Last time, we got really deep with the transformative power Bitcoin has and what it realistically takes for everyone to live in a better world. Today, we keep on going, heading steadily towards our 20th fact.
Still, if you want to know why Bitcoin is the most credible and trustworthy currency in the world and where this transparency stems from, we advise you to go back and read the previous parts of this series. Now, let’s see why….
16: How Bitcoin is inherently different from central banks
While we did talk about different terms Ray Dalio used to describe free markets in the previous articles, now is the time to bring them all together and see how they can help us contrast Bitcoin and the central banks.
So, last time we introduced the idea of meritocracy, which Dalio defines as a combination of radical truth, radical transparency, and believability-weighted decision-making that essentially comprise free markets. What this entails is truthful price signals, a transparent and reliable rule of law, private property rights, and hard money, which we all defined in detail in previous parts of this series.
Now, how do these terms stand in comparison to central banking?
First of all, central banks broke many of the principles that define free markets because central planning goes against free-market dynamics. Untruthful price signals, obscurity, lack of consensus and unreliability in terms of rules and related criteria, marginalized private property rights, confiscation of people’s wealth through inflation, poor decision-making and massive society structural issues are main descriptors and issues pertaining to central banks.
Bitcoin, on the other hand, is reflected through absolutely truthful price signals. Moreover, Bitcoin is even more scarce than gold and we’ve learned before that scarcity is a crucial factor for any medium to move price signals. Bitcoin is also defined by transparency and reliability in terms of rule of law. Private property rights are equally honored in the case of each Bitcoin market participant. As we discussed before, Bitcoin is unlimited, meaning that wealth can’t be violently taken away from anyone. What is more, Bitcoin is absolutely hard money as well as incentives to keep each participant as invested as ever in maintaining the system functioning properly.
17: Bitcoin cannot be affected by central planning
Unlike the macro system that governs fiat currencies, Bitcoin is unencumbered by central planning and thus central banks have no power over Bitcoin. It is a free market that is, hence, impervious to the inconsistencies inherent in central banks, predictions, and monetary policies.
Even when digital currencies are launched in all parts of the world, Bitcoin will remain the one true vehicle through which people across the globe will be able to carry out free trade without the scrutiny of political agendas and manipulation.
18: Bitcoin should be a long-term plan
Central banks are heavily buying gold, creating a hedge against other currencies. Last time we described how this works in detail, but today we want to stress the fact that you should really be following what the big banks are doing.
— because if central banks are unaffected by their own bad decision-making and are drowning the people deeper and deeper into unemployment, homelessness, and poor living conditions, Bitcoin should serve as a means to escape the future of all those people whose entire wealth is their monthly paycheck.
Bitcoin is still not widely penetrated and you could too hold one of the most valuable assets that can provide you with stability and relieve you of volatility.
It is a wise investment for the sake of your own future and the future of anyone you know because it is not just a lucrative investment but also a culture that should be spread globally.
19: Bitcoin equals healthy culture
Last time when we talked about how Bitcoin participants are all incentivized to keep their game up we wanted to give you room to think about this principle.
Interestingly enough, ancient Roman architects had to abide by the law when providing their services. They were required to be joined by their family members in an act of proving that their work is of good quality by standing under the arches together.
When we think of a central bank, we can’t think of any incentives or disincentives that would control their work quality. However, when we look at Roman architecture, we can still see intact 2000-year-old arches that stood the test of time.
This is what Bitcoin has to offer as well.
20: Bitcoin‘s track record is pristine
Bitcoin’s performance so far has been nothing but impeccable. For more than 10 years now since its inception, we have tracked over 99.99% uptime. What is more, the Bitcoin system has never been hacked nor endangered, and it now stands as one of the most secure and reliable computing networks in the world. Its market value is soaring and owing to its scarcity, it can do nothing but skyrocket even farther in the future.
Now, this may be the end of our series on Bitcoin, but this is surely not the end for Bitcoin. We may have shared with you some of the most amazing facts on Bitcoin but the story of Bitcoin will surely generate more stories in the future that will have lasting effects on the world.
The potential of Bitcoin becoming the next global reserve currency is real and we may see Bitcoin one day become a unit of account. Its history has taught us to trust it and its path of creation is so unique that there is currently nothing we can compare it to.
As Victor Hugo said, Nothing is more powerful than an idea whose time has come. Bitcoin’s time has come and the reasons not to join the Bitcoin community is becoming fewer and fewer by the day.
The power of Bitcoin does not lie just in the prospective monetary gains but in what it has to offer to the world in terms of living conditions as well. The economy is not there to hold your hand and help you grow but Bitcoin is and Bitcoin can.
As we’ve shared earlier, it just takes a couple of hundreds of hours to your lasting financial freedom. Start learning about Bitcoin today for a better tomorrow and always consider assets that have similar properties as the ultimate hedge against wealth deterioration.