Can Bitcoin be the future currency?

People, Bitcoin has been on the news for the past 3 years now. On one side while we have got a set of Billionaires who believe that is absolutely Bullshit. On the other side, we have got a set of Billionaires who think that Bitcoin is the future. While on one side we've got people who believe that Bitcoin is a threat to the world economy. On the other side, we've got people who believe that Bitcoin will be the very foundation of the world economy in the future. And I know for the fact that you don't care about these things. Anyways, so, for the past few months, I've been doing some intense research to get the sense of the whole Bitcoin hype. And today I'm about to make a very bold and calculative prediction as to why I believe Bitcoin is the future. And hopefully, by using my calculations you'll be able to open up gateways of opportunity for yourself.

So according to me, there are three reasons why Bitcoin is the future. The most fundamental reason of all has got to do with exactly is the meaning of a currency. Now, people, on the outside if you ask somebody as to what exactly is the meaning of a currency. They would tell you that it is a standard commodity that can be traded and is recognized by some national or international body. But the truth is, even if no government or an official body recognizes a currency it can still be extremely valuable. At the same time, despite all the government recognition in the world still, a currency could be absolutely useless. For example, Let's say tomorrow you go to buy coconut water, alright? And you have got 10 crore rupees in your Google Pay account. If the person selling coconut water says that he will not accept Google Pay despite you being a millionaire you cannot even buy something as small as coconut water also. So, even if with all the recognition that is there for digital wallets and the rupee as a currency. Your money is absolutely worthless.

At the same time, I don't know how many of you know this but then in prisons in America Ramen Noodles are used as a currency, which means if you're a prisoner you can exchange Ramen Noodles and get whatever you want. In fact, in a 2016 report, it was stated that the value of the Ramen Noodles inside the prison goes as much as 10 times its MRP, which means if you have got a packet of Ramen Noodles that costs $50, in prison, you could exchange that very same packet to buy $500 worth of commodities. So, this is what we call informal currency. Now if you see who the hell recognizes Ramen Noodles, let aside the government, not even the prisoners. Then the question is how the hell has it been operating as a currency for decades then? Well, that is because a currency, fundamentally, does not require recognition from some official body. It just requires two things. 

 

Number One, it needs enough people who believe in the currency, and Number Two, it requires a network that can connect all of these believers so that they can carry out all the transaction. That's it. FULL STOP. if it has believers that can get in touch with each other then again the currency is absolutely useless. For example, Let's say you go to a remote village in India tomorrow and if you have got, again, 10 crore rupees in your Phone Pay and if you want to buy a Wada Pav. You cannot buy Wada Pav unless you find another guy who accepts Phone Pay. So, if you see even though millions of people all across the world, In general, believe in digital wallets. If you cannot find another guy, who accepts Phone Pay, you again, cannot carry out a transaction. Therefore, for a currency to operate you only need two things which I mentioned above. That's it. Now, when it comes to Bitcoin, the most amazing thing about it is that Bitcoin has a lot of believers and not just that these believers also include people like Elon Musk and Jack Dorsey who is this context is acting as influencers which means what by using their influence they can multiply the number of believers in the market which will eventually get enough believers in the market to turn Bitcoin into a mainstream currency. A very simple example of the same is the $1.5 Billion worth of Bitcoin that was purchased by Tesla. Now, when Tesla publically announced that it has invested $1.5 Billion into Bitcoin and the fact that they now plan to accept Bitcoin millions of people across the world started believing in Bitcoin and started investing in Bitcoin. As a result of which the value of Bitcoin shot up. Therefore, when more such companies start using their influence. Bitcoin will automatically become mainstream. That is my first reason why Bitcoin is the future, which is the number of believers in Bitcoin is increasing slowly and steadily and thanks to the internet, the network to carry out this transaction has always existed. 

My second reason has got something to do with what was mentioned by a startup legend who goes by the name Naval Ravikant. Now, in the Joe Rogan podcast, Naval stated that if the country realizes that its currency is losing value or maybe it is at the brink of hyperinflation then it would use its assets to buy Bitcoin silently and then announce to the world that "We have bought Bitcoin". And then it will start using it as a currency. And this is also applicable to any kind of financial emergency for that case. For example, now, let's take a hypothetical situation, alright? Now, this is hypothetical so don't take it seriously. Let's say we need 20 lakh crores for covid relief in India, Okay? So tomorrow what the Indian government will do is it will invest in Bitcoin silently and then make a grand announcement to the world that "We have invested in Bitcoin" and the fact that we plan to accept Bitcoin as a currency. Now, the moment this news rolls out millions of people, possibly, billions of people will rush to invest in Bitcoin. The value of Bitcoin will shoot up and then two things will happen. 

Number One, India could use its return on investment for covid relief, and Number Two, Bitcoin will become mainstream. Now, on the outside, it might look like a very far-fetched idea but the reality is this happening right in front of our eyes and it's just that we haven't noticed it yet. Now, this has something to do with the peculiar investment that Tesla made into Bitcoin. So, if you've following the story lately, you'd know that Tesla saw a meteoric rise in its stock value in 2020. So, much that Elon Mush himself saw his net worth increase by $140 billion. Now when all of this was happening everybody was talking about it. People were making calculations as to if you had invested $100 into Tesla how much money you'd make today basically anything that they do with a goldmine. Now, this kind of massive shoot-up of stock value happens there is a certain degree of fear in the minds of the investors that begins to linger because people often start to suspect if it is a bubble that is just about to burst. And the fact that they might lose all their money. Now, when this kind of sentiment is prevalent in the market just like a bubble takes just a slight touch to burst. It takes only a few bad news headlines for the market to panic and then the stock to crash. Now, in the case of Elon Musk, even something as lame as he smoking weed at a podcast also results in something disastrous. So during this time, Tesla invested $1.5 Billion into Bitcoin, and here's the most surprising fact of all. In the year 2020, Tesla's profit was $271 million, and the profit that they made through Bitcoin was one Billion dollars. And here's where it hit me that there is something that I'm not seeing. So, I started getting deeper and deeper, and here are the numbers that I found. Now, this is coming from an analysis that was conducted by GLJ research which shows that there are two important demand indicators that suggest that Tesla had a problem stoking demands for its vehicles.

Number One, Tesla has already cut the price of its vehicles several times across the International markets which include France, Germany, Japan, and China. And since the new year itself, Tesla has already lowered the price of the vehicle in these four markets about 13 times. Now, this is unheard of because a few years ago, Tesla faced very little competition. So to put that straight, while on one side Tesla's stock is shooting up. On the other side, there is bad news coming from all across the world about the poor performance of the company. Now, this is enough to get the investors to panic during a situation wherein there is already speculation that it could be a bubble. And over here if you see Tesla has very smartly used its Bitcoin investment to overshadow all the bad news so that it can drive confidence among the investors and eventually prevent a stock crash. So if you see, what happened over here is that a billion-dollar company like Tesla has used its influence to get millions of people to believe in Bitcoin, and then eventually, it has been able to save itself from the economic bump. 

Now my question to you is if a Billion dollar company like Tesla could do it can you imagine what will be the impact if a country like India or China does it? And as far as my prediction is concerned, someday some giant country will end up doing something doing like this and there is a possibility that within a fortnight Bitcoin will become mainstream. With that, we come to the third reason. The third reason is pretty straightforward and that is the crypto war that is happening between the US and China. Now I don't know how many of you actually have been following this news but then China is currently mining about 60% of the Bitcoin in the world. And the United States now wants a piece of the pie. So billions of dollars are flowing into establishing a giant setup so that one can be ahead of the other. 

So my point is if two giants superpowers are fighting for something it is very less likely that it'll be something stupid. And that is the third reason why I believe that Bitcoin is the future. Now, most people would say that Bitcoin has a lot of problems. The energy consumption is very very high, the currency in itself is extremely volatile and 100 reasons could be enlisted for the same. But here's a thing guys there are hundreds of problems with the Internet. There are hundreds of scams that are happening even in Internet banking and there are serious security issues even with the very phone that you are holding right now. But if you see, they are an integral part of our lives. Why? Because their advantages outweigh their disadvantages and similarly, Bitcoin as a currency and blockchain as a technology has got such huge potential then it is perhaps beyond the imagination of the 99% of the world's population. And that is also the reason why even if you get an inch closer to understanding its potential by doing some shit research it can give you opportunities that 99% of the world's population can't even comprehend. And that is how I would like to rest my case. If you learned something valuable then just stay connected with me.