Billionaire investors already know it, Bitcoin and cryptocurrencies equal financial freedom.
📚 After spending more than 2 years as a full time crypto enthusiast, learning about blockchain, programming and all the possible ways to make money investing into this groundbreaking technology I think I can finally explain its importance in easy to understand terms.
By the end of this post you will not only clearly see the implications of Bitcoin and its technological stack but also understand that this is just the beginning. Investing your time into learning about crypto and implementing your knowledge will bring you closer to financial freedom than anything else.
So what is Bitcoin ❓❓❓
Bitcoin, the first (and so far the biggest) successful cryptocurrency has been developed using 4 major technologies:
- Blockchain (a way to store and transfer data in blocks that are connected to each other using cryptography)
- Peer-to-peer technology (anyone in the world can be a part of this network in contrary to traditional server-client internet infrastructure)
- Cryptography (used to connect blocks and verify transactions)
- Consensus mechanism (the way network participants determine the true state of the blockchain)
It’s mysterious creator Satoshi Nakamoto described it as a A Peer-to-Peer Electronic Cash.
Satoshi wanted to create a sound internet/network based money that would be an alternative to the broken fractional reserve monetary system that we have been using for so many years.
The benefits of using this technology will be shown best by using a comparison table 🚀🚀🚀
|CRYPTO VS BANKS||Banks and traditional financial system||Bitcoin and cryptocurrencies|
|If you want to open account||You have to apply for it first, then sign many documents and then pay for it on monthly basis (only after the bank allows you to have an account)||You download one of many free wallets and you’re good to go in minutes. Anyone in the world can do it! A mobile phone with internet access is all you need (think about billions of unbanked people)|
|If you want to take your money out||If it’s a small amount you can use an ATM. If it’s more than a few grand you have to call the bank earlier and ask them to get it ready for it, answering million questions on the way||You own your assets and control your wallets. No one can block your funds and they are always available for you|
|If government wants your money||They will just do it, like in 1933 when US President Roosevelt signed the Executive Order 6102 confiscating all the gold that US citizens had at this time||You control your money and no-one can take it away. Only a person who knows the private keys can access and move the assets these keys control|
|If you want to transfer money||You have to fill out appropriate paperwork and pay for the transfer. If you’re sending money abroad it might take a week or, in some cases even longer||Simply choose the address you want to transfer money to and hit send. Depending on the network, transferring money around the world can literally take seconds and cost as little as one cent|
|If you want to move with all your wealth to another country||It will take you months or years to organize it and you will have to pay horrendous taxes on the way and fill out hundreds of documents||You just move, your cryptocurrencies are always there for you.|
|If you want to make interest on your money||You will get up to 1% a year if you’re lucky…||You can get anywhere from 15% a year on less risky accounts to thousands of percent in more risky innovative tools|
As you can see, cryptocurrencies allow us to build platforms that create value for their users, unlike our outdated, centralized and corrupt institutions that not only take all the profits to themselves but also keep a tight control over our assets. What is more, money is only one use case for this innovative technology because cryptocurrencies are more like a platform that you can build upon. Most of blockchain based solutions have in common these important specifications:
- accessible to anyone (you can use it without asking anyone for permission, in contrary to traditional systems like banks or centralised applications)
- very secure (no one ever hacked bitcoin and the bigger the network grows the more resilient it gets)
- have no central control over it (there is no bureaucracy nor fraud and participants are the ones profiting the most)
- Are immutable (after each block is connected to the blockchain its contents cannot be changed – the true history of the chain is cast in the stone for anyone to see)
Most cryptocurrencies use some kind of a mix of blockchain, peer-to-peer technology, cryptography and consensus mechanism, always looking for ways to improve and provide more value to the users. The amount of innovation in this space is just mind-boggling, as crypto created more innovative solutions in one year than the whole financial system in the last century.
The crypto space is where the internet was at the end of the 1990s, this is just the beginning. Mark Cuban, Kevin O’Leary and many other bright investors have been dipping their toes in this space for a while already. You don’t want to be late for the party, do you? After spending thousands of hours researching and learning about this space I still can’t even imagine how it will reshape our lives within the next 10 years. We are still very early and whoever decides to learn about it now will reap huge rewards in the future.
I help you to understand how blockchain works, guide you to first profits & share tips about how to create passive income by investing in crypto!