The world we live in is more uncertain than ever. This is a reality that many people have rediscovered with astonishment after the covid pandemic that has affected the world since the beginning of 2020.
In this completely uncertain world, however, there are some certainties:
- Central banks will print more and more money out of thin air.
- Governments will borrow more and more money, which will continue to raise publicly the debts of the world's major economic powers.
- Bitcoin detractors will continue to use the same outdated clichés to relentlessly attack Bitcoin.
- The fundamentals of Bitcoin will remain unchanged.
Among these certainties, only one is good for your money future. Bitcoin's fundamentals make it a great hedge against uncertainty .
As for the other three certainties, they give me the impression that we are like Phil Connors, played by the inimitable Bill Murray in the movie " The Groundhog Day ". Every day the same things happen over and over again. We are fighting to improve the current system and make people realize that only bitcoin can get us out of the vicious circle of the current monetary and financial system .
And then, the next morning when we wake up, it all starts all over again. The same people are doing the same completely bogus attacks on Bitcoin. Central banks continue to implement the same monetary policy that has been at the root of all the economic crises we have experienced for decades. Governments continue to increase public debt, thereby mortgaging the fate of future generations.
Among the objections to Bitcoin, there are six that keep coming up. I further propose to show you once more why these objections are completely false. Most importantly, you will realize that the powerful in the current system are using these objections simply to prevent people from taking power over their money by buying Bitcoin.
Bitcoin is a Ponzi scheme
Since its inception, Bitcoin has very often been accused of being a Ponzi scheme by its critics. On the last day of 2019, Tendayi Kapfidze, the chief economist of the largest US online lending marketplace LendingTree, wanted to make a name for himself by stating:
“I am convinced that Bitcoin is nothing more than a pyramid scheme. You only earn money from people who log in after you. "
This attack is nothing new, as it often happens when economists or politicians want to criticize Bitcoin and find no real argument against it. To put an end to this myth now, I suggest you turn to the detailed report on Ponzi schemes, published in 2014 by the World Bank.
This report was written by the highly respected Kaushik Basu, former Chief Economist of the World Bank and Professor of Economics at Cornell University.
In his report, Kaushik Basu specifically says:
“Contrary to popular belief, Bitcoin is not a deliberate Ponzi. And there is little to be learned by treating it as such. Bitcoin's main value may, in retrospect, be the lessons it offers central banks about the prospects for electronic currency and how to improve efficiency and reduce transaction costs. "Kaushik Basu
I think there is nothing more to add. Just read what Kaushik Basu says in his report and even more what he demonstrates. People who continue to think that Bitcoin is a Ponzi scheme in 2021 are clearly misinformed people who you should not waste your time with.
Bitcoin promotes money laundering and illegal activities
The powerful people at the helm of the current system love to trot out this cliché, which is all the rage among the general public. Bitcoin would encourage money laundering as well as the financing of illegal activities.
In early 2021, Christine Lagarde, the president of the European Central Bank, used this objection again at the Reuters Next conference:
"Bitcoin is a highly speculative asset that has had fun business and interesting and completely reprehensible money laundering activities."
A few days later, it was the turn of Janet Yellen, the soon-to-be Treasury Secretary of the United States, to attack Bitcoin and cryptocurrencies, saying that stricter regulation should be introduced as soon as possible:
"I think a lot of cryptocurrencies are used, at least in a transactional sense, mainly for illicit financing, and I think we really need to look at ways we can limit their use and make sure money laundering doesn't happen through those channels . "
Unfortunately for these two people who hold important positions in the current system, Chainalysis released its 2021 Cryptocrime Report at the same time . In its annual report, Chainalysis has just estimated that $10 billion was used for illicit purposes in 2020 in the cryptocurrency world. That's a cut in half from 2019.
It represents only 0.34% of all transactions in 2020 in the cryptocurrency world.
Meanwhile, under the current system, over $2,000 billion is used each year for illegal activities. So sorry to disappoint Janet and Christine , but if they want to tackle the problem of money laundering and the financing of illegal activities, they should look to the US dollar and the euro. Obviously they won't.
Sticking to this estimate of $2,000 billion used annually for illegal activities in the current system means that for every US dollar used for illegal activities, only $0.005 is used for illegal activities in the cryptocurrency world.
This is enough to put a final end to this objection that constantly appears in the mouths of Bitcoin's opponents.
Bitcoin has no intrinsic value
Many detractors of Bitcoin continue to fall back on the charge that Bitcoin produces nothing and that it has no intrinsic value. I even took the time to write an open letter to Peter Schiff in mid-2020 to answer this question about bitcoin's intrinsic value .
Bitcoin has value because more and more users think it has value. It's the same with all fiat currencies. The notable difference is that it is your governments that force you to think that the US dollar or Euro has any value.
With bitcoins it is completely different. Bitcoin acceptance is a matter of trust. Everything is done voluntarily . Therefore, the success of bitcoins is phenomenal from this point of view. If Bitcoin has managed to reach a market capitalization of over $700 billion in early 2021, it is because more and more people are making Bitcoin their number one choice when looking for a store of value.
Bitcoin addresses a need that will continue to grow in the coming years: that of having a store of value to protect the fruits of one's labor from the ravages of monetary inflation in a way that is resistant to censorship.
For millions of people, Bitcoin already has incredible value. This value will only increase in the future as mainstream adoption of Bitcoin as a store of value progresses. The next phases will be that of Bitcoin as a means of exchange in everyday life , and then that of Bitcoin as a unit of account.
It will take time, but the revolution will end in the future. All you need to do is be patient and keep full faith in the Bitcoin revolution.
Bitcoin will be replaced by cryptocurrencies with superior technology
Bitcoin was introduced to the world on October 31, 2008 by Satoshi Nakamoto. Its network officially launched a few weeks later, on January 3, 2009. For twelve years, the Bitcoin network has been running continuously. His technology hasn't changed. Its fundamentals remain the same, which is an incredible strength in a world as uncertain as ours.
For Bitcoin detractors, this stability of Bitcoin is precisely what heralds the coming end of Bitcoin. Listening to them, Bitcoin technology is outdated. New cryptocurrencies are released every day. One of them will eventually overtake Bitcoin.
Many are finally taking the example of Myspace and saying that the network cannot maintain its first-time advantage. Then the arrival of Facebook changed everything. Today, Facebook is the undisputed leader in the social networking world, and Myspace no longer stands for anything.
This example is used often. It is completely false. Bitcoin should be seen as a protocol. Bitcoin is the money protocol for the Internet . It will not be replaced by more powerful technology. Bitcoin will evolve and constantly improve.
Except Bitcoin's dominance is not about its technology, but about its superior monetary qualities . Bitcoin invented digital scarcity. It is based on 3 unique properties never seen simultaneously in a human invention before. Bitcoin is both digital, decentralized and scarce .
No other cryptocurrency can compete with Bitcoin on these three properties. Bitcoin has a unique advantage that makes it stay king no matter what. Furthermore Bitcoin is unique because it puts people at the center of the system .
Bitcoin is too volatile to be a reliable store of value
Bitcoin volatility is a feature, not a bug. It comes from the fact that Bitcoin is the only truly free market in the world. Its network is always running and its users have the freedom to find the equilibrium price of Bitcoin. There are no circuit breakers in the Bitcoin world like there are in the stock market.
In fact, its volatility is higher. Once you understand that this volatility is part of the game, you'll be able to turn it into your greatest ally. .
The best way to take advantage of this volatility in the price of Bitcoin is to automatically buy Bitcoin in DCA (Dollar-Cost Averaging) mode. Then you will need to become a Bitcoin HODLer . To do this, you need to really understand why Bitcoin, which will help you develop a long-term vision.
Anyone who has a long-term vision for Bitcoin will eventually benefit from it. It's all about time, patience and trust. Since 2010, the price of Bitcoin has risen from less than 0.1 to over $34,000 at the time of writing. Bitcoin is the best store of value available to the greatest number .
The trick is to understand how it works to take advantage of Bitcoin.
As the market capitalization of Bitcoin increases, this volatility will tend to decrease, encouraging the use of Bitcoin as a medium of exchange in everyday life. After that we will be in phase 2 of Bitcoin mass adoption. Most importantly, by that time Bitcoin will have caught up and then surpassed the market cap of gold. It's only a matter of time because Bitcoin's success is inevitable .
Bitcoin will be banned by regulators
Opponents of Bitcoin keep saying that if Bitcoin gets too big, it will eventually be banned outright by the regulators of the world's major economic powers. This is something that comes up often.
Bitcoin was created precisely to allow you to hedge against these types of arbitrary decisions by the powerful people at the helm of the current system. Since 2014, a senior member of the Federal Reserve Bank of St. Louis has been studying Bitcoin and concluded that “ imposing a complete ban on Bitcoin is almost impossible … well-run central banks should welcome emerging competition ".
Any attempt to punish those who own Bitcoin will ultimately reinforce the very existence of the Bitcoin system . To shut down the Bitcoin network completely would have to shut down the internet, which would mean shutting down the current banking system as well. Unthinkable!
However, the Bitcoin development community has anticipated this worst-case scenario by developing a solution that will allow a node on the Bitcoin network to continue operating via satellite communication. Therefore even a generalized shutdown of the internet will not be enough to shut down the Bitcoin network .
Instead of needlessly fighting Bitcoin, it seems to me that the authorities will instead try to integrate Bitcoin into the current system. Instead of fighting, US authorities intend to take advantage of Bitcoin . In the summer of 2020, the Office of the Comptroller of the Currency (OCC), which is a branch of the US Treasury Department, gave the green light to US banks to offer bitcoin services to their customers.
The US government collects billions of dollars in taxes every year on the profits generated with Bitcoin by their American citizens. Therefore, it is not in their interest to deprive themselves of such a financial surplus. Further regulation will be determined sooner or later, but will not seek to ban Bitcoin. Rather, he will seek to take advantage of it.
From this point of view, there is no concern for Bitcoin and its users.
Opponents of Bitcoin continue to criticize Bitcoin using the same objections. The problem is that these objections have already been proven time and time again to be completely false. Unfortunately, false information seems to enter the minds of the general public more easily.
This is logical, since false information is spread by politicians, bankers, economists and journalists, in whom people often have great confidence.
Unfortunately, these people abuse this trust in an attempt to protect the current monetary and financial system at all costs. As a Bitcoiner, it is my role to keep coming back to this false information to help as many people as possible understand what Bitcoin really is and what it can do for your future.
That's what I hope to do with this story.