Roser bouce (OP)
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April 21, 2024, 10:07:33 AM |
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Before going into the complicated talk about Bitcoin, we need to understand a little about money. I won't go into the complicated finance talk. Money is something that everyone believes has value. That's why if you give it to someone, they will accept it. Instead, he gives me what he wants from him.
As a simple example, I went to a market to buy watermelon. I gave the shopkeeper $50 dollars to buy the watermelon. The shopkeeper took the $50 from me because he believed it was worth fifty dollars. And he gave me the watermelon because I believe watermelon has value. He gave me something of value, and I gave him something of value. This is about exchanging value, which is very important to understand before going into the bitcoin details. Because the whole thing will become easy for us. Because once this value was exchanged for gold and silver with such currency, Because money was invented not long ago. I will buy a horse from you. I will tell you that you have a horse. I have 20 Silver or gold coins. Give me your horse instead of what I am giving you. You would have given me your horse. Same logic, because you believe those 20 silver coins or gold coins have value. And those 20 silver coins or gold coins you got from me. With this, you can again buy rice from the shop or buy a house and buy anything else you need from someone else.Basically, you can exchange this same currency with another person if you want. Because society as a whole has accepted that this gold or silver has value, just as society has accepted that money has value.Understanding value is very important. Transporting gold and silver is very troublesome. Suppose I go to buy a horse, and it costs 20 silver or gold coins. But if I want to buy a ship, I may need 50 thousand silver coins or 30 thousand gold coins. I don't know how much, but it will be a lot. Now how do you transport or manage so many gold or silver coins? Many people may be near. I will take it from them. I'll carry the whole thing inside the bag. It's a big, complicated thing. It was a big problem in the case of gold or silver. It's a difficult thing to exchange through heart assets. That's why people decided that a very simple solution is to keep all the gold I have in one place. Instead of that, I will take a paper from that place. That paper will have written that there are so many gold levels. I will exchange that paper with other people. When I go to buy a horse, I won't give him actual gold. I will give him a piece of paper that is worth one gold coin. Because transporting gold coins is a hassle. Transporting the paper is a very simple task. Now the person who is receiving it also sees that there is a gold coin written on the paper.The paper is worth one gold coin. Something like this was written, and he took the paper, believing it. Instead, he gave me his horse, and with this paper, he could do anything. And if he wanted, he could take the paper to the place where I had left the gold coin, and the bearer of the paper was obliged to pay this place with the gold coin.
The whole thing is gold standard. It means that I am actually exchanging gold coins or gold, but I am doing it with money. I have left the actual gold in the bank. That bank is keeping the gold coin for me. Instead of that, it is giving a certificate that says that the value of this certificate is so much gold coin, and I am exchanging it, but the gold is kept in place of gold. This thing goes on for a long time. The whole world comes pretty close to the gold standard. And the whole world accepts the gold standard fairly widely. Everyone accepts this system because it is much easier than the previous system of gold and silver-related transportation. But slowly, various problems with the gold standard started to appear. Gold standard trading started in America in 1933, and in Britain, it continued until 1931. Then Britain said that I would not be on the gold standard anymore. A few days after that, America said that I would not be on the gold standard. Now, if you're wondering what that means, I won't be on the gold standard.This means that if I print money or give paper to people, it is not necessary to have the same amount of gold coins in my bank to give the paper to people. I can pay with paper, or technically, I can print money. Till then, I could only print money or issue money certificates when the equivalent amount of gold coins was deposited in my bank account. But this is the time when everyone decided that it would not be the gold standard. It's a big change. That's because, at that time, the whole world realized that we don't need to follow the gold standard anymore. We can print money if we want, and we can print more money if we want and distribute it to people. Now the question that will come is a very common one. We knew the value of money until now. I would give the thing to the watermelon seller or the horse seller, and he would take it because he knew he could make gold in the bank with it if he wanted to. They would give me gold if I showed them that paper. They all knew that, so they were taking it easy, but instead they were giving me what I wanted. Now that everyone has decided that we are not going to accept the gold standard anymore, So the question may arise: why do we believe that paper has value if the standard is not followed? Anyone can make this paper. This is where the fiat currency system was born. The government or the Federal Reserve came and said you have nothing to worry about. Not depending on gold and silver is fine.But whatever I say as a government or as a government bank, I say with responsibility that the paper I am supplying has value; there is no reason for your tension. Everybody in the whole country can believe this thing. Now you can think that the bank or the Federal Reserve is saying that you can believe it. But technically, I can start a new currency today if I want. Suppose I can write on a piece of paper that costs so much money and start distributing it. I just have to solve a problem. That is, I have to convince the rest of the world that this paper has value or that paper has value. If I can settle, I can establish if my paper has value or if the paper I print has value. For example, if the watermelon seller accepts this paper, The watermelon seller will only accept the paper when the seller knows it has value. And with this paper, I can buy something else or buy something else from someone else. If everyone accepts it, then there is no difference between me and the bank. Because the money of the bank is not bound by gold, nor is my money bound by the bank. Banks are telling or any bank in the world is telling any government to trust their currency. Everyone is believing in him. But technically, it is beyond belief, or there is no solid basis for that currency. Due to this, we have to believe that this currency has value. Do we understand what the main problem is?The main problem is that anyone can print money, but after printing money, the rest of the world has to believe that the money has value. If we can make them believe it, then we have no problem. Then I can use it as the main currency of the world or the main currency of the country. There will be no problem.
In 2009, a man or a group of people named Satoshi Nakamoto—no one knows whether it is a boy or a girl. Who is Satoshi Nakamoto? He publishes a white paper in a forum. That white paper says that we are publishing a digital currency. It will be decentralized. Centralize means power to one. Decentralizing means giving power to the many. No one can change it with a single decision. This currency will be decentralized. This currency will be based on blockchain technology. Block chain and bitcoin are different things. Block chain is a technology. The technology is based on the public ledger. I will not talk much about the block chain here. This group, or a man named Satoshi Nakamoto, launched a currency called Bitcoin using block chain technology and published this white paper to the world in 2009. At first, people may see many similarities between Bitcoin, gold, and silver. Sona Rupa Supply Limited. This was a big reason why people accepted gold as a medium of exchange for silver in the early days of the world, and later, when the gold standard came in, until 1933. People have followed the gold standard since the beginning.Because their supply of gold and silver is not fine. There is only a certain amount of them. There is a fixed amount of bitcoins in the world. Many say Bitcoin is digital gold because of its similarity to gold and silver. Bitcoin is the digital equivalent of gold. Here is a fun fact: since 2012, people's interest in buying gold has decreased. I know people around us buy a lot of gold and silver. Especially the people or people around our society buy a lot of gold. But if we think about the whole world, interest in buying gold has slowly started declining since 2012.
On the other hand, interest in buying BitCoin or similar digital gold has started increasing since then. Another interesting thing is that we don't know if Satoshi Nakamoto is one or more people. But since Bitcoin wallet is public, how many bitcoins are in Satoshi Nakamoto's wallet? How many bitcoins are in the Satoshi Nakamoto wallet, if you count? If you count bitcoin, Satoshi Nakamoto is one of the richest people. Still, we don't know who it really is. Currency is created. The white paper has been launched, and everything is fine. Now, the core of this currency is that people have to accept it.So that everyone can use this currency, it is a currency that you can trust. To do this, slowly people started promoting Bitcoin, who are enthusiastic about Bitcoin. Initially, the campaign was not very strong. But as the number of people interested in Bitcoin has increased, the number of Bitcoin miners has also increased. As the number of Bitcoin peer-to-peer transfers increases, As the number of wallet holders increases, Bitcoin has slowly entered the main stream world. And people are interested in digital gold—what is it really? Should I go to Digital Gold or not? When Bitcoin enthusiasts talk about the positive side of Bitcoin, a few things come up, the first of which is that Bitcoin is peer-to-peer transfer without having to depend on a third party. If I want to send you money, I have to rely on the bank. If you want to send money from abroad, you have to depend on the bank of that country, and you have to depend on the bank of the country to which the money is sent. Then I will get money from that bank, and then I will get it from him. Many steps come in between. Bitcoin is a peer-to-peer transfer. You will have a wallet. I will have a wallet. I can send it directly from my wallet to your wallet without having to depend on anyone in the middle. You will get my money in about 10 minutes. It is a big thing. We humans don't really understand how big it is.90% of people in the world still do not have a bank account. This is the banking system. Most people are outside the banking system. Since you can only use Bitcoin through an internet connection and a mobile device, If Bitcoin or crypto currencies in general can be popularized, the whole world will easily have a bank account for anyone with internet access. We can bring the whole world into the bank very easily, which is a big benefit. The second benefit is that every country has its own currency. There are US dollars. Europe has the Euro. Everyone has their own currency. If Bitcoin can be established in the whole world, as a currency or as the main currency. Then the whole world will become one currency. Then there will be no conversion rate problems. When going from one country to another, one dollar is equal to how much money there is. This conversion will not be troublesome. There will be no cost or hassle due to this conversion. And there will be no problem with where to convert it or what to do. We can get out of these troubles. If we can accept a universal currency in this world, The biggest aspect of this currency is that there is no owner. This currency is a decentralized currency. If anyone wants to launch Bitcoin in the whole world, it is already ready. No one can change what they want inside Bitcoin. No one can invent another currency like Bitcoin if they want to print money. We know a total of 21 million will be mined.Then no more mining, No one can say that no more bitcoins will be printed. Bitcoin printing will stop. So the problem of inflection or the problem of deflection. When we see that the government wants people to buy more, they try to slowly increase the infection rate when people buy, and the currency value decreases. We know what to think about the US market after the last two years. In the last two years, as much money has been printed as in the two years from now. More than the last 30 years before that. Free money was given because of Covid -19. When these are done, the value of the currency depreciates, and Bitcoin anthologists say that the value of the currency is slowly depreciating. For example, $100 could buy you a lot more things than $100 could buy you 10 years ago. That means $100 in 10 years will buy you less than what you can buy today. It means that the currency value is decreasing slowly. For all currencies, we can see that the currency value is depreciating. One of the main reasons is that the currency is moving away from the gold standard. When the currency is running on the government's or bank's own will, we will print it as we want. Then people's trust in that currency is slowly starting to decrease, and Bitcoin or other crypto currency is working as a big trust for many people. However, in 2009, work on Bitcoin began. But it took until 2012 for Bitcoin to hit the main stream media.Then slowly, small companies started to accept Bitcoin. In 2012, World Press, the world's largest CMS company, began accepting Bitcoin as a payment method. A few days later, Baidu Expedia, another popular company, started accepting Bitcoin. When these companies slowly started to accept. Then Bitcoin gained main stream acceptance. There is such a digital currency that the people of the world can understand. Who can be trusted, and slowly everyone has to trust the core concept of this currency? This is the currency that is slowly being believed. This number and the number of such people are starting to increase day by day. In 2010, the price of one bitcoin was 8 cents, and today, one bitcoin is worth about 74,000 dollars. It was a horrible jump, and no asset class has ever seen such a big jump in history. That is bitcoin. The positive side of peer-to-peer transfer that I was talking about earlier. I can send you money directly without any middleman. It is a positive thing. But it can be a negative thing if I send you the money directly. In that case, if you have any illegal intentions or if I have any terrible bad intentions, then I can take the money directly from you. If there is a bank in the middle, you can get your money back in many ways. When you send money directly, there is no possibility of getting it back. This is why hackers say bad things are happening.Bitcoin is now the most popular thing, or cryptocurrency in general, among people in the criminal world. If it is a peer-to-peer transaction through cryptocurrency, it is a big deal. Once sent, there is no way to get it back, and it is very difficult to trace. When opening a normal bank account, the account is opened with your name and your parents' names. So it is very easy to find out who sent and who received money. When I open the wallet and do the transaction in Bitcoin, Actually, no information has to be given while opening the wallet. This is because I am not opening an account by filling out any information or any form. When I am receiving or sending bitcoins, I can see who is sending the wallets. You can see which account is going from which account. But it is very difficult to find out who the owner of that account is. This is a negative aspect of Bitcoin.
But despite all these problems, Bitcoin is slowly becoming a household name. As a household name, Bitcoin is becoming more and more popular. Which means that, as Satoshi Nakamoto wanted it in 2009, the more people learn about Bitcoin, the more people will accept it. It will actually become the main currency when everyone accepts it. Not everyone has accepted the whole world yet. But the number of people accepting this is increasing day by day. Every year, we see that the popularity of Bitcoin is higher than the popularity of Bitcoin in the previous year. And various companies have given the example of Tesla. Tesla announced earlier this year that it will now be able to pay for cars with Bitcoin.
A few days later, Tesla said it would no longer accept bitcoin car payments. Because there are environmental problems. When you produce bitcoins, you have to make them through mining. Bitcoin mining is done by computers solving complex algorithms. For mining, China and Iceland have large mining centers where electricity is cheap. Thousands of acres of land are mined on these lands. Place the computer on the computer. Everyone is mining continuously. It seems to be causing a lot of damage to the environment. That is a negative aspect of bitcoin, and everyone is now pushing to make it a green bitcoin. That will be unethically mined. Bitcoins will not be mined due to unanticipated environmental damage. Many are saying that if it can do this, then Bitcoin will be able to move on to the next stage. Finally, should you invest in Bitcoin? Anything that tempts you to get rich easily should not be invested in. Cryptocurrencies of all kinds, including Bitcoin, are still illegal in many parts of the world. But you can invest a percentage of your amount in the world at this stage. Bitcoin is a fad. I don't know. Satoshi Nakamoto I find it very strange that one person or group of people invented something like Bitcoin. Which can be an alternative to currency all over the world or has become an established digital currency. Yet this man or a group of men does not come before the world and say that we have made it.A few days later, Tesla said it would no longer accept bitcoin car payments. Because there are environmental problems. When you produce bitcoins, you have to make them through mining. Bitcoin mining is done by computers solving complex algorithms. For mining, China and Iceland have large mining centers where electricity is cheap. Thousands of acres of land are mined on these lands. Place the computer on the computer. Everyone is mining continuously. It seems to be causing a lot of damage to the environment. That is a negative aspect of bitcoin, and everyone is now pushing to make it a green bitcoin. That will be unethically mined. Bitcoins will not be mined due to unanticipated environmental damage. Many are saying that if it can do this, then Bitcoin will be able to move on to the next stage.
Finally, should you invest in Bitcoin? Anything that tempts you to get rich easily should not be invested in. Cryptocurrencies of all kinds, including Bitcoin, are still illegal in many parts of the world. But you can invest a percentage of your amount in the world at this stage. Bitcoin is a fad. I don't know. Satoshi Nagakoto I find it very strange that one person or group of people invented something like Bitcoin. Which can be an alternative to currency all over the world or has become an established digital currency. Yet this man or a group of men does not come before the world and say that we have made it.
It was made in 2009, 15 years ago, and not told to anyone, or for 15 years, did not use ego. We give a status on Facebook by doing much smaller work than this. Even then, no one in the whole world could know that he had done such big work. This seems to be the most convenient thing for me.
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