Be Pragmatic, and You’ll See Why Buying Bitcoin Right Now Is a No-Brainer
Don’t trust, Verify.
After several weeks that some have called boring, Bitcoin has just come out of the $9,000 — $10,000 range in which it was stuck to reach $11,000. A FOMO feeling is even beginning to emerge with a sense of extreme greed that has taken over the Bitcoin market.
All this shows how fast things can go with Bitcoin.
The volatility of Bitcoin that some denounce is not a bug, but a feature that you can make your best ally. The first thing to understand is that this volatility tends to happen in increasingly shorter periods.
Being a Bitcoin HODLer is the best possible strategy
Bitcoin looks boring for weeks, then in 48 hours, it takes 20%. It can also lose 20% over the same period.
It is therefore almost impossible to profit from Bitcoin if you trade and try to target those times of high volatility that are hard to predict. The best option is to become a Bitcoin HODLER as shown in the following chart:
HODLing Bitcoin has been a profitable strategy for 97.5% of the time since Bitcoin’s inception.
By becoming a Bitcoin HODLer and focusing on a long time, you will have a key advantage. Your natural advantage is the time you will be ready to spend on the market. Those who try to time the market take huge risks, and most of the time they will lose money.
Bitcoin sees an increasing number of people, who are opening their eyes to the failures of the current monetary and financial system, coming into its world.
Despite the evidence, many still prefer the U.S. dollar
Despite that, I still hear some people say that they have huge doubts about Bitcoin and still prefer their U.S. dollar. It seems to me that these people have entered into a principled opposition to Bitcoin.
They have been indoctrinated by everything that politicians, central bankers, and economists have told them negatively about Bitcoin. Now, nothing can change their minds. Just reading the word Bitcoin blocks them.
To help these people open their eyes and make a purely pragmatic decision for their future, I will suggest that they forget about Bitcoin and the U.S. dollar for a moment and focus on the facts.
This is like applying the famous Bitcoin motto:
“Don’t trust, Verify.”
Comparing Money A and Money B as pragmatically as possible
For this purpose, I have prepared an illustration highlighting the features of money A and money B.
Here is this illustration:
You will, therefore, be able to take the time to observe the features of each one.
Money A has a limited supply of 21 million units. It is impossible to increase its supply arbitrarily. Its monetary policy was written into its source code when it was designed. This money A is therefore automatic and predictable.
Money B has no supply limitation. At any time non-representatives of the people can increase the supply in circulation. This money B is used by millions of people, but they have no say in the monetary policy associated with it.
A minority of people make all the decisions about this money B. It’s very easy, because it’s centralized.
Money A belongs to all its users
For money A, it’s impossible. It has no leader. It belongs to all of its users. No one user is more important than another in the system that surrounds this money A. Decisions about the future of money A must be made by consensus of its community.
It can be said that money A is a true democracy.
Since it has no leader, money A gives its users complete freedom. No one can prevent them from using their money as they wish. Money A can never be confiscated.
By using money B, you are not in control. You are using someone else’s money. Money B, which is centralized, belongs to that non-representative minority of users who make all the decisions concerning it.
The people who run the system surrounding money B can prevent you from using this money if they wish. They can also confiscate money B from you in a purely arbitrary manner.
Money B imposes constantly changing rules on you
You can’t say anything, because it’s their money, and they set the rules. This centralized model of operation promotes opacity, which leads to greater corruption of the system surrounding money B.
The system surrounding money A is open and transparent. Everyone can find out what is going on in this system. It operates as a public distributed ledger, and so all the transactions that take place in this system are public. This system gives you power.
Money A allows you to resist any kind of censorship.
You can’t be threatened with having your money A took away if you don’t do certain things, or if you say certain things. Yes, you can be threatened, but those threats will be ineffective on you. It’s total freedom that money A gives you.
By its design, money A is impossible to counterfeit. You can easily verify that your money A is authentic. For money B, it’s difficult because it’s easy to counterfeit. Many people try. Some succeed, which further devalues the value of money B.
The system designed around this money B has another perverse effect.
Money A value increases over time, while Money B value decreases over time
Since money B can have its supply increased in unlimited quantities, its value only decreases over time. This money B pushes you to spend the fruits of your hard work or else your purchasing power will melt like snow in the sun.
With money B, it is impossible to favor the long term. So you have no choice.
The supply of money A remains fixed over time. Issuance of new units of money A is based on a schedule known to everyone, which is written in its source code. This schedule will not change.
This has an incredible effect on the value of each unit of money A. Each existing unit becomes more and more scarce over time. Money A gives you the possibility to opt for low time preference. Money A is a saving technology that is to be contrasted with money B which was designed to be spent.
Bitcoin Is Designed to Be Saved, U.S. Dollar to Be Spent
It’s up to you to make the best choice for your future.
You can of course spend money A if you wish. But if you do so, it will be your choice and not an obligation of the system surrounding money A.
Do you opt for Money A or Money B?
Following this quick tour of the features of money A and money B, I’m going to ask you to answer a simple question:
What money would you choose? Money A or Money B?
In other words, are you going to choose a money B that doesn’t belong to you and forces you to live your life in a certain way? Or are you going to choose a money A that gives you total freedom over the hard fruits of your labor?
I imagine you will all choose money A. It’s even a no-brainer.
Working hard and being able to fully enjoy what you’ve earned is something essential. The power must be yours. Power belongs to the people. Money A gives you this power. It is money run by the people for the people.
This is a fundamental difference with money B, which is quasi-private money since it belongs to a minority of people and is used by the people under unfavorable conditions that are constantly changing.
Now that your choice has been made pragmatically without any preconceived ideas, I am going to reveal to you the identity of money A and money B.
Money A is Bitcoin, while money B is the U.S. dollar, or any other fiat currency.
As you can see, you have no reason not to buy Bitcoin except for the negative a priori that the people at the head of the current monetary and financial system have managed to implement in your brain.
Take a step back, be pragmatic, and you will make the right choice for your future. For me, it is buying then HODLing Bitcoin.