As the festive season approaches, you may find yourself being questioned by your loved ones about Bitcoin (BTC) and its relevance. It is time to equip yourself with solid arguments to either educate your curious aunt or ward off your brother-in-law, who just got his economics degree.
In this cheerful journey, let us explore the realm of digital currency and understand why Bitcoin maximalists are so enthusiastic about the first cryptocurrency.
Web 2.0 vs 3.0
The evolution of the web from Web 1.0 to 3.0 has been dramatic. Web 2.0 introduced a social platform where people could interact and collaborate, while Web 3.0 focused on the development of AI and machine learning. There are several books available on Amazon and other platforms that explain the differences between Web 2.0 and 3.0 and how they have shaped the web.
Keep it light
When discussing Bitcoin in a family setting, it’s important to remember to tailor your approach to the individual or group’s perspective and concerns. Don’t let yourself be drawn into a defensive position and overwhelmed with skepticism; be patient and let the arguments do the talking.
To make the conversation more constructive, it’s a good idea to prepare some analogies and real-world use cases related to web 2.0 vs 3.0, the evolution of the web from 1.0 to 3.0 and the books on web 3.0. Rehearse your argument in advance, as it is easy to get lost.
Remember, the goal is not to force someone into accepting Bitcoin but to provide accurate information and allow them to make an informed decision.
Strong arguments for Bitcoin
Before gathering around the Christmas dinner table, it may be useful to be aware of some of the most compelling arguments for Bitcoin:
As web 1.0 evolved into web 2.0 and now web 3.0, the differences between them have been widely discussed in books such as Amazon’s AI and Facebook’s AI. The evolution from web 1.0 to 3.0 has been a remarkable one, and Amazon’s Web 3.0 has been a major player in this transition.
For those interested in further exploring the topic, there are a number of books available on web 3.0, such as those that compare web 2.0 and 3.0 or those that describe the evolution of web 1.0 to 3.0.
Bitcoin: The next step in the evolution of money
Since ancient times, humans have used shells, salt and other valuable materials as a medium of exchange. As empires rose, governments began issuing paper money, which was originally backed by valuable metals. In 1971, the U.S. dollar became a fiat currency, meaning it was no longer backed by gold.
This shift away from a hard standard has been linked to runaway inflation, and politicians have been unable to effectively address the issue. In response, Satoshi Nakamoto introduced Bitcoin in 2008, offering a new evolution of money.
Recent:Should you ‘orange pill’ children? The case for Bitcoin kids books
The web has evolved from 1.0 to 2.0 to 3.0, and now books about web 3.0 are available. Amazon Web 3.0 is a popular platform, and books on web 3.0 can provide more information about the differences between web 2.0 and web 3.0. Additionally, Amazon AI and Facebook AI are two of the most prominent examples of web 3.0.
Bitcoin: Currency vs. store of value
As stated in the white paper, Nakamoto created Bitcoin to be a peer-to-peer electronic cash system. Since its inception, Bitcoin has been interpreted in a variety of ways. Its founder sought to make it a digital currency solely for the people.
Nevertheless, Nakamoto’s dream for BTC has yet to be fully realized. The Bitcoin blockchain can become saturated with traffic as its usage increases, slowing transaction times and driving up fees. While Bitcoin can move large amounts of capital across international borders at a fraction of the cost of the traditional financial system, in some cases, such as paying for a cup of coffee with BTC, it can be expensive due to network costs and slow due to confirmation times. Fortunately, Bitcoin is a continuously evolving network with a dedicated community of developers.
There is a lot of contention within the community, but the ultimate goal of the Bitcoin developers is to provide a reliable, functional and decentralized currency that can be used for payments. Several solutions have been proposed, including layer-2 solutions.
The Lightning Network (LN) is a second-layer scaling solution for blockchain networks, allowing for faster and less expensive transactions by creating off-chain payment channels. Lightning performs all the computational operations of daily transactions in a separate network, which is connected to the main Bitcoin blockchain. As all operational computing is done in many pockets of independent networks, the transactions won’t overload the Bitcoin network. Every once in a while, the LN sends the group of trades to the Bitcoin ledger in one transaction so they are registered. The LN can make BTC a software capable of managing daily payments, using the Bitcoin blockchain for all its positive properties without overburdening the network.
There are many advantages to Bitcoin adoption. Anybody with a cheap smartphone and internet access, or even an SMS network, can use BTC.
Micheal Saylor, the former CEO of MicroStrategy and a passionate Bitcoin advocate, views BTC as the perfect modern tool to hedge against inflation caused by government-issued fiat currencies. On the Tucker Carlson Show, Saylor gave one of the best orange pill displays, emphasizing the elephant in the room. For Saylor, the modern middle-class reliance on cash forces them to work harder to get paid in a weaker currency in a never-ending cycle.
The potential for Bitcoin as an asset is massive. Due to all its engineered properties, the markets could see Bitcoin as the new digital gold. As a perfect inflation hedge, Bitcoin may shift the markets gradually as institutional investors enter. It could absorb part of gold’s $12 trillion market cap, as well as the combined real estate and national currencies market caps of around $200 trillion.
A beneficial side effect from this shift in the markets mentioned by Saylor would be the demonetization of utility markets as the monetization of Bitcoin becomes popular. Some speculative markets would eventually return to their original purpose. Real estate wouldn’t be one of the first choices as a wealth preservation investment, and stocks would price in the actual value of a company instead of being investment vehicles to fight inflation or markets that absorb liquidity injections from money printing.
Bitcoin is digital property
In the future, Bitcoin may be a currency or a perfect store of value asset that could substitute gold. Analysts around the world are slowly but steadily understanding the deeper meaning of Bitcoin as a digital property, which may be the key feature.
Nobody has been able to digitalize money yet. Examples like the successful digitalization of photos, books, education, relationships and communications have been the key to the success of companies like Amazon, Facebook, Microsoft and Apple, which have monetized the capability to digitize certain sectors.
Bitcoin could be the one that hits the bull’s eye, monetizing capital property. Its functionalities give individuals a new form of property rights in the digital realm, providing them with true ownership and control over their wealth without the need of traditional financial institutions.
Society may have found something with integrity that gives people control over their lives in a world where there is a shared feeling life has gotten out of control. Santa, please pack some sats as presents.
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