Welcome to The Bitcoin Street Journal Bitcoin Market Update, Episode 9 Week 20 Friday May 26th, 2023. Stay ahead of the game and keep your bitcoin safe from the government and central banks by tuning in to our daily live bitcoin market updates featuring technical analysis, price updates, market capitalization, and supply updates. Don’t miss a beat – subscribe for daily Bitcoin news and stay updated on all things Bitcoin. In today’s episode, we’ll cover the advantages of Bitcoin as the true digital currency, its decentralization preventing control by rogue players and guaranteeing lasting value, usability, and scalability ensured by Lightning Network, the features of blockchain technology that enable peer-to-peer transactions worldwide and without central authority, and the rise of privacy coins and the introduction of privacy features in Bitcoin.
Excitement around cryptocurrencies is at an all time high, with many people looking for “the next Bitcoin” as a way to get rich quick. However, with little understanding of digital money, it’s easy for newbie investors to fall prey to scams. In fact, out of the thousands of different cryptocurrencies currently on the market, only Bitcoin has potential as true digital currency.
So, how can you navigate the complex world of digital money? This user’s guide to understanding Bitcoin, sh*tcoins, and privacy coins can help. When it comes to digital money, there are a few important features a cryptocurrency should have in order to compete with traditional money.
For example, a limited supply of monetary units is necessary to avoid inflation and the devaluation of the currency itself. The paper money used around the world is fiat, meaning it’s backed by nothing and can be printed into oblivion. Similarly, coins based off an infinite system have no value and will eventually fall victim to inflation or hyperinflation.
When researching cryptocurrencies, it’s important to find out if there’s a coin limit. Those coins with an infinite supply are simply extensions of the current fiat scheme and should be avoided. Instead, focus on Bitcoin and other coins with finite supplies to give yourself the best chance of success in the world of digital money.
Wow, Bitcoin is pretty impressive, isn’t it? I mean, think about it – the entire system is decentralized, and thousands of servers all over the world are constantly running to maintain the blockchain. Even if one computer turns off, the entire system remains untouched. If a country’s Bitcoin servers are taken offline, it won’t matter because the system is running in millions of other places, ready to take over.
This is a major advantage of Bitcoin over centralized systems because it means that no rogue player or government can control it. And if a cryptocurrency is going to be used as true digital money, decentralization is key. It’s the only way to ensure that scammers can’t steal coins or governments can’t manipulate the currency.
Now, let’s talk about usability. People won’t use technology that’s confusing or difficult to use. Since cryptocurrencies are meant to be used as money, they have to be user-friendly. So any crypto worth its salt will have developers who focus on usability. That means fast, easy apps, website payment plugins, and easy transactional ability.
But that’s not all. A cryptocurrency also needs to be scalable. Think about payment processors like Venmo and PayPal. They can process payments within seconds, which is why they’re so popular. For any cryptocurrency to compete with fiat money and payment processors like these, it needs to be scalable too. That means it must be able to process transactions extremely quickly – under three seconds or less.
And guess what? Lightning Network is making scalability a non-issue for Bitcoin. Lightning makes Bitcoin transactions fast, convenient, and easy. So there you have it: Decentralization, usability, and scalability are all key factors in creating a valuable cryptocurrency. And it looks like Bitcoin has definitely got what it takes to make an impact in the world of digital money.
Bitcoin: The OG of Cryptocurrency
Bitcoin is widely recognized as the first digital currency that successfully operates through blockchain technology. It was released in 2009 by Satoshi Nakamoto, a pseudonymous cypherpunk.
So, how does Bitcoin work? The Bitcoin blockchain is essentially a chain of blocks, with each block containing important data such as timestamps, digital signatures, and every single transaction ever made on the blockchain. Each block depends on every previous block on the chain, and this makes it impossible to make any retroactive changes on the blockchain. It’s a completely transparent and decentralized worldwide system that doesn’t rely on centralized banks or governmental institutions to carry out transactions and cannot be defrauded.
Bitcoin is often referred to as “digital gold”. It holds a secure store of value, enables peer-to-peer direct transactions worldwide, and helps people bypass the traditional banking system and inflation. In fact, it forms the basis of all other cryptocurrencies that have come after it.
For an in-depth understanding of Bitcoin, you can read the Bitcoin White Paper written by Satoshi Nakamoto, available at Bitcoin.org.
Identifying Sh*t Coins
According to “Bitcoin maximalists”, sh*t coins refer to all other cryptocurrencies apart from Bitcoin. These coins are known to be more scam than currency and lack scarcity and decentralization.
One example of a sh*t coin gone wrong is the Squid Game coin, created in 2021 by two crypto developers. It was based on the popular Netflix series Squid Game, and investor money poured in, pushing the coin’s price from zero to $2,800 within a matter of weeks. Unfortunately, the coin creators pulled the rug from under buyers by disappearing with $3.3 million within three weeks. It left investors with nothing but an empty pocketbook.
Dogecoin, another sh*t coin, was created solely to humor its investors. It has an unlimited supply of coins, which makes it highly inflationary, and no other discernible function apart from giving investors a good laugh. However, when famous billionaire Elon Musk endorsed it on Twitter, the coin’s price shot up by 22% within 24 hours. This gave the coin some credibility in the market, and it’s still being used as payment by small shops and online retailers.
The downside of investing in sh*t coins is that they can fall to zero at any moment. So, if you’re interested in cryptocurrencies, it’s always best to conduct thorough research and consult experts before making any investments.
Have you ever wondered if your cryptocurrency transactions are really anonymous? Contrary to popular belief, Bitcoin and most other cryptocurrencies are not truly anonymous. If a coin’s transactions are visible on its blockchain, it’s considered a “transparent” coin, or in some circles, “surveillance” coins. This means that the entire transaction history, wallets, and amount of coins are visible at any given time. While this is a great tool for government spending transparency, it can also be quickly turned into a massive surveillance apparatus that invades personal privacy.
To maintain user anonymity, privacy coins have come into the picture. They protect user identity by obfuscating wallet addresses and transactions, enabling personal freedom and autonomy in a surveillance state. Privacy coin advocates argue that these coins are essential to the crypto space, as without them, users are vulnerable to corrupt governments, institutions, and bad actors.
However, many Bitcoin-only developers, or “devs,” are working on making Bitcoin transactions private, without using “sh*t coins.” One solution developed are Coinmixers, which allow Bitcoin users to obfuscate identifying data and wallet addresses, anonymizing transaction information.
While privacy coins provide a solution to user anonymity concerns in the short run, privacy features are being built for Bitcoin, making privacy coins unnecessary in the long run. Keep in mind that a coin should have a finite supply, be decentralized, usable, and scalable to have real potential as digital currency. If a coin lacks these features, it’s worthless at best and a scam at worst.
Before investing in any cryptocurrency, it’s crucial to research and analyze the coin first. Don’t just blindly throw money at the next Dogecoin or other trendy coin. Enter the realm of digital money with responsibility and awareness.
In today’s episode, we covered the true potential of Bitcoin as a decentralized, finite currency with lasting value, while exposing potential scams and “sh*t coins” lacking both scarcity and purpose. We also discussed scalability solutions and the importance of privacy for users, with privacy features being built for Bitcoin. Thanks for listening to today’s episode, I’ll see you guys at the next one and don’t forget to subscribe!