See you have to understand what is bitcoin first. It’s like most of us know what is Gold and so to an extent at least without complications when compared to shares, stocks or mutual funds most of us know how much Gold to buy, invest etc.
We know how as an asset Gold is valuable.
Same with real estate, we know how real estate gives us profit or loss.
Bitcoin is nothing but an alternative currency or crypto currency as you would like to call it.
Why alternative to currency?
Banks from where do they get money? It’s our money.
How banks make money? From our money by giving loans etc.
Govt, how do they have power, because they print money.
Now coming to money itself.
Currently what are the problems of money.
Remember before money people had barter system, this is even before gold and silver or bronze coins. I am talking about.
Why barter system failed, you can guess yourself. Like a person who had high value item like say jewels or gemstones had more bargaining power compared to someone who had leather, rice or low value items.
So Barter system failed and people went for money. Let money decide the value for each item.
Now coming to our current situation. What is wrong with money? Off course nothing is perfect but what is wrong with money is:
I have dollars you have rupees. Dollar is valued more than rupee. Whole point of money being created itself goes out of task. Imagine if i had 1 gm of gold and you had 1 gm gold. Universal currency, got it. So value of money will not be decided by economic policies, capitalism, war, trade relations, etc.
Value of bitcoin is same across all the world. Got it. It’s like Gold in the form of currency. All over world whoever has bitcoin will get the same value, plus no taxes, transaction fees, fund transfer limits, fund transfer restrictions or minimum balance maintenance plus cannot be counterfeit.
Yes, gold can also be made counterfeit or be adulterated. But bitcoin is bitcoin. It can be stolen but that’s another point explained below.
Now say you have dollars, I have dollars. But I want to exchange dollars when I come to India from United states. I have to pay money exchange charges. Western Union, Forex Exchange. Yes, got it.
So Bitcoin eliminates the cost of currency exchange charges. Like there is no charges to exchange Gold in return for Gold. Just a example.
Now question is why would people start using Bitcoin?
If you know this, you will know whether to invest or not. It’s got nothing to do with middle class status.
Always take your decision after understanding something fully.
It’s like there are people who say share market is bad but the problem is with us. Ask Warren Buffett.
Same with bitcoin, you have to know if it’s good for you.
Yes, bitcoin has both plus and minus, that is the thing you should know.
It’s like being rich also has its plus and minus, in fact everything has right.
So it’s upto you.
Same reason why are people using bittorrent. Something ringing.
Bitcoin is like Gold. There is only so much of bitcoin, in fact there is a hard cap of 21 million bitcoins, thanks to Satoshi Nakamoto.
He is the person who allegedly invented bitcoin and its algorithm, that ensures that there will no more than 21 million bitcoins.
After 21 million bitcoins what will happen is say like Gold, if all the Gold in the world is found. People start dividing Gold and using it.
Same with bitcoin, people will start using half a bitcoin, quarter of bitcoin. The value of 1 bitcoin will increase.
Say if one bitcoin would fetch you 1 gm of Gold.
Now 1 bitcoin would fetch you 1 gm of Gold.
Similarly, that means half a bitcoin can buy you 1 Gold coin.
So like Gold, value of bitcoin will increase.
Best part:
NO fund transfer charges. Yes, no banks, no third party Visa, Master, NO nothing involved in fund transfer. It’s like i am giving money from wallet to you, but in a virtual way.
So, yes, you have to ensure your system is not hacked, but this remains the same for your bank account, demat etc right.
No time restrictions, unfortunately unless you are really tech savvy and having good banking facilities, fund transfer 24/7 is still a challenge.
Bitcoin is like Gold, middle of the night I can and get it sold.
Same with bitcoin, no need for banks, or some middle party to sell it or buy something with it.
Security, nothing is perfect but bitcoin transaction will only work if all the people in the bitcoin network authenticate your transaction.
It’s like this, everyone bitcoin network knows how much bitcoin I have. So i cannot suddenly sell bitcoins stolen from someone, even if manage to still it from someone.
Only if the person who stole it shows that he got it from someone, then he can sell it. But to get bitcoins also the transactions has to be authenticated by all the people in the bitcoin network.
It’s like torrent. When can you download a torrent file. Only if there is 100 percent of the file available. It has to be available with all the people or atleast some of the people or atleast one person should have the complete file.
Eg: Two people can 50 percent each of the movie, four people can have 25 percent of the movie or one person can have the full movie.
Same with bitcoin transaction, you will get a bitcoin or a part of bitcoin only if spend time supporting the bitcoin network.
Yes, in bitcoin your system itself is the server and you are itself the user.
SO at any point all the systems in the world will not switched off.
So even if one person has switched on the system and is part of bitcoin network, I can send, receive money or even mint (keep the network running) bitcoin.
It’s like torrent, but instead of movies, software, songs, etc. you are part of bitcoin currency network.
You can use any bitcoin softwares available. Same like torrent softwares.
I mean is hard to believe completely, we are used to money but we are also not happy with current banking system, the way currency is valued, indifference in value of currency.
Now its upto you, if you want to buy bitcoin. It’s got nothing to do with middle class. It’s not perfect, it has negatives also positives, but it can be the future. Choice is yours.
Even money was hated in the beginning.
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