone something they don't know about here, but I wanted to explain things dealing with crypto and how they intertwine with the aim of this sub - to abandon central banking. This was mainly to get dialogue started. I'm mainly looking for questions.
Before I start, I'm just going to be frank - I'm just writing from scratch here. This will likely be unorganized and verbose (as is my style, pretty much).
Let's start with Bitcoin:
Why is Bitcoin important? Well, to be blunt about it, it utilizes a decentralized ledger to maintain integrity of the market. But why is that important? It's simple, the FED simply prints money with no value to back it (not anymore). Compared to Bitcoin, its value is quite literally **zero**. Yes, POTUS was wrong, Bitcoin is certainly valuable. This is proven by Maths. Albeit, Maths I don't understand, but Maths nonetheless. Whereas Fiat is currently backed by debt (which isn't money or any value, as pointed out in previous videos I posted here), Bitcoin derives its value from mathematical computation. Unlike Fiat, Bitcoin is created by miners, whose machines preform said mathematical computations to be allotted a value of BTC (the symbol for Bitcoin) equivalent to the amount of work preformed in order to process said computations. But, let's not get in to the real tech side of things (mainly because we're nearing the extent of my understanding of the background work of the currency). The way Bitcoin compares to Fiat, then, in that respect, is that Fiat is simply printed (like Monopoly... literally) on papers where the process of adding more currency to the pool of circulation of Bitcoin works in the way described above. Unfortunately, the FED controls the monetary system of our country and this is why you get in trouble for writing your own IOUs on papers, but they don't, as explained in the first post of this sub. Remember, since Bitcoin is decentralized, it means governments can't control it (for the most part) and that any individual can't necessarily make too big of waves in terms of the stability of the market (although there's some argument over this, but I'm not really interested in that as it seems of little relevance to this conversation).
Now, we understand why Bitcoin isn't Fiat, but why the hell would you use Bitcoin? Well, once Credit collapses, as Bill Holter explained, you probably won't have much of a choice if you want anything that's not local (maybe even after we create a new currency it can still be useful, but I have no clue how that will work as that's a bit outside of my scope... at least currently). See, right now this point is meaningless since you can still just use Credit, but we'll get to that in a minute. Anyway, it's got other use cases, namely anonymity. But, that's not all - we haven't even mentioned why Bitcoin really shines. See, every four years the network reduces the reward for work preformed to mine the currency (basically just like printing fiat equivalent). This means that, as the reward for mining decreases, miners will no longer be willing to sell their BTC at prices as low as they are currently since the amount they can be rewarded will be reduced the further we get in to the future. It's simply supply and demand, but it should suffice to say scarcity is where BTC will continue to develop its value from - as BTC becomes harder to accrue through not simply purchasing more, the value will increase because more people will be looking to HODL (hold their shit instead of selling it). This obviously means Bitcoin will only increase in value over the next 120 years (unless it's replaced, obviously). This process has only occurred twice and the next one will occur next year (some time in late July, I believe).
What happened last "Halving", as the process above is referred to, was somewhat unforeseen. It was less than $600 when the halving was initiated, roughly July of 2016. By the end of 2017, it peaked somewhere just over $13,000 - roughly 21.5x. Just for reference, if we saw a 21.5x right now, the price would be roughly $215,000. This increase in value helps convey that it is worthwhile in addition to helping you become "bankless". A big point of what I'm doing is trying to help you fight against the bank. We've already covered how their collapse is imminent, but you could easily be preparing right now, as well as protecting your personal information. See, most don't know this, but you can connect a Bitcoin wallet (how your personal BTC is stored) to a Visa card using a service like BitPay. Don't misunderstand, there's no reason to trust the company, but that's why you only put in what you need and keep the rest of your BTC in a secure and personal location. So, you don't even need to worry about Credit collapsing because you have the means right now to live without it.
So, we've covered what separated Bitcoin from Fiat, what sort of use cases it has, how valuable it is and could be in the future and even ways you can use it to become "bankless", but we haven't explained another big thing in the crypto world: *other tokens/coins*. Now, I don't want to get in to this part too much because it's quite muddied. "Coins" or "Altcoins" are coins other than Bitcoin whose blockchains were derived from Bitcoin. Tokens are simply cryptocurrencies that make use of a coin's platform and make use of some sort of functionality within that blockchain. But, like I said, I'm not going to be very good at explaining this part so I won't go much further. Frankly, me bringing up alts is only really important insofar as you could make money off of them by riding what's called "altseason". Right now, people that know what they're doing are "in the accumulation phase" with these alts, in anticipation of the coming "altseason". But, what is "altseason"? Well, when money surges in to Bitcoin, other coins and tokens see some of the spread of value flooding in to the crypto market. That's all the more complicated that it needs to be made. I won't help you with your research in this area, however, so asking me where to put money is a waste of time (but I don't exactly expect you to ask something like that. this is just a warning). What you need to do, however, is find out which projects have good tech and invest in those. Trying to read charts and shit is pointless at this stage. Should you choose to put any time in to this area, please simply ignore most people and buy good tech based on your gut. Do not sprint in to this. Take your time and do your own research. There are golden gems to be found by simply understanding a project's team - which is a great place to start and a minimum criteria for a good buy. Other than this, I don't care to explain alts much.
Why would someone buy alts when they could buy Bitcoin? Well, some alternative projects are very low in value and should the project be successful, they'll grow regardless of altseason. However, during altseason there's significantly more money in the space, so it's best to take advantage of the overall market spiking with a project that could do a 100x or more, whereas Bitcoin is a bit less likely to shoot up 100x. The tradeoff, basically, is some alts could jump from a $2mil valuation to a $500mil valuation during this time, even though it's real resting point could be somewhere around $100mil. Bitcoin, however, is already in the hundreds of billions of dollars in terms of valuation. Frankly, seeing something go from single digit millions to hudnreds of millions is significantly more likely than something jumping from hundreds of *billions* to **trillions**. It's just math...
tl;dr:
Bitcoin actually has value and Fiat doesn't, just like Fiat compared to precious metals, which I also suggest you buy.
Bitcoin can be used in place of a Credit card or Debit card, so that banks have less control over you and so that you have an alternative to Credit should you need one, going right in line with Jim's advice to be your own bank, as you saw in the video with Jim and Bill I previously posted.
You have a year or so to accumulate Bitcoin before it begins takeoff (probably even less, since it's become more popular).
Alts are a **fantastic** investment, but you need to do your own research and remember good tech = best returns.
**I forgot to add that services like Silver.com will allow you to purchase metals with Bitcoin.**
I pretty much just wanted to explain the crypto world here. It's not as scary as many think and blockchain technology could do loads for the world other than just help people retain anonymity or have a backup plan in case credit collapses. I don't intend to tell everyone something they don't know about here, but I wanted to explain things dealing with crypto and how they intertwine with the aim of this sub - to abandon central banking. This was mainly to get dialogue started. I'm mainly looking for questions.
(post is archived)