How Magical Is The Magic Money ? - Bitcoin

[ColdLava40]

Becoming your own bank wouldn't have been possible, until Satoshi Nakamoto can up with a brilliant idea. Third party interference has been a major issue affecting those who are not part of the governmental system, making them feel almost less important especially when it comes to accessing their own deposits.

Been your own banks literally gives you the same authority that financial institutions (banks) posses, such as:
1. Sending money to anyone around the world with out intercountry restrictions.
2. Sending any amount unlike banks that gives limit
3. Acting as a third party in approving your own transactions, etc.

The volatile nature of this form of money makes it a suitable investment option for those that believes in it. Interestingly, price increase and price decrease are both different opportunities that favors it's users. When the price goes up, those in possession makes  decent profit for themselves depending on how much they bought and how many they've acquired. When the price drops, people sees it  as an opportunity to accumulate more. I would say that Bitcoin is indeed a marvelous piece of art.

Is there anything more interesting than becoming your own bank, approving your own transactions and also enjoying both the positive and the negative price aspect of the currency ?. What more can be magical than this ?.

[Casdinyard]

Don't want to sound like the grammar police out here but implying that what bitcoin does is magic hurts its reputation in a way. It makes people think as if everything that bitcoin is all for constitutes nothing but the collective delusion and imagination of those who support it, which can't be the case. The concept of being your own bank is a little bastardized too, since for the most part the only thing that makes bitcoin similar to a bank is the fact that it's a store of value, and even that is a massive stretch.

At its core bitcoin is nothing but a payment system done digitally, which we happened to find out is also capable of giving us profits down the line. The discovery is purely coincidental and had we not discovered this we wouldn't even think of bitcoin as a "bank for the people".

[Hatchy]

Been your own banks literally gives you the same authority that financial institutions (banks) posses, 

I would rather say having control over your own funds(that's if you use decentralized mediums to store your funds) yes, Bitcoin is serving these purposes and many more. Alot of person has decided to adobt Bitcoin as a store of value, because of the freedom it give. Just as you've stated it has help make cross border transactions possible and with ease.  Banks on the other hand has lots of processing to complete for one to send money across his countries border. But if we look at it from what you've said, being your own bank. It no longer follows that way anymore because today, we now have centralized bodies that helps other keep their funds. Similar to the banks. So the idea is that what ever freedom you've choose to get using Bitcoin depends on how you've decided to store it.

[un_rank]

Been your own banks literally gives you the same authority that financial institutions (banks) posses, such as:
1. Sending money to anyone around the world with out intercountry restrictions.
...

Even local banks cannot send across countries without any restrictions. SWIFT regulates transaction across borders and can put restrictions on banks cause of political reasons like was done after the onset of the war between Russia and Ukraine.

- Jay -

[hugeblack]

Frankly, I did not understand the idea you are trying to convey, but in general, there are some incorrect points you mentioned.

Is there anything more interesting than becoming your own bank, approving your own transactions and also enjoying both the positive and the negative price aspect of the currency ?. What more can be magical than this ?.

Not everyone can confirm or reject a transaction except those who have mining devices connected to mining pools, and even those cannot reject a transaction as long as it is compatible with the network protocol, and even if they refuse, there are other pools that will accept these transactions.

If you use closed source wallets, leave your money in third-party custody services, in CEXs, then you are not becoming your own bank.

[goldkingcoiner]

Don't want to sound like the grammar police out here but implying that what bitcoin does is magic hurts its reputation in a way. It makes people think as if everything that bitcoin is all for constitutes nothing but the collective delusion and imagination of those who support it, which can't be the case. The concept of being your own bank is a little bastardized too, since for the most part the only thing that makes bitcoin similar to a bank is the fact that it's a store of value, and even that is a massive stretch.

At its core bitcoin is nothing but a payment system done digitally, which we happened to find out is also capable of giving us profits down the line. The discovery is purely coincidental and had we not discovered this we wouldn't even think of bitcoin as a "bank for the people".

I would agree with you, albeit perhaps not quite as aggressively.

OP probably does not mean to throw dirt on the image of Bitcoin but rather he seeks to address the meme of Bitcoin being "magic internet money". We have all heard it and seen it. And we had a few laughs. But ultimately, there are people who misunderstood Bitcoin because of that meme. That hurts the overall adoption of Bitcoin and slows down value progress. (I say slow down because a rising value is inevitable.)


Bitcoin needs to be taken more seriously and much more professionally. It really helps Bitcoin's appeal towards investors and strengthens Bitcoin.

[BIT-BENDER]

Is there anything more interesting than becoming your own bank, approving your own transactions and also enjoying both the positive and the negative price aspect of the currency ?. What more can be magical than this ?.

It's not magic money it's digital money and yes it offers individual a unique and better option than the traditional financial system, but with great power which crypto-currency offers comes great responsibilities.

Being in charge of your finances means you also take the blow when it doesn't go too well that is why you need to also learn to prioritise safety and security while in crypto-currency. The usual advice is getting your own wallet, cross checking before making an transactions, using the right exchanges to buy or sell, trade, protecting your device with additional protection aside your private key like 2FA factor and being security conscious.

[Mpamaegbu]

Your caption got me the wrong way. For a second, I thought the "magic money' mentioned in your topic title was the type often pronounced by evangelical and pentecostal preachers or the entire African Christian pastors in their crusades to woo membership. This is a classical example of why nobody should read a headline alone and run off with its supposed story.

[SamReomo]

It's not fair to call yourself a bank because we aren't doing those shady things that most of the banks have been doing with their account holders. Satoshi introduced Bitcoin because he really didn't like the traditional banking system which was controlled by a few people. The banks have been controlling us and our money for a long time and now after the introduction of Bitcoin we have got an option which isn't controlled by anyone. But still unfortunately we will have to rely on banks in order to purchase Bitcoin and that's a bitter truth.

The volatility of Bitcoin is very high and you're right that because of its volatility investors and traders can make a lot of profit out of it. Most of the investors usually don't care much about the volatility of Bitcoin because they mainly buy it and hold it for decades and we call those investors as Hodlers. A few investors want to earn a lot of profits within 2-5 years and those investors usually accumulate Bitcoin during bear market and sell it during bull market.

Ah, another point I would let you know is that you can't approve your own Bitcoin transactions. The miners are the ones who approve those transactions by adding those in the next blocks. If you had that power then you maybe able to call yourself as a magician but my friend the miners are doing the thing for us. Well, still I must say that you have shared some good information about Bitcoin and I recommend you to learn more about it by regularly visiting this forum and reading the posts of the reputed members.

[gunhell16]

There is no doubt that Bitcoin gives us a reason to be able to manage our own money better than the bank. And some of the reasons why we can do this are because of the decentralization that Bitcoin has that banks don't have.

And this is also the main reason why Nakamoto did this—for all the people who will actually believe it. To protect our hard-earned money and also provide a good opportunity for us as users and believers in Bitcoin. And because of this matter, we are very thankful to Satoshi for so many reasons for providing these solutions in terms of financial problems.

[PX-Z]

Bitcoin was a so magical before when you can still mine it using PC's CPU and GPU, when faucets still gives enough, in short when you get it for free then get the benefits on how decentralized it works, how convenient it was to send and receive without restrictions and lastly get the monetary benefits when you just hold it.

[hatshepsut93]

Is there anything more interesting than becoming your own bank, approving your own transactions and also enjoying both the positive and the negative price aspect of the currency ?. What more can be magical than this ?.

Most people don't want their daily things, like currency, to be "magical". They want them to work smoothly, without any problems, without any extra effort, without risks. Being your own bank is not some fun activity, it's quite stressful and quite demanding. Most people have zero clue about cybersecurity and cryptography, they at best google some advice on the Internet, which will often be quite poor if they don't put effort in their research.

[OcTradism]

3. Acting as a third party in approving your own transactions, etc.

You don't and can not approve (confirm) your own transaction.

What you can do with your bitcoin and your Bitcoin transaction?

Compose it: Choose inputs, outputs; set amount you what to send to a receiver;  receiving address and fee rate for  your transaction. Then a final step is Signing your transaction with your private key to broadcast it to mempools.

After broadcasting it to mempools, you only can wait for miners to confirm your transaction. If waiting time is longer than what you want, you can use Replace-by-Fee to bump the fee but you must use this opt-in initially when you broadcast your transaction; or can use Child-Pay-For-Parents in some cases.

How Replace-By-Fee (RBF) an Child-Pays-For-Parent (CPFP) can speed up confirmation
[TUTORIAL]getting a low-fee transaction unstuck by creating a CPFP with electrum

[Learn Bitcoin]

We are not using Bitcoin the way Satoshi wanted to use it. Satoshi wanted to eliminate the involvement of 3rd parties, but we are using it with banks, centralized exchanges, etc. The moral have been changed in a decade. Still, we have options to use it correctly. Deal with the people you trust so you don't need 3rd party to get involved in your transaction.

Not everyone can confirm or reject a transaction except those who have mining devices connected to mining pools

I guess he didn't mean that. By saying approve your transaction, maybe he means you don't need approvals from some special entities like the bank. Usually, miners do not reject any specific transaction if it has enough fees. No matter if it's scammer transactions. There is no way people can check who is the owner.

[Dave1]

Lol, when I read the subject it reminds me of this wizard meme,



Yes, bitcoin gives us so much freedom right now, used as a payment method, remittances across border, form or investment, (HODL) and others that give us so much advantage over the traditional banks.

I just want to reiterate though that BYOB also entails responsibility, you need to know how to protect your bitcoin from hackers and any other cyber criminals.

[SquirrelJulietGarden]

We are not using Bitcoin the way Satoshi wanted to use it. Satoshi wanted to eliminate the involvement of 3rd parties, but we are using it with banks, centralized exchanges, etc. The moral have been changed in a decade. Still, we have options to use it correctly. Deal with the people you trust so you don't need 3rd party to get involved in your transaction.

Some people use Bitcoin transactions through centralized services and connect their trading activities with banks, cards without any break in between. It's not good practice for privacy and anonymity but it's personal choice. They are free to choose what they do and I can assume they don't care about either privacy or anonymity. They can change their mind and practice in future, anytime, because they have freedom to do so.

Why KYC is extremely dangerous and useless
No-KYC Exchange Encyclopedia
https://kycnot.me/

[Learn Bitcoin]

We are not using Bitcoin the way Satoshi wanted to use it. Satoshi wanted to eliminate the involvement of 3rd parties, but we are using it with banks, centralized exchanges, etc. The moral have been changed in a decade. Still, we have options to use it correctly. Deal with the people you trust so you don't need 3rd party to get involved in your transaction.

Some people use Bitcoin transactions through centralized services and connect their trading activities with banks, cards without any break in between. It's not good practice for privacy and anonymity but it's personal choice. They are free to choose what they do and I can assume they don't care about either privacy or anonymity. They can change their mind and practice in future, anytime, because they have freedom to do so.

What I think is, once you have used those services and compromised your identity, you never know if they are going to sell your identity to others. Anything leaked on the internet is not safe anymore. Coinbase admits that their KYC data collector company sold users' data on the darknet for $1 each. So, we don't know if we are safe on any platform.

Banks are one hand on the government. They will give your information to the authorities whenever they ask. No, it is recommended not to use banks or cards to transact your cryptocurrency. But, who cares?

[bayu7adi]

Such a level of freedom was indeed hard to come by before Bitcoin emerged. We owe our gratitude to Satoshi for initiating and demonstrating to the world that a fair alternative to the conventional banking industry truly exists. I've also come to realize that traditional banks aren't as pristine as they seemed, at least not until I learned about Bitcoin. I concur that there are numerous advantages to the presence of Bitcoin.

However, I'm not quite ready to part ways with some of the services offered by conventional banks at this point. Yes, BTC is a digital currency, but I can't yet use it directly for all my needs. When I contemplate abandoning traditional banks, I reconsider because I still rely on them to exchange BTC for FIAT.

In my country, BTC and traditional banks have become complementary financial elements due to government regulations that do not fully open the door to the adoption of Bitcoin.

[alexforneus]

The main point as for me that your coins are really yours. No one can block your account if you are holding your sats in non custodial wallets

[lombok]

What I like most about BTC is that banks and governments don't know how much Bitcoin/crypto I own. They don't know how much income I get, there are many ways to withdraw BTC/crypto and spend it, now there are many platforms that accept BTC payments. Crypto/BTC exempts me from income tax 😅. I hate taxes, when our hard work is demanded by a corrupt government, I don't want to. I'd better donate it directly to someone who needs it.