The perfect Bitcoin one-pager for Precoiner
Bitcoin is currently the most important technology and asset due to its unique properties
Bitcoin is a scarce digital asset and technology with an unchangeable monetary policy. Like gold, bitcoin doesn’t rely on a central issuer, can’t have its supply manipulated by any authority, and has fundamental properties long considered important for a monetary good and store of value. Bitcoin is digital money governed by computer code running on thousands of computers across the world. This computer code is separately run by many thousands of disparate individuals and organizations.
Due to the Proof-of-Work consensus mechanism bitcoin establishes a connection between the real & digital world. As energy can not be created nor destroyed, you can not cheat. You have to spend the work (in the form of energy consumption) to bring the energy into the bitcoin network. Bitcoin, as money, is backed by this work done to mine new bitcoin. In practice, it makes sense for energy to be the monetary backing of an economy because it is the very foundation of the known universe.
Its rate of inflation is currently 1,76% and decreasing, ultimately to zero over the next hundred years. Only 21million BTC will ever exist, with ~18.8million in existence at the Block Height 694.754. But being digital, bitcoin adds capabilities that are especially relevant in our modern electronic times. It is fundamentally independent of the fiat money system, yet is a liquid, globally tradeable asset. Bitcoin is extremely easy and cheap to “transport”, and trivial to verify its authenticity. BTC is convertible to over 150 national currencies 24/7/365, and can be self-stored or custodied with 3rd parties with or without multi-sig.
Bitcoin can be traded on venues ranging from peer-to-peer services, to large regulated US institutional brokerages and exchanges. When you want to use it, you can connect your wallet software (on your smartphone) to the internet and let it talk to the bitcoin network as a whole. Bitcoin solves the problems of the other digital payment systems by being a “push” system, vs credit cards’ “pull” system. When you use bitcoin online, you “push” the payment to the recipient, vs. giving the recipient your secret (e.g. a credit card number) and having them “pull” the funds from your account by using the secret. This fundamental difference vs. all other digital payment means, plus bitcoin’s open and programmable nature, make it uniquely fit to be the “currency of the internet”.
Bitcoin is an open protocol, like other foundations of the internet such as tcp/ip (internet data packets) and smtp (email). The main layer in Bitcoin (Blockchain) is now optimized for security and scarcity (sound money). The rules on the Bitcoin network are set in stone. This is the reason why Bitcoin is migrating to a multi-layer ecosystem. Many developments are now already running on the second or third layer. It has different layers that build on each other but they are ultimately secured by the base layer. For example, with the Lightning network, you can make borderless microtransactions in real time without any costs. Everything can now be built on top of it, because Bitcoin is money that is software.