You won’t understand Bitcoin and its history in one sitting. This takes time to understand the concept and purpose of this digital currency. I did not comprehend this market the first, second, or third time when I was introduced to Bitcoin.
1. The dynamics of Bitcoin and the dollar.
Four years ago, I was one of those people who learned about Bitcoin. For me, it was hard to understand what a digital currency was that you could not see, taste, or touch. This was hard for me to grasp. You may be the same way.
After sitting down and studying what Bitcoin was and how it was created as a way to use currency that did not involve a government, I was very interested.
When you look at the dollar, the US government prints as much as they want. They continue to run a deficit, sell bonds, and create loans with other countries. The dollar has less value the more the government continues to print more money.
2. Even government officials and investors have a hard time comprehending Bitcoin.
Bitcoin has been used for illicit finance but the same holds true for the US dollar which is also used for illegal activities.
Even among top investors, some do not see a future with Bitcoin.
Warren Buffett one of the great investors of your time has not been a fan of Bitcoin.
“It’s ingenious and blockchain is important but Bitcoin has no unique value at all, it doesn’t produce anything. You can stare at it all day and no little Bitcoins come out or anything like that.”
3. The big players entered this game.
Even though governments and personal investors have shied away from cryptocurrencies, top companies have invested millions and billions into Bitcoin.
These companies invested money where they thought would have the best return. Savings accounts definitely are not doing that.