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The Seven Pillars of Bitcoin

Sylvain Saurel wrote . . . . . . . . .

Bitcoin is a monetary revolution that will change the world of the future. Bitcoin will not only change the world of the future forever, but it will also change it for the better. The Bitcoin system will enable the construction of a fairer and simply better world for everyone.

When I explain this, some people seem dubious.

The fact that I am a Bitcoiner would prevent me from seeing things objectively. In reality, I think it’s quite the opposite. Being a Bitcoiner allows me to see things as they are.

I swallowed the famous metaphorical red pill that Morpheus has been presenting to Neo in the movie The Matrix for a long time. From then on, I discovered the ugly truth about the current monetary and financial system. This allows me to better appreciate all the characteristics of Bitcoin.

I am convinced that it is impossible to appreciate Bitcoin at its true value if you have not discovered the ugly truth about the current system.

You cannot appreciate the solution to a problem if you have not become aware of the problem yourself. This is obvious, but I like to repeat it because many people do things the wrong way around by first buying Bitcoin without trying to understand the problems it solves.

Without being aware of why Bitcoin is there, you can’t have complete confidence in Bitcoin and apply the best strategy when its price fluctuates sharply.

The Bitcoin revolution is made possible by the seven fundamental pillars on which the Bitcoin system is based. I will present them to you in the following without the order of appearance indicating a greater importance of one of the pillars over the others.

1. Open Source

The Bitcoin system is based on the open-source software Bitcoin Core. It is an essential pillar that has contributed to the incredible success of Bitcoin. Anyone can access the Bitcoin source code.

Everyone can check by himself how the Bitcoin network works. Even better, everyone can contribute to the evolution of Bitcoin. The community of developers who contribute every day to improve Bitcoin is one of the main strengths of Bitcoin in the face of all the competitors who claim to be able to supplant Bitcoin one day.

Bitcoin is above all a monetary revolution.

Its disruptive technology serves to give credibility to its monetary attributes that make all the difference. Many are mistaken in thinking that Bitcoin will one day be supplanted by more powerful technology. This is not where the real competition lies.

So there is no need to look for the next Bitcoin. The real revolution took place with the invention of Bitcoin. In the years to come, Bitcoin will evolve in the same way that the Internet has evolved since its creation.

Thanks to its developers, Bitcoin will become safer and more reliable every day to guarantee the security of the billions of dollars its users have invested in it. Even more than money, the security of the Bitcoin network is essential to ensure that the Bitcoin revolution can continue to progress smoothly.

2. Transparent

Bitcoin Blockchain is based on open-source code. This allows everyone to check what their source code does. In addition, its Blockchain is permissionless and trustless. Anyone can become a node of the Bitcoin network.

Any user can check all transactions validated on the Bitcoin network from the Genesis block mined on January 3, 2009, by Satoshi Nakamoto.

This transparency of Bitcoin allows all its users to form their own opinion about the truth. The consensus obtained gives weight to the Bitcoin network.

This ability to verify everything for yourself is reflected in Bitcoin’s motto:

Don’t trust, Verify.

Bitcoin will never impose on you a truth that is not yours as the current monetary and financial system does.

You will be free to determine what the truth is for yourself. When you become a Bitcoiner, you then get into the habit of developing an acute critical mind that pushes you to verify everything for yourself.

3. Neutral

In creating Bitcoin, Satoshi Nakamoto was well aware that he was inventing a technology capable of revolutionizing the current monetary and financial system.

Rather than wanting to benefit financially from his invention as all Altcoins founders do, Satoshi Nakamoto decided to offer Bitcoin to all the inhabitants of the Earth as a magnificent gift.

It is then up to its users to make Bitcoin a success or a failure.

This is an important concept in the Bitcoin world. There is no leader. All Bitcoin users have the same weight, and this is something truly revolutionary.

As long as you have the private keys to your Bitcoin, no one can take them away from you. Furthermore, no one can stop you from making the transactions you want to make.

While the U.S. dollar has been the world’s reserve currency for 100 years, more and more people are realizing that its life expectancy in this position is now counted. The incredible weakening of the U.S. dollar since 1971 seems never to stop and drives the value of the U.S. dollar towards zero.

Some believe that the U.S. dollar cannot be replaced because there is no alternative.

These people quickly forget that Bitcoin is precisely the only credible alternative to the U.S. dollar that is at the heart of the current monetary and financial system.

Many countries are beginning to no longer accept the exorbitant advantage that the U.S. dollar provides to the United States. Many are seeking to reduce their dependence on the U.S. dollar. Neutral politically, Bitcoin will be an increasingly preferred alternative in the years to come.

4. Decentralized

The Bitcoin network is decentralized. This decentralization is an incredible strength of Bitcoin. A real pillar that allows it to make a difference with all the existing Altcoins.

This makes Bitcoin unstoppable, no matter what Donald Trump or the other powerful people of this world may think.

This decentralization makes Bitcoin more resistant to potential attacks. Its network has an uptime of 99.985% since its creation.

This uptime has nothing to envy those of the Web giants. It’s incredible when you think that Bitcoin has developed only thanks to the will of its users to build a better world for everyone. Bitcoin has never received any financial help from private investment banks or States.

Its current market cap of 570 billion dollars is a phenomenal success, and this is only the beginning. The best is yet to come for Bitcoin.

Currently, Bitcoin remains the most efficient solution for transferring money quickly and borderless. Transaction fees are virtually zero compared to bank fees for such transfers.

Moreover, the 10-minute transfer time for the order is incomparable with the SWIFT interbank payment network, where it takes 2 to 5 days at best.

Bitcoin’s total independence allows you to transfer money without having to answer indiscreet questions that bankers or governments love to ask those who transfer money through the SWIFT interbank system.

Bitcoin gives you the freedom to live your life on your own terms.

5. Censorship-resistant

The absence of a leader has allowed Bitcoin to become a true democracy where all users are equal. Each user is free to use his Bitcoin as he wishes.

No one can force you to use your Bitcoin against your will. You can send your Bitcoin to whomever you want over the network.

Your Bitcoin can never be confiscated as long as you have the private keys. As a reminder of this necessity, please remember this golden rule that is enshrined in the heart of the Bitcoin Club’s rules:

Not your Keys, Not your Bitcoin.

Bitcoin, therefore, allows you to preserve your wealth over time in a censorship-resistant manner.

With today’s banking system, governments can put pressure on you by threatening to confiscate what you own. With Bitcoin, you no longer have that fear. It’s an incredible guarantee in a world as uncertain as to the one we live in currently.

6. Secure

The proper functioning of the Bitcoin network, as well as its security, is ensured by Bitcoin users. This is essential because it implies that without its users, Bitcoin would be nothing.

In the world of Bitcoin, you will discover a double dependence: Bitcoin needs you as much as you need Bitcoin.

Bitcoin miners make their computing power available to the network to validate blocks of transactions. A transaction block is validated every 10 minutes on average.

To encourage the miners to ensure the smooth operation of the network, Satoshi Nakamoto has planned two things:

  • A Bitcoin reward that halves every 210,000 blocks issued in an automatic operation called Halving.
  • A transaction fee.

New Bitcoin units are therefore predictably issued with each block successfully added to the Bitcoin Blockchain.
This allows everyone to predict the timing of new Bitcoin issuance until 2140 when all Bitcoin units have been issued.

Currently, Bitcoin is the most secure decentralized network in the world.

Its network is becoming more and more secure over the years as its Hash Rate increases.

It is also an indicator of the network’s good health, protecting it from potential attacks such as a 51% takeover of the network’s Hash Rate.

Such a secure network reassures users and investors alike that the Bitcoin revolution will be a success in the years to come.

7. Monetary policy

With the decentralization of the Bitcoin network, this last pillar is probably the most important. Bitcoin’s monetary attributes make it a species apart in a world where everything is going digital.

This is what will prevent Bitcoin from disappearing in the future.

While the U.S. dollar, and all fiat currencies, can exist in unlimited quantities since the establishment of the current monetary and financial system in August 1971, Bitcoin exists in finite quantities.

There will never be more than 21 million BTC in circulation.

This gives an incredible guarantee to all Bitcoin users. When you buy a Bitcoin, you know that you will still own 1 Bitcoin out of 21 million in 10, 20, or 50 years. Bitcoin thus avoids devaluing what its users own.

Aside from time, you will find nothing scarcer on Earth than Bitcoin. It is the most scarce thing ever created by humans.

Bitcoin’s monetary policy is also distinguished by the fact that the issuance of new Bitcoin units is predictable. It is automated in the Bitcoin source code and does not depend on any arbitrary human decision. No one can decide to accelerate the rate at which new Bitcoin units are issued.

The inflation of the supply of new Bitcoin units inevitably reduces over time. For every 210,000 blocks issued, the reward for miners is halved. The last Halving took place on May 11, 2020. Since then, the inflation of the supply of new Bitcoin units has been only 1.8% per year.

At the next Halving, at a block height of 840,000, this inflation will drop below zero for the first time in history. Bitcoin will become the most scarce asset in the world ahead of gold and its annual inflation of 1.6%.

This inflation will reach zero in 2140 when all Bitcoin units have been issued.

Bitcoin’s monetary policy is to be contrasted with the quantitative easing practiced by central banks. In the case of Bitcoin, we speak of quantitative hardening. This is an incredible virtue of Bitcoin that protects all its users.

Final Thoughts

Bitcoin is the biggest technological disruption since the Internet. Bitcoin’s technology is there to give credibility to its monetary attributes. These attributes make Bitcoin a true monetary revolution.

Based on the seven pillars that I have just presented to you, Bitcoin builds day after day a fairer and better world for all its users.

It is only a matter of time before the greatest number of people realize this. Bitcoin adoption will explode in the coming years. With a limited supply, and with inflation decreasing over time, the Bitcoin price is promised to reach $1 million within the next 20 to 30 years.

Those who choose to support Bitcoin sooner will naturally be the ones who will get the biggest reward. The good news is that we are still early for Bitcoin, and you still have the opportunity to enjoy it to the fullest.

It’s up to you.


Source : In Botcoin We Trust

Chart: Bitcoin Hit 17th Month Low

Down over 65% from 2022 record high.

Source : Trading Economics

Chart: Bitcoin Crashed Below US$30,000

Source : Trading Economics

Chart: Bitcoin Down More Than 10% in Trading Today

Source : Trading Economics

Chart: Bitcoin Back Down Below US$40,000

Source : Trading Economics

Chart: Bitcoin Drops Below US$40,000

Source : Trading Economics

Chart: Bitcoin Crashed to Below US$50,000 from Above US$67,000 a Month Ago

Source : Trading Economics

Chart: Bitcoin Rose to All-time High

Source : Trading Economics

Chart: Bitcoin Rose More than Double from July Low to Record High

Source : Trading Economics

Why China Finally Decided to Ban Bitcoin

Aaron Mak wrote . . . . . . . . .

After a strong start to the year, bitcoin and its fellow cryptocurrencies hit hard times yet again this week. The biggest news, and most wounding setback, was China’s announcement of new regulations banning all cryptocurrency mining and transactions. The government left no wiggle room: In the world’s most populous nation, buying, selling, and otherwise dealing in crypto is now flat-out illegal.

On Friday, 10 government bodies, including the People’s Bank of China, issued a joint statement vowing to crack down on cryptocurrencies and condemned the technology as a threat to citizens’ assets and a tool for facilitating criminal activities like money laundering. The price of Bitcoin fell about 8 percent on the news, but regained its footing somewhat later in the day. Other, smaller cryptocurrencies took even bigger hits.

China has been instituting increasingly restrictive laws on cryptocurrencies in recent years. The country previously made it illegal for corporations to provide cryptocurrency-related services and to run cryptocurrency exchanges in the country. These new regulations go even further, and essentially amount to a wholesale ban on most every activity that allows the cryptocurrency ecosystem to function. Now, even cryptocurrency exchanges outside of the country won’t be allowed to serve people living in China. The country’s National Development and Reform Commission also announced that it was cutting power off for cryptocurrency mining operations, which expend large amounts of electricity to solve complex mathematical puzzles for which they’re rewarded with units of digital currency. The agency escalated its campaign to root out unauthorized mining from the country last week by targeting people who pretend to be data researchers in order to hide these energy-intensive activities.

China has in the past been a popular site for mining due to low electricity costs in areas like Inner Mongolia, but the country is currently experiencing an energy crisis and trying to become carbon neutral by 2050, a goal that cryptocurrency is making harder to meet. In 2019, China was home to 75 percent of the world’s Bitcoin energy consumption. That number dropped to 46 percent in spring 2021, and will likely drop even more sharply with the new restrictions announced on Friday.

The Chinese government’s move to rein-in cryptocurrency also has to do with its desire to exert more control over economic activity in the country. Bitcoin and its brethren were designed as a tool for facilitating transactions without institutional authorities like banks or governments, so allowing them to flourish in any country takes some power away from state actors. China is now trying to supplant bitcoin by creating its own digital currency known as eCNY, which will be backed by the government. However, eCNY has only superficial similarities to bitcoin and doesn’t use blockchain, the ledger technology at the heart of all cryptocurrencies.

The unveiling of new restrictions in China wasn’t the only development weighing on cryptocurrency this week. Prices for bitcoin and other cryptocurrencies also fell on Tuesday in the wake of the collapse of the megadeveloper Evergrande, which used to be China’s second-largest building company. Evergrande’s revenues have not been able to catch up with its lavish borrowing, and now the company is more than $300 billion in the hole. The failure of such a massive entity tanked the stock market and also sparked a huge selloff of cryptocurrencies. Investors tend to cash in on their riskier assets when there’s turmoil in the markets, and cryptocurrencies are one of the riskiest financial bets you can make. Bitcoin dropped 5.7 percent in price from Monday to Tuesday.

U.S. regulators are training their sights on Bitcoin as well. Securities and Exchange Commission Chair Gary Gensler spoke at length about cryptocurrencies in an event hosted by the Washington Post on Tuesday, and he didn’t seem too optimistic about their future. Gensler noted that he doesn’t think there’s a “long-term viability” and later signaled that the SEC is working “overtime” to create new regulations for cryptocurrency markets that are likely to be quite a bit more aggressive than what’s already on the books. Of particular concern for the cryptocurrency is that Gensler left the door open to regulating stablecoins, or cryptocurrency that’s pegged to fiat currency, as securities. If that were to be the case, a number of cryptocurrency lending and trading platforms would be in serious violation of SEC rules. Say a prayer for the Winklevii.


Source : Slate