Education has played a pivotal role in Bitstocks’ value proposition to clients, right from our birth in April 2014 as an advisory and investment house. We saw the massive void between investors’ aspirations and their level of education. Like the beginning of the Dot.com boom, investors wanted to get returns from investing in this new technology called ‘the Bitcoin Blockchain’, but they didn’t really know what it was or how the technology would generate value.

Of course, there is the crowd of so-called Bitcoin advocates that promote it as a speculative asset for the masses, which requires no deeper understanding. Seen one Ponzi scheme, and you’ve seen them all! 

There are also those who have preached Bitcoin as a means to overthrow the existing governing and financial systems. And yet, the inventor of Bitcoin himself, Craig Wright maintains that Bitcoin was not created to overthrow banks or governments

We invite you to download our Bitcoin Myths eBook to see for yourself.

That leaves us asking ourselves how Bitcoin fits in with our current financial and governing systems, and where its value proposition lies.

Bitcoin vs the Traditional Financial System

To me, the key to understanding Bitcoin lies in how it addresses the shortcomings of our current systems. Let’s start off by looking at the strengths and weaknesses of the Legacy Financial System.

The Shadow-World of Traditional Systems

The existing system is the status quo, which means it’s always going to be hard to break away from it. Although the cryptocurrency space likes to boast about Bitcoin’s superiority to the legacy system because of its decentralisation, the inefficiencies aren’t actually related to this premise. 

The real issue is whether it’s transparent or not. Is there accountability? Is there traceability? When there is malevolence in the system, is there a way for benevolent parties to do something about their sovereignty being jeopardised? These are the inefficiencies of the current financial system and the way that society is run in general. These issues can only exist where you have pockets of shadows within the structure of a system. 

In terms of banking, the United States owes trillions of dollars of debt to parties around the world. America also has the largest military on the planet. Putting these two facts together, we should ask: who would America be most afraid of defaulting on? And then, considering what the global debt says about our planetary debt, who are we paying? 

I've always had these questions, and I approach the world with that view to help me understand the inefficiencies that govern our human behaviour. I don't care about what economists, politicians, mathematicians, or PhDs tell us on the TV. For the most part, those are just theories. 

What I care about is the impact of the system on how we live as a global collective. And that's where the inefficiencies within our banking system, societal construct, and educational system become very clear. They manifest their power in how different people live their lives in different jurisdictions. 

Bitcoin as the Beacon of Light

What I found interesting about Bitcoin is that it provides free, equal access to a monetary system built on the principle of transparency. When you realise that Bitcoin isn't just money, that it is essentially a torch or a beacon of light, then you realise that it can be integrated into any existing system to disperse all the shadows. Once integrated, it will also allow it to run more efficiently and more aligned with incentive systems that benefit humanity. 

Let’s take a look at a national government for an example. A democratically elected government is supposed to be a bunch of individuals who represent the will of the people. Yet, that is rarely the case. With Bitcoin, we can implement transparency in every level of government, to enable the citizens to measure their representatives against their mandate. 

Another example is to tokenise fiat currencies on top of Bitcoin to allow us more transparency into the money supply as economic policies come into play.

Although Bitcoin’s future potential is filled with promise of entirely novel applications and business models, its ability to plug the holes in existing systems is what we need right now! We need to shine a light on the shadows within existing systems, and then we’ll be able to march forward to exploring possibilities such as a One World Currency tokenised on Bitcoin. 

Bitstocks Advisory Webinar

There’s so much uneducated capital being thrown around in this space, and it can end in a lot of tears for investors. But, if you do approach the space with a solid fundamental compass, you can brace for the impact of short-term volatility on your portfolio with a view on your long-term goals. 

If you’d like to start on your journey to exploring the long-term value of Bitcoin, we invite you to join our next webinar by reserving your seat here.

 

 

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