The unsolvable question: What is Bitcoin?

(First of all, this report will not manage to explain the complexity of Bitcoin in detail. The report is intended to help governments understand how Bitcoin can help a nation.)

Technological progress has moved us forward as humanity. We had to invent technologies that made us faster, stronger and smarter. There were key technologies that advanced us as humans and share many similarities with Bitcoin. Technologies dominate today because they create progress in the form of focused energy, harder, stronger and faster than ever before.

Bitcoin is harder, faster, and safer than any monetary network we’ve ever had. Bitcoin is an electronic bearer asset and an open source monetary system. When you combine these two unique functions, you get a technology that achieve cash finality with final settlement anywhere in the world at any time (24/7/365) rated in any currency pair you want.

“Bitcoin is a technology, it is a currency and it is an international network of payment and exchange that is completely decentralized. It doesn’t rely on banks. Bitcoin represents property and freedom to eight billion people. An unknown person named Satoshi Nakamoto created a computer program that would run into distributed fashion on computers all around the Earth. And that program creates twenty-one million virtual coins in cyberspace. He created a perfect digital gold on an open monitoring network. And so that means if you wanted to save a thousand dollars and you wanted to have it beyond the reach of everyone else, and you wanted to have personal custody of it, you could have that with Bitcoin. Bitcoin is a technical solution to give eight billion people property rights. “& “Bitcoin is savings technology. Bitcoin is conservation of energy. Bitcoin is the most secure, reliable, certain thing in the economic universe. “& “I see a world where 8 Billion people have a mobile device, they have a digital mobile wallet and they have Bitcoin. Bitcoin links together 8 Billion people. It synchronizes the world across different political jurisdiction and it returns rationality to the entire financial system. It will return freedom and property to the human race. “ — Michael Saylor

“Bitcoin, as a monetary network, compared to the Square Network or the PayPal Network or the Visa Network, retains all the properties required to give a great financial experience and it’s also inherently global and it’s extremely inclusive. One of the things that’s great about this network is it works everywhere, and so you can give people in El Salvador that don’t have a way to invest or generate yield on savings, for example, the best savings instrument of all time. You can give them connectivity and final clearance and cash finality in transacting without the need of trust, credit, counterparty risk, or any form of counterparty assessment with someone in America, and do free and instant remittance. You can give them an experience like a P2P digital social payment application. These people don’t have P2P like Venmo or Monzo or Cash App; they don’t have savings accounts that they can invest in stocks or in high-yield products like Bitcoin; they don’t have access to remittance. The remittance story here that I’ve been told is it’s about a half day’s shore trip; it’s about a six-hour, in total, trip to Western Union to physically collect the cash. We think there are probably about 4.5 billion people that don’t have the same level of financial access that everyone else does.” — Jack Mallers

Bitcoin for Georgia

What works in El Salvador works everywhere in the world. Bitcoin’s impact on emerging markets is explained using the example of Georgia, a country with 3.8 million inhabitants who have an average age of 38. The unemployment rate is 13%. 50–70 % of the workforce is self-employed. Georgia is sparsely populated. More than a quarter of the population lives in the capital region around Tbilisi, other large cities are Batumi, Kutaisi and Rustavi.

“Georgia is a small transitional market economy of 3.7 million people with a per capita GDP of $4,764 (2019). Georgia is located at the crossroads between Europe and Asia. Its strategic location makes it a natural logistics and transit hub along the “New Silk Road” linking Asia and Europe via the Caucasus.

The Georgian economy is growing steadily, but external shocks in the region, such as international sanctions related to the Russia-Ukraine conflict, have had a negative impact on Georgia’s economy and contributed to a relatively low growth rate of 2.9 percent in 2015 and 2.8 percent in 2016. However, in 2017, 2018, and 2019, the economy grew by 4.8, 4.9, and 5.1 percent, respectively. While economists expected a 2020 growth rate of over 5 percent, the COVID-19 pandemic negatively affected the country’s economic prospects and economists now project a 5 percent contraction.

In June 2014, Georgia signed an Association Agreement (AA) and Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU). Through reduced tariffs and the removal of technical barriers to entry of exports to the EU, the DCFTA gives Georgian products access to over 500 million people in the EU. Reciprocally, products from the EU now have easier access to the Georgian market. The government is in the process of approximating EU legal and regulatory standards.

Georgia’s successful economic reforms are reflected in its rankings by reputable international organizations. Georgia ranks 7th in the 2020 World Bank’s Ease of Doing Business index, 12th in the 2020 Economic Freedom Index, and 74th out of 141 global economies in 2019 Global Competitiveness Report. According to Transparency International, Georgia has the lowest corruption rate in the region and International Credit Rating Agencies (Fitch, Moody’s Investors Service and Standards and Poor’s) rate Georgia as a stable country.

Georgia remains an attractive market among countries in the region. The government has increased its focus on developing the infrastructure, energy, tourism, and agriculture sectors and has received substantial support from international donors.”

“The region of present day Georgia contained the ancient kingdoms of Colchis and Kartli-Iberia. The area came under Roman influence in the first centuries A.D., and Christianity became the state religion in the 330s. Domination by Persians, Arabs, and Turks was followed by a Georgian golden age (11th-13th centuries) that was cut short by the Mongol invasion of 1236. Subsequently, the Ottoman and Persian empires competed for influence in the region. Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918–1921) following the Russian revolution, it was forcibly incorporated into the USSR in 1921 and regained its independence when the Soviet Union dissolved in 1991.” — https://www.cia.gov/the-world-factbook/countries/georgia

A series on bitcoin for nations: Part 2
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