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Bitcoin passed the time test. Buying bitcoins is much less risky today than 10 years ago, 5 years and even 1 year ago.
In short
- Bitcoin has become an effective component for main companies, such as Microsthegs and Tesla, with increasing support for financial institutions and states, such as the United States planning to make it a reserve currency.
- ETF Bitcoins approval, large banks in this industry, developing friendly users and network applications secured by Hashyrate 800 tests make the purchase and storage of bitcoins easier and safer than ten years ago.
- Bitcoin, facing global inflation, monetary devaluation and geopolitical tension, excels as a reserve of value and currency without nationality, even attracts certain government.
- Lightning Network has solved the limits of the transaction flow, but bitcoins are more recognized as a reserve of value than for payment means. Its ecological impact was completely reunited positively, while concerns about the ban disappear in favor of debates about taxation.
Some were lucky to get bitcoins for a handful of figs, but in addition to a few Cyferpunks, few kept them. There was a time when you could go to the web and get 5 BTC for free and when we bought pizzas for several thousand BTC.
Millions of BTC were lost because no one really believed in it. The location of all its savings was considered an irresponsible right. Ten years later it is no longer true.
1 – Increased adoption and institutional support
Bitcoin is part of the cash register of hundreds of institutions such as Microstrategy, Tesla, Block.one, Tether, SpaceX or Blockchain In France.
Without a large group, it is no longer a week to announce that Bitcoins of his main treasury treasury. It was a Chinese textile company Addnotax (8,000 BTC) this week and Twenty -one capital The previous week (42,000 BTC). Soon Amazon ? …
Soon all large banks will accept Bitcoins in the Collateral (Goldman Sachs is reflected). Twenty -one capital will be the first serious company to offer loans secured by BTCS. The proposed rate (12 %) is spicy, but due to the competition will drop.
Last but not least, states are there. The government of Donald Trump wants a clearly bitcoin reserve currency in the United States, as Morgan Stanley’s recent estimate emphasizes. Senator Cynthia Lummis even offers to sell gold to accumulate.
Overall, it is estimated that the exchange platforms have a collectively between 100 and 200 million active customers. All of them are potential voters who will satisfy … And by the way, 50 million bitcoin addresses have a higher balance, indicating a maximum of 50 million “Hodlers” (probably ~ 15 million people).
2 – Accessibility and safety
Approval of ETF bitcoins in the United States last year was a turning point. More than $ 41 billion was invested through Blackrock, Fidelity and others.
The regulatory appeasuement instilled in the new US government suggests that large banks such as BNY Mellon, State Street and Citi will enter dance in the coming months. US Bank (fifth retail bank) or Revolut already have bitcoins on behalf of their customers.
Buying and storage of bitcoins is no longer so difficult and risky. While a million BTC was hacked between 2009 and 2020, it was only 4,500 BTC for 2020.
Now it is childish to buy bitcoins through friendly and secure applications. Not to mention countless wallet hardware to seize your bitcoins (safe, Ledger, Safepal, etc.).
The Bitcoin network is also much safer than ten years ago thanks to the growth of “Hasrate”. Per second per second is 800 billion billion (800 000 000 000 h/s).
Achieving 800 EH/S would require production of 4 million S21 antiminers and investing $ 12 billion. Obviously, the probability that the state will take over the network to undermine its growth has become small.
This computing force ensures actual decentralization and consolidates a long -term investment thesis.
3 – geopolitical and economic contexts
The global economic environment has changed since 2015. 25 % of inflation for the last five years has seriously planned purchasing power. It was for many first experiences with high inflation after 30 years of controlled inflation, approximately 2 % per year.
Some countries have experienced a much more dramatic level of inflation. In particular, Turkey (750 %), Argentina (2,500 %) or Venezuela (1,000,000 %in 2023).
It is therefore natural that bitcoins are increasingly interesting than covered in the face of depreciation of national currencies. The CEO of Blackrock did not follow the investors in its annual letter to investors:
The United States has long benefited from the state of the dollar as the dominant currency of the world reserve. However, this privilege is not secured permanently. If the United States is unable to control their debt and leave their deficits uncontrolled, bitcoin could please their status of international reserve currency.
Larry Fink, CEO of Blackrock
Add geopolitical tensions to economic problems and it is not surprising that without state and many currencies, because Bitcoin is doing well.
Taiwan, a country that risks large in the case of climbing on the American-American tension, understood it. Taiwanese representative Ko Ju-Chun recently begged to add bitcoins to the country’s exchange reserves.
His main argument was that “Bitcoin cannot be subject to blockade/embargo (Chinese)”. It is a great fear of the island, which would then see the collapse of its currency on the stock market.
Our article on the subject: Bitcoin would avoid destroying in the case of a Chinese embargo on Tai -Wan.
4 – Many foreigners have found an answer
One of the main unknowns in 2015 was whether Bitcoin could increase the level of transaction (7 transactions / s) without sacrificing its decentralization.
Since then, the development of the Lightning Network (LN) has dispersed concerns. The bitcoin transaction flow is now theoretically unlimited. (However, all exchange platforms should accept it, which does not apply for lack of requests and losses for stock exchanges, especially in transaction costs.)
The low demand is that bitcoin transactions (with LN) are not competitive against Visa and MasterCard. This is because the stock exchanges interrupt transaction costs when purchasing bitcoins.
Don’t miss our article about Lightning Network: This network that changes everything for bitcoins.
The dominant current is today that bitcoin does not have to replace national currencies to “succeed”. The key argument is that a complex society must create money ex nihilo to finance an intensive capital infrastructure such as nuclear power plants, railways, etc.
This is called the “Fiat” system: Banks lend money created by ex nihilo, which is destroyed during payment. However, we cannot create bitcoins ex nihilo and that is his interest. Fiat currencies and bitcoins are not used the same target.
It was also clear that bitcoins are not an ecological disaster we sold, which is quite the opposite. Soon it will be a basic tool for adjusting according to the demand for electrical networks. Many very serious studies recognize this:
Finally, the spectrum of Chinese ban finally belongs to the past. The subject is now to select the correct tax regime. For example, there is no tax on capital revenues in Germany, Portugal and the Czech Republic when you have bitcoins for several years (without speculation).
Bitcoins should be considered a currency and should therefore not be taxed. This is the last limit that the US government will surely exceed.
Don’t miss our article: Bitcoin: “The World Code has collapsed”.
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Reports of bitcoins and geopolitics.