Why BitCoin could protect you during a global financial crash! Part 2

BitCoin is by far the most widely accepted and successful decentralized crypto currency in the world, and is today accepted by more than 100.000 companies globally!
A number which grows on a daily basis.

But first, - what does "decentralized" mean?

When I write this we probably have more than 600 different crypto currencies in the world.  By far most of them come into the category "decentralized" while a few, like OneCoin for instance, falls in the "centralized" category.  Let me start by saying that I am a huge fan of the "decentralized" version and have in fact, on a more long-term basis, much less faith and enthusiasm for the "centralized" versions. Although, I do admit, they will probably also play an important role in the transition from "fiat money" as we know it today to the "digital currencies" most of use will use tomorrow.


Ok, so what is the difference between "decentralized" and "centralized?  We have all heard the words "government central bank" which is the bank of the country who is in "control" of the money and with the power to print more money.  I am writing the words "control" here with a big question-mark as in the case with most countries it is very questionable as to in what degree those banks still have much control over their money at all.  The major problem is that these banks in most cases already has printed way too much of their currency- notes,- at the same time as having next to zero reserves in gold backing their money.  This, in my point of view, is just one more reason why they i fact have lost complete control of their own currencies!

Most of the world today,  - is in a very dangerous place with our money.  And the way the central banks and the governments of the world are interfering and playing with our economic future and safety, is downright criminal in many cases.  This is perhaps the main reason why I am extremely skeptical when it comes to "centralized" digital currencies like OneCoin for instance.  Behind some of  these currencies you will find a company.  And then, when it comes to such an all important issue as the welfare of your money,  do you really like to have a company run by non-perfect human beings, to be fully responsible and in full control of your digital money?  I hope you say, - "of course not!"
It is not my intention to attack OneCoin,- although this coin is still not listed on 
any digital currency independent exchanges, - and nor has achieved any acceptance 
by merchants across the globe, it may become a success in the future some time.  
However, the fact remains, behind OneCoin you find a company.  
OneCoin is a centralized currency!

Besides, there is another extremely important aspect of this:  The world governments are known to always want an ever-increasing control of you, of your money and everything you do with this money.  And believe me, - this is something which will only INCREASE in strength over the next few years, - and therefore, - the first place they will go to re-gain this control, - is to the companies who are behind the "centralized" digital currencies"!

Digital crypto-currencies like BitCoin for instance, - has no company, and no person (or persons) behind it.  BitCoin has been created as a very advanced pre-programmed open-source software where it was pre-determied that only a maximum of 21 million coins could be created.  Therefore, - nobody can "attack" or get access to those who are behind BitCoin in an effort to gain complete control over it.  It is and will for ever be 100% decentralized!  Furthermore, these types of crypto currencies does not even have a bank involved, - as through your BitCoin wallet  - you are in fact your own bank!  This means:  YOU are in complete control of your money at all times!  Nobody can take them from you, nobody can confiscate your BitCoins for instance.

Bottom line is:  
"Decentralized" = Hope for FREEDOM!   
"Centralized":  FEAR of lost freedom!

The HISTORY of BitCoin is the digital version of 
the HISTORY of money!

Now, in my humble opinion, this is getting to the point where things are starting to become very fascinating. If you remember my first article in this 4-part series, where, - based on my own personal beliefs, - I made the argument that GOLD was  created by God to be used as money as a part of His plan for people on this earth.  Many of you, I am sure, - do not believe in God and do not know God either.  And for the purposes of this article, this is fine.

However, - as a friend of mine often says:  "Nothing can come from nothing!"  And since we are now going to compare the "history of money" to the "history of BitCoin" - both of these two types of money came from and was created by "someone".

In the case of BitCoin we will start by replacing God with a man known as Satoshi Nakamoto.  Although most people who have studied this today do NOT believe that the real name of the creator of BitCoin was Satoshi Nakamoto, but that this name just was a pseudonym for whoever the person or person was he created BitCoin and the amazing Blockchain technology behind it.
Nobody knows who the creator of BitCoin is.  He, - she or they are totally unknown 
to the world and this was done on purpose by design. A very smart move if you ask me.

So, - even at the very start we find an almost strange similarity between the money we have been used to use so far, - and now the digital version of money like BitCoin for instance:  

People do not really know, understand or even believe in whoever it is who created it!  Sort of a fun and interesting similarity, - is it not?   

Let´s go back to GOLD again:  In the very beginning it was easy for most people to find gold.  But as the years went by, hundreds and hundreds of years, - it became more and more difficult to get the gold out of the ground.  And today, - only very well-financed mining companies with the best and latest in terms of equipment and technology are able to find and mine whatever is left of gold inside the earth.  In fact, - it has become so expensive that many mining operations are not even profitable.

It is exactly the same with BitCoin:  When BitCoin was first created with its Blockchain technology ordinary people like you and me was invited to "mine" BitCoins using our own basic home computers.  This "mining" took place when a person downloaded a software to his or her computer and then used that software to solve certain mathematical challenges.  When a challenge was solved, he or she would be paid in BitCoins.  With other words, the digital version of mining!

Today however, - it is not longer possible to use ordinary computers to mine BitCoins.  It requires special computers particularly designed and produced for such mining operations.  Just as with GOLD it has become very expensive and it requires special equipment and very advanced technology to be able mine BitCoins.  And so, -  just like with the before mentioned gold mining companies, - we now have BitCoin mining companies operating all over the world, - some of them operating HUGE operations with super-computers covering hundreds and even more than a thousand square meters!


 This picture is from one of the worlds largest BitCoin mining operations. Note
the cooling fans in he ceiling which is the reason why the one most costly item
on their corporate budget, amounting to between 50 and 60% is electricity
Please also understand that today there are MANY large and small BitCoin
mining companies all over the world, - from China to Iceland, - from the USA
to Sweden and in many other places.
   
I bet most of you reading this are rather amazed now and that you probably did not know this?

Then, - here is another very exact similarity between gold and BitCoinGold was created in an exact very finite amount.  There is only so much gold which can be mined!  BitCoin has been pre programmed to never allow for more than 21 million coins to be mined. (Each coin consisting of 1 million "bits")  And this figure can never be changed! It is not possible for anyone to play with the software for the purpose of increasing the 21 million coins figure!  Compared to the old-fashioned "fiat money" most of us are currently using, - this is a HUGE advantage!

So again, - do you see the identical similarity between gold and BitCoin? Or perhaps I should say, - do you see the identical similarities between "dezentralized crypto currencies" and gold?  Reason being that there are now several hundred different such currencies in existence today.

And are you finally beginning to see and understand that the most important aspects of money for any human being is the assurance of "security" and "finite limited supply"!?  With our old-fashioned "fiat currencies" the sad fact today is that the governments of the world has totally destroyed the basis for both of these very important aspects of money.  We really do not have much "security" any more. And the "finite limited supply" is nothing but a joke with the money printing presses of the central banks all over the world printing money, - some times as if it was nothing but toilet paper.

Your exciting future is digital!
Your "new world" is the BlockChain!
Most of us at this point are starting to understand that we are fast moving into the 
digital future.  However, not many does really understand how REVOLUTIONARY 
this future is going to be for our money and our economic lives!  And almost
none of us understand the super revolutionary BLOCKCHAIN technology!

As we are now very fast heading into the crossroads between the "old world" and the "new world" when it comes to your finances, it is extremely important for you to be prepared and educated.  In fact I will go as far as to say that the very security and welfare of yourself and your family depends on this!

To start with you have to understand and accept that changes, - even dramatic changes, happens much faster today than even as recently as only 10 years ago.  Some times when I talk with people about this I am hearing them say:  

"Well, - this will not happen in my lifetime, - so why should I bother?"

When I hear a person utter such words, - I am looking at him or her saying:  "If this is what you believe, - what about your care and concern for your children?"  I of course know that some of the dramatic changes I am talking about is happening right now, - and many more will take place in the next 4 - 5 years.

In regard to our economy and financial lives, - decentralized digital crypto currencies is the way of the future IF you want maximum safety, - privacy, - and freedom.  And the one key new technology we all need to better understand now is the Blockchain tehnology.  The "Blockchain" technology was first developed as a foundation to get the concept of Bitcoin to work globally.  However, certain very smart people all over the world has concluded that this is a revolutionary technology which can be used for so many other things.

As a result of this, - a new "Blockchain" was launched approx. 1 year ago, - and was given the name Ethereum.   While the first Blockchain was developed for BitCoin, - the Ethereum blockchain was
primarily developed for concepts known as "Smart Contracts" and something referred to as DAO. (Decentralized  Autonomous Organizations.)  Now, I am probably losing most of you at this point, - but consider these words from the website of the official DAO organization for now:

""The DAO’s Mission: To blaze a new path in business organization for the betterment of its members, existing simultaneously nowhere and everywhere and operating solely with the steadfast iron will of unstoppable code"

Please, - read the above words again in order to start to understand the truly revolutionary new possibilities with this!

In the next two articles on this subject here on my blog I will take you further into the depth of the Blockchain technology and into the DAO concept and what it will mean for your money, your opportunities to make money for all this.

You see:  Not only should you consider BitCoin as an investment and protection of your financial resources, - you should also consider and better understand how you can greatly PROFIT from not only BitCoin and other similar digital currencies, - but also how you can profit in ways you can only dream of from new concepts coming out of the Ethereum Blockchain technology!

The economic future is downright scary and and very unsafe for most people in the world right now.  However, for those of us who are willing to accept and understand dramatic change, - the world has never been a more exciting and potentially profitable place to be than right now!




1 comment:

Michael Carlos Muhammad said...

Another timely, well written and Very Relevant article Helge.

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