Why do you want to hold Bitcoin? Nakamoto wrote a letter telling you

More than 10 years after Bitcoin came out, the world's first cryptocurrency seems to have come out of another round of bear market cycles. It's a good idea to have only a small portion of Bitcoin before the overwhelming FOMO (fear of missing) sentiment.


Bitcoin is different

Ten years ago, Satoshi Nakamoto, an anonymous creator of Bitcoin, explained why Bitcoin is different from other digital currencies.

The subversive nature of Bitcoin is that it does not need to rely on trust. In addition, the decentralized nature of Bitcoin software keeps it free from attacks—especially if the network is large enough.

The mysterious creator predicts that if people begin to value the digital scarcity, usability and de-trust of Bitcoin, then the price of bitcoin will eventually soar.

One week after Bitcoin went online, Nakamoto wrote in the email :

I think there are more people interested in this in the 1990s, but after a trusted third-party system that has failed for more than a decade (such as Digicash, etc.), they think it is an effort that is doomed to fail.

I hope they can see the difference between the two. As far as I know, this is the first system that is not based on trust. Yes, this is the main reason for attracting me. The real trick is to let people value Bitcoin to make it a currency.

Today, Bitcoin has uptime at 99.98%, which is unprecedented compared to other systems. At the same time, it will dig up a new block every ten minutes without relying on a trusted third-party system.

In fact, the most unpredictable bitcoin at present is the price. Since the supply of bitcoin is fixed at $21 million, price volatility is not surprising, as the output of the new currency is predictable and does not follow supply and demand.

This unit of digital value that cannot be double-flowered is different from any previous "asset."

Bitcoin persisted and became popular

Today, with the exponential growth of computing power (security) and applications, Bitcoin is stronger than ever.

In fact, the least likely to do is to get a value greater than zero. It can be said that the price of bitcoin reaches 1 cent and then equals the dollar price within two years, which is the most important milestone. That is the most vulnerable period of Bitcoin, during which time Bitcoin may disappear at any time.

Today, millions of people around the world are guessing the price of bitcoin, as bitcoin prices have risen from zero to as much as $20,000 in recent years.

At the same time, Bitcoin is used in a variety of economic activities, with an average of more than 350,000 transactions per day. Today, financial institutions are also beginning to get involved in the bitcoin market, with thousands of merchants and some well-known companies beginning to accept bitcoin.

Nakamoto said:

If we still don't use electronic money in some way after 10 years, I would be surprised, because now we already know a way, even if a trusted third party is eliminated, it can continue to exist.

Various applications have appeared on the Bitcoin network, such as lightning networks. It brings immediate and near-zero cost payments and has some innovative use cases.

Nakamoto added:

Once it (bitcoin) is launched, there will be many applications, and you can effortlessly pay the site a few cents, just as much as putting a coin into a vending machine.

Digital scarcity, unlimited potential

Unlike the US dollar and other legal currencies, Bitcoin is digitally scarce. The total amount is 21 million, of which 17.6 million have been dug up.

Therefore, considering that only a few million of the world's nearly 8 billion people currently hold bitcoin, the price of bitcoin may rise. In other words, it is still too early, and if Bitcoin continues to lead the trend, its market value may grow to trillions of dollars.

The Fed’s quantitative easing policy will only accelerate the depreciation of the dollar against bitcoin.

Bitlin's Xie Lin point

Over time, the network effect of Bitcoin and the Xie Lin point (the tendency of people in game theory to choose without communication, making this choice may be because it looks natural, special, or related to the selector) It has also become more and more obvious. This can be seen from the price trend of Bitcoin. It is clear that Bitcoin is becoming an international unit of cryptocurrency.

With time, using bitcoin will be a natural thing. This includes everyday transactions, storing wealth, and much more – just as email and instant messaging applications are now the second nature of people.

Trusting banks, governments and other third parties to store your money (the constantly depreciating fiat money) and private information will be an outdated choice. Once people realize that Bitcoin is an open, voluntary, currency-like agreement and does not require unconditional trust in the bank, people will understand this.

Therefore, it is not surprising that the traditional financial system is so hostile to Bitcoin.

Nakamoto said:

In case it gets popular, it makes sense to hold some (bitcoin). If there are enough people to think in the same way, this prediction will be realized.

Fortunately, Bitcoin has passed the most vulnerable period and miraculously “popularized”. In fact, we may have crossed the tipping point. Therefore, just in case, even if you only buy a small amount of bitcoin, it is a good idea.

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