Bitcoin, Bitcoin… Satoshi Nakamoto gave us a brilliant invention. But how to formalize this “genius” side with these relatives? If the question “What exactly is Bitmachin?” »Worries you about holiday meals, no stress! Here are a few cartridges in advance to prepare your pitch.
A decentralized, universal, and fast currency
From its creation in 2009, Bitcoin and its network wanted to be completely independent from banks and States. This is made possible in particular by its blockchain. Behind this somewhat strange word hides a distributed ledger: a sort of account book for transactions, common and accessible to everyone, everywhere around the planet.
Anyone can thus verify the reality of expenses from such accounts to such accounts (pseudonymously). It is impossible to cheat, since the fake registry would be different from all the others.
The validation of transactions is done by a network of specialized computers, through computer calculations called mining.
Wherever you are, you and your recipient on the planet, your transaction will be validated in about ten minutes (this is a change from bank transfers), directly over the counter, without going through an expensive intermediary, such as a bank or PayPal.
A safe haven: digital gold
Bitcoin is also increasingly seen as a store of value. This means that, like gold, it will at least maintain purchasing power over time, if not improve it.
Indeed, like gold metal, Bitcoin is rare. Only a small amount is produced, which cannot be increased. This production even decreases regularly (approximately every 4 years), which makes bitcoin deflationary in principle.
In fact, the maximum amount of bitcoins has already been set in its computer code. There will only be 21 million in all, and not one more.
State currency inflation protection
These characteristics make Bitcoin an ideal defense against so-called fiat currencies, that is to say all currencies issued by countries (the dollar, the euro, etc.), which are based solely on trust in these countries. to repay their debt.
Bitcoin does not depend on the goodwill of a government or a central bank, it is impossible to print it at will. Yet it is precisely these massive monetary impressions that have caused (and still do today, see Venezuela) hyperinflation.
When it is mild, inflation is a disguised form of the devaluation of fiat currency. But in the event of hyperinflation, a country’s entire economic system can collapse, with a national currency no longer worth anything.
It is for this reason that large companies listed on Wall Street (like MicroStrategy) and investment funds (like Grayscale) are starting to take an interest in and invest in Bitcoin: to protect themselves from a depreciation of the dollar.
These are all good reasons for your guests to take a closer look at this strange cryptocurrency that is Bitcoin, too. Even if its technology may not be easy to grasp on the first contact, come first discover its revolutionary and exciting qualities!
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