Hodl Hodl
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Hodl Hodl

Bitcoin as a global reserve asset

And the slow emergence of a truly international currency

The narrative regarding Bitcoin’s value proposition has evolved over the years. It was born, in the words of Satoshi Nakamoto, as “A peer to peer electronic cash system”, and it remained so until the first collaborators of the project began to notice that the natural evolution of development, following the game theory that it proposes, would, in the future, make Bitcoin a form of a digital store of value, something similar to gold but in an intangible format. And indeed, that began to happen a few years later.

The fact that the Bitcoin protocol over time is designed to become the scarcest entity ever known, as discussed in a previous article, brings up Gresham’s Law, which postulates that it is preferable to use a bad currency for daily purchases and keep the best currency, in this case, Bitcoin, as a store of value.

“The bad currency always drives the good one out of circulation”

As a result, knowing that Bitcoin is the best possible currency, given its predetermined and immutable issuance and its ability (now undisputed) to remain live for centuries, it will be used mainly as a safeguard asset of long-term value since the inability of the world’s governments to keep their currencies stable is well known nowadays.

The decreasing and incorruptible rate of the monetary issuance of Bitcoin, and its ability to be sent and received anywhere in the world in a few minutes (or seconds if moved over the Lightning or Liquid Network) at negligible costs, also gives Bitcoin an enormous appeal for individuals and companies to use it as a medium of exchange. Therefore, in addition to gradually becoming the refuge of value per excellence, Bitcoin also has the potential to become the ideal currency for international trade.

And since Bitcoin remains in constant development, given the nature of its open and free source, that can be contributed by anyone with the necessary skills to improve and expand the system, today it can already be used as a fast payments network, using the previously mentioned second-layer protocols.

But why would someone want to make payments with a currency that does not stop increasing in value over time? The answer is simple: Those who have reserved value in Bitcoin for a sufficient number of years have multiplied the purchasing power of their holdings several times, making small payments today irrelevant in economic terms and highly favorable in terms of usability — even knowing that what they are paying today would be even cheaper in the future.

“When someone lives within the Bitcoin standard, prices do not stop going down year after year”

Providing everyone the ability to reserve wealth in Bitcoin is one of our long-term goals. For that reason, Hodl Hodl offers the necessary tools to gain access to Bitcoin among peers without the need for bureaucratic requirements and useless complicating procedures.

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Global P2P Bitcoin trading platform that doesn’t hold funds

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Hodl Hodl

Hodl Hodl

P2P cryptocurrency trading platform that doesn’t hold funds

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