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As the host of a Bitcoin-only podcast and editor for Satoshi’s Journal, guests ask me, “Are you a Bitcoin maximalist?” and I always reply that I am a freedom maximalist because I believe Bitcoin is freedom money. Those million other crypto things are akin to gambling, a Ponzi scheme, or downright unethical practices with people’s hard-earned money at stake. I wrote this article in light of the financial meltdown of FTX, founded by Sam Bankman-Fried and Gary Wang, which resulted in billions of stolen dollars and many being scammed out of their cryptocurrency investments. Bitcoiners have been saying any crypto other than Bitcoin is doomed to fail, and once again, their predictions came true.
Bitcoin is a Commodity, not a Currency.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Bitcoin is often called a cryptocurrency, a virtual currency, or a digital currency — but what it is, is a decentralized, peer-to-peer payments system. Bitcoin isn’t backed by gold or silver like traditional fiat currencies — instead, Bitcoin is backed by mathematics. Bitcoin’s protocol and network create unprecedented levels of security and stability. Bitcoin can be sent from one person to another without needing a third party, such as a bank or government. No individual can change Bitcoin’s protocol without the majority of Bitcoin’s network agreeing.
This makes Bitcoin very different from traditional fiat currencies, which are often subject to manipulation and control by central authorities. Because of these characteristics, Bitcoin has been called ‘digital gold, and some people believe that it will eventually replace traditional fiat currencies as the global reserve currency. If this happens, then the price of Bitcoin would likely increase dramatically. However, even if Bitcoin does not replace fiat currencies, it still has tremendous potential as a commodity. For example, Bitcoin can be used to purchase goods and services or be traded on exchanges for profit. Merchants can also accept Bitcoin as payment for goods and services. Therefore, even though Bitcoin is not currently classed as a currency by most governments, it still has a lot of useful applications as a commodity. As more people become aware of Bitcoin and its potential uses, the price of Bitcoin is likely to continue to rise.
You Can Solve Custody Without an Issuer.
Bitcoin holders know the importance of controlling their own private keys. Holding your Bitcoin eliminates the need for a third-party custodian. This not only gives you more control over your Bitcoin, but it also helps to keep your Bitcoin safe from theft or loss. Bitcoin’s decentralized nature also means that no central authority can freeze or seize your Bitcoin. As a result, Bitcoin holders can rest assured that their Bitcoin is safe and secure.
The Vast Majority of Crypto Tokens Are Unregistered Securities Trading on Unregulated Exchanges.
Cryptocurrencies have been making headlines worldwide, and Bitcoin is at the forefront of this Financial Revolution. Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies are labeled decentralized but usually are backed by a centralized entity. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. The vast majority of crypto tokens are unregistered securities trading on unregulated exchanges.
This makes them precarious investments. Cryptocurrency prices are highly volatile, so investors could lose all of their assets. Even though cryptocurrencies are high-risk investments, some believe they could have a bright future. Cryptocurrencies have the potential to revolutionize how we interact with the digital world. Still, without clear-cut regulation on the framework to protect investors, it remains to be seen what their long-term impact will be. Crypto holders should know the risks involved in investing in these digital assets.
Bitcoin is the original cryptocurrency and has been around since 2009, and has never been hacked. It was created to bypass central banks and traditional currency systems. However, over time it has become clear that Bitcoin doesn’t quite fit in with the rest of the cryptocurrency world. Most crypto tokens are unregistered securities trading on unregulated exchanges, while Bitcoin is a commodity like gold or oil. This dysfunctional relationship needs to be resolved so that each token can reach its full potential. Bitcoin holders should stand up for their coin and demand it be separated from security tokens, stable coins, and alternative coins. Only then will Bitcoin realize its true potential as the only actual crypto.
This is a guest post by Dawdu M. Amantanah. You can follow him on Twitter @_DAWDU. Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal or Satoshi’s Entertainment Company.
Dawdu, nice job capturing the ethos of recent events!