Don’t Understand Bitcoin? Here’s 24 Reasons You Really Should.

If this is you, don’t worry — this article will set you straight.

What’s the big deal with Bitcoin, anyways?

1. The fiat money system is broken (Government-issued money sucks)

As a form of money, the idea of “fiat” money is a relatively new concept. Throughout history, humans have used different objects or substances as “money,” but it was only recently that this money became what we would call “fiat.” (“Fiat,” in Latin, means “it shall be,” and reflects the idea that fiat money is only valuable because governments declare it to be). Money is a technology almost as old as human societies, and it existed way before empires and governments. Money, therefore is not only whatever a government says is money, but any good with certain properties that make it suitable as a medium of exchange. The idea of having a form of money backed by a government or central bank is actually pretty new.

2. Bitcoin is verifiably “hard money” (They aren’t making any more of it)

To fully understand Bitcoin, you need to understand one central idea:

There will only ever be 21 Million Bitcoins.

Unlike “easy money” that can be effortlessly and freely created (ehem, US dollar), Bitcoin is what’s known as “hard money.” In other words, you cannot make more of it without doing considerable work. The software protocol for Bitcoin itself has a hard-coded limit of 21 Million Bitcoins. At the time of this writing, there are 18,744,550 Bitcoins in existence, with 6.25 new Bitcoins created approximately every 10 minutes. The amount created will become smaller and smaller according to a predetermined schedule, until some time in 2140, when there will be no more Bitcoins left to create.

Bitcoin is literally the most scarce resource on this planet.

How can that be, you ask?

3. Bitcoin is a great investment (and a solid hedge against uncertainty)

Now that you understand the fixed limit on Bitcoin, you will easily understand why it’s a great investment. In a world of infinite creation, Bitcoin is the only truly finite resource I can think of, besides time itself. With more people being born every day (and more people losing their Bitcoin keys, too), there is an ever-increasing amount of competition for an ever-decreasing number of coins.

A common joke in the Bitcoin community: “Money Printer Go Brrr”

4. Nobody “controls” Bitcoin (and nobody can)

“OK, so, wait a second. If nobody can create more Bitcoin, then, like, who controls this thing?”

5. Bitcoin is open source, transparent, decentralized, and democratic

In reality, Bitcoin is a consensus protocol. Baked into the software is an incredible system for expressing support for and voting on changes.

6. Bitcoin is indestructible (Against just about anything you can imagine)

OK, so governments and corporations can’t control this thing… then what’s stopping them from just destroying it instead?

The Bitcoin network spans the entire globe, and is completely decentralized.

7. Bitcoin is 100% Trustless (And that’s a big deal)

We don’t often think about it, but in order to use the legacy “fiat” banking system, we need to trust a whole lot of people.

All you need is about $250 worth of hardware available at your local electronics store to run a fully independent Bitcoin node. No need to trust anyone else, ever!

8. Bitcoin is the only property that can’t be taken away or stolen

One of the things you hear a lot about when you go down the Bitcoin rabbit hole is the idea of “self custody.” Many people are surprised to learn that there is no “customer service” in the world of Bitcoin. If you make a mistake, send a transaction to the wrong address, or lose the only set of keys to your wallet, there is no going back.

Basically, fiat money can be stolen from you before you even earn it! 😂

Bitcoin is different. Nobody can take it away from you. And if you have taken enough steps to have “plausible deniability,” nobody can force you to give it up, either.

9. Bitcoin eliminates the need for banks altogether

For the most part, a bank’s business model is this: charge you to store and use your own money, then turn a profit on that money by renting it to other people, while giving you little if any of those profits.

10. Bitcoin is borderless

Here’s one of the best parts of Bitcoin: it’s the first of its kind, truly global currency. It is native to the internet, and nothing else. This means that it can be transmitted instantly to anyone around the world, without intermediaries. GONE are the days of paying for international wire transfers or 9% western union fees. Bitcoin is peer-to-peer — and that’s absolutely life changing if you’re one of the one billion people who depend on overpriced cross-border remittance services.

11. Bitcoin gives you privacy

I don’t know about you, but I don’t remember when exactly I opted in to having the government and the banking system know my every transaction. Of course, I have nothing to hide — but why is it, for example, that the American government demands to see all of my bank balances and transactions worldwide, even though I haven’t lived there for a decade? I am a resident of a foreign nation, paying taxes in that foreign nation — why does Uncle Sam have his nose up my ass?

The Bitcoin network stores every transaction ever made — but none of those transactions contain personal information about the sender, the receiver, or what was purchased.

12. Bitcoin costs nothing to store.

You might think that this privilege of super-secure, private money would cost something, right? After all, your bank charges you a $25 fee to keep your account open, and your broker a 1% management fee to manager your portfolio. Even robo-brokers charge 0.15%! But not Bitcoin. With Bitcoin, you can store hundreds of millions of dollars, without suffering inflation, and without paying any ridiculous fees of any kind. It lives on the blockchain, free, forever.

13. Bitcoin is cheaper to transfer — no matter the amount

Perhaps you’ve heard, though, that Bitcoin transactions are expensive. Or that “Bitcoin doesn’t scale” because so many people are using it.

The Lightning Network is a little confusing to understand, but you don’t have to understand it to enjoy virtually free transactions anywhere in the world.

14. Bitcoin is faster (yes, seriously)

Another common argument against Bitcoin is that it’s “slow.” Transactions settle every 10 minutes, on average, and you might wait hours or even days for a low-fee transaction to clear. This is true, and yet, I think people who claim this are looking at the wrong comparisons.

Bitcoin blocks settle, on average, 2,500 transactions every 10 minutes.

15. Bitcoin is more convenient

Today, our phones are pretty much our command centers. They handle our calendars, our communications, and even some of our finances. Why, then, are we still using “legacy” banking systems that are not internet native? Why, in 2021, is my bank still asking me to come in to a branch to perform certain transactions or open an account?! Why am I still carrying around credit cards, debit cards, and cash? “Do you have Cash App? PayPal? Venmo? Cash? Zelle? Do you take credit cards?” Ugh. Why do I need to manage so many different channels? And why, for god’s sake, do I need to type in account numbers or other details?

The technology behind Bitcoin might be confusing, but actually paying with it is much easier than traditional payment systems.

16. Bitcoin is the future

When you really look at it, it’s not possible for the legacy banking system to continue business as usual in a fully digital and connected world. There are too many intermediaries. Too many middlemen. Too many boundaries. The system is completely fragmented by country, by bank, and by payment layer. My Zelle + Chase account can’t send to your Venmo / CapitalOne Account, much less your Wise / Lloyd’s Account, your Remitly + HSBC account, or your Payoneer + Whatever account. And even if it could, it would be expensive, between foreign transaction fees, conversion fees, transfer fees, withdrawal fees, and probably even fee-payment fees. The entire system is a mess. A slow, expensive, and archaic mess.

17. Bitcoin is fair (The rules are the same for everyone).

One of the things I hate the most about the legacy banking system is just how incredibly unfair it is. Consider this, for example: as someone with a high credit score, I have access to products that many people don’t. I can get credit cards with awesome perks and cash-back rewards, sign-on bonuses, miles, and a huge line of credit right when I sign up. I can get “premium” bank accounts which pay higher interest rates and charge lower or zero fees for many types of services. Even when I do get charged a fee, I can just pick up the phone, call the bank, and get that fee waived instantly. Plus I get better access to and lower interest rates on loans. Banks are essentially chasing me down to try and recruit me as a customer, throwing an endless supply of money and perks my way, even though they make less money off me, since I never carry a negative balance or take out loans besides mortgages.

Bitcoin doesn’t operate like this, because Bitcoin doesn’t know (or care) who you are.

To Bitcoin, you are just the holder of a set of keys. Those keys may have ₿0.001, or they may have ₿1,000,000. Either way, the protocol is not going to give you any sort of preferential treatment. It’s not going to give you access to features that other people don’t have, charge you fees because you don’t have enough, or give you better transaction rates because of how much you’re worth. Bitcoin is the great equalizer: no matter how much you have, you have the same access and experience as everyone else. Plus, whenever the system improves, those benefits are rolled out equally to every single user on the network.

18. Bitcoin is hope for billions of unbanked

At this point, you might be thinking… “hey, this Bitcoin thing is starting to sound pretty good.” But let me blow your mind a little further: you are probably not the target audience for Bitcoin.

19. Bitcoin is fully permissionless

So how can Bitcoin succeed where legacy banking (and central banking) have failed? I mean, over 2 billion people have been marginalized by this system — there’s no way that some geeky, open-source money from the internet can do any better.

20. Bitcoin is completely censorship resistant

When you join the Bitcoin economy, a few things will probably stand out to you. First of all, you’ll likely realize that “your” money is “yours” in name only (and, quite frankly, hardly “money” at all, but a system of IOUs — but that’s besides the point). In order to actually use your own money, you need to ask permission. You need approvals. And guess what? Your bank doesn’t have to give you those approvals.

21. Bitcoin reduces government control

As you’ve probably gathered by this point, Bitcoin is pretty anti-establishment. Born out of the cypher-punk movement, freedom is part of its very DNA. (As my friend Ari points out, this is kind of ironic, considering the NSA invented the SHA-256 encryption algorithm that it uses!)

22. Bitcoin is more environmentally friendly (Yes, you read that right)

Speaking of war and governments, I want to take a moment to touch on the big “environmental” concern of Bitcoin, with a couple of thoughts.

even if Bitcoin consumed more energy than the legacy banking system — it would be worth it.

Just look at all of the problems Bitcoin is solving. Poverty. Inflation. Remittance. Fraud. Security. Economic disenfranchisement and discrimination. Privacy. Look at how many people Bitcoin can (and will) lift out of poverty. If all Bitcoin did was provide us with sound, borderless money, it would be worth it — especially if you ask someone who has lived their entire life unbanked and on hyperinflated fiat money. After all, money is the foundation of our entire society. Money — as a tool for collaboration — is the reason why we as a species are enjoying such unprecedented peace and prosperity. If better money isn’t worth the energy expenditure and carbon emissions, then what the hell is?

23. Bitcoin is a hotbed of open-source innovation

Over the last couple of decades, the banking industry has given us very few real innovations. You have a card. You can tap the card instead of swiping it, or connect it to your phone to pay your friends. Big. Freaking. Whup. The real innovations, the banking industry keep for themselves. Innovations like algorithms that reorder your transactions so that you get charged more overdraft fees. Or innovations like the types of shitty financial derivatives that caused the 2008 global financial meltdown. They’re an innovative bunch — just not in the right ways.

24. This is just the beginning for Bitcoin.

The best metaphor to help people understand this comes from Andreas Antonopolous, a thought leader who has converted millions of Bitcoin acolytes all over the world. He reminds us that Bitcoin today is roughly where the internet was in 1997 or 1998. We could have never imagined things like Zoom, Netflix, Oculus VR, or Facebook Live back then. We could have never imagined we’d be turning on our lights, watching our nanny cams, and unlocking our doors over the internet from miles away. All we saw was email and basic web pages.

You might feel like you’re “too late” to get involved, but you’re not. It’s still 1997 on the Internet — and you are still one of the first 200 million people to get into Bitcoin.

It’s a deep rabbit hole, and there is a lot to learn and unlearn — but it is well worth it. After all, this is universal human freedom — economic and otherwise — that we are talking about here.

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Entrepreneur, Author, Life Enthusiast. Host of the SuperHuman Academy Podcast 🎙 Get a Free Copy of My 🧠Book Now: http://superhumanacademy.com/freebook

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Jonathan Levi

Jonathan Levi

Entrepreneur, Author, Life Enthusiast. Host of the SuperHuman Academy Podcast 🎙 Get a Free Copy of My 🧠Book Now: http://superhumanacademy.com/freebook

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