Bitcoin and The Imminent Recession! – Free Hub
Bitcoin to the rescue
Bitcoin rose from the ashes of the 2008 global market crash. Bitcoin brings new hope in the already weaken investors’ confidence after the aftermath of the 2008 financial catastrophe.
It is no coincidence that Bitcoin was released last January 2009 by a person or a group called Satoshi Nakamoto.
Satoshi Nakamoto’s understanding of the ever-growing failure of the governments, banks, and the Federal Reserve to do their job in eliminating traditional financial problems of transparency, corruption, and economy unevenness, has been well documented in his whitepaper that says:
“Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.We propose a solution to the double-spending problem using a peer-to-peer network.The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without re doing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effortbasis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.”
A money based on Trust-less cash system
We have come a long way since bitcoin’s inception in the year 2009. Up to this date, Bitcoin has been continually proving its purpose, to bring back the real value in money by being a “trust-less” cash system that breaks the barriers of doubt and uncertainty in a way never seen before.
Satoshi Nakamoto understood the problem in conventional currency and by pointing out in his peer-to-peer website “bitcointalk” he stated:
“The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
By building a censorship-resistant type of currency, governments are in no way able to seize funds of its citizens. This gives back the power to the oppressed and the unbanked to be heard and to take full control of their finances.
Bitcoin will put an end to the never-ending cycle of spending spree and uncontrollable money printing of the governments and banks.
Fact! Bitcoin is a fixed asset, and there will only be a total of 21 million coins by 2040 “let that sink in for a minute.”
Bitcoins are not issued by banks, government, the Fed or any central entity. Bitcoins could not be printed but are mined by solving complex mathematical problems which is called mining.
Solving these complex mathematical problems are intentionally designed to be resource-intensive and difficult. That difficulty and the resources needed to mine Bitcoins are what add value to it. But what gives bitcoin more of its value is its scarcity — as bitcoin’s maximum supply protocol is set to 21million.
Right now, what drives the volatile price of Bitcoin is “speculative interest.” To drive the price of Bitcoin through speculation is,(in my opinion)the danger every investor has to take before Bitcoin finally reaches mainstream adoption.
It is true that Bitcoin is still in its infancy stage. This means more rooms to grow and further improvements and developments in this new technological innovation is on the horizon.
There is just one question left to answer. Will you continue to Trust the current financial system and all its endless mishaps? Or are you ready to join the Trust-less system that is made to bring back the power, the control, and the voice to back to the people?
Published at Sun, 29 Sep 2019 04:08:53 +0000
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