Someone recently asked about our videos from the dark days of shit coining. It reminded me it’s time to put an update out there I can just forward.
I’m going to post why I stay Bitcoin only, no shitcoins. And why I just hold it and will always hold it.
None of this is financial advice and I don’t care what you do. As Bitcoin becomes ubiquitous people will get on board anyway. Also, keep in mind, nothing the average Joe says will make a dent in Bitcoin price or it’s adoption.
Bitcoin is like digital Gold, but far better.
Gold is hard to move and hard to verify. Bitcoin is not.
You can send it anywhere in the world in minutes for dirt cheap.
Even if the Bitcoin fees get high, you can send on it on the Lightning network for nearly nothing.
There will only ever be 21 million making it exceedingly scarce.
It’s the best-performing asset class ever. Better than any stock or commodity.
It used to be worth nothing, now it’s worth over $60,000.
It’s a hedge against inflation.
Since its inception, critics want to call for its death, yet over time Bitcoin has been added to company balance sheets, countries have adopted it, and ETFs have been formed.
Blackrock is the biggest asset manager in the world and has a Bitcoin ETF. They will be advertising Bitcoin to their clients
The Bitcoin network is the most secure decentralized network on the planet.
Decentralized is the keyword. No one can take it from you unless you give it up (willingly or through neglect)
Bitcoin has no CEO, no foundation, and no leader. No legal team. No marketing budget.
Any environmental concerns you’ve heard is bullshit and there’s a reason you haven’t heard it in a while. Bitcoin can use any energy source, including stranded energy and can even become carbon-negative. The shitcoins can’t do that.
The creator of Bitcoin, Satoshi Nakamoto, hasn’t spent any Bitcoin. He’s either a noble person or dead. Interesting none-the-less.
Post Publication Edit: I have no intention of selling a majority of my Bitcoin. The reason is fiat currency is perpetually losing value and I personally believe nation-states will continue to adopt Bitcoin and it will become the defacto currency of the world. I won’t need to sell it. I’ll spend it when needed.
Now a list of why not shit coins (other Cryptocurrencies)
Bitcoin uses proof-of-work. No one allocated themselves bitcoin and then issued it. It had to be mined and this couldn’t be cheated. There’s no cheating physics.
Shitcoins like Ethereum or Cardano have endless issues and no compelling reason to hold value in it over Bitcoin.
Shitcoins like Ethereum running proof-of-stake had presales or were premined. Suckers came in later and bought it based on programming hype.
The compelling reason for Bitcoin is unconfiscatable & censorship resistant money with irreversible final settlement. ‘Cryptos’ promising faster transaction times are not faster when you account for security of the final settlement.
Bitcoin is truly decentralized. Shitcoins have foundations, teams, centralized validators, and censored transactions. People have even had their funds frozen on these other chains.
Bitcoin has first-mover advantage.
It has the deepest liquidity.
It’s the better store-of-value.
It has the most secure network that survives despite scammers who are shilling their shitcoin bags whining that Bitcoin should or will die.
Smart Contracts are not needed for unconfiscatable, censorship resistant money guaranteeing secure final settlement. If for some reason you still need that, there are developers building that. Seek out their apps if that floats your boat.
The true use-case for smart contracts, and its actual practical implication in the real world is the zero-sum game of building a house of cards for squeezing out yields at insane risk, getting loans held by teams that rug their customers, or putting JPEGs on a blockchain which will become worthless and you can’t even sell them to realize a loss.
Diversification means nothing when you’re holding a sinking asset. Look at charts of any crypto vs Bitcoin. They all lose value against Bitcoin over the long term.
Community. Bitcoin’s community really is something special. Other crypto communities will briefly have unity and esprit de corps until their scam coin starts collapsing. Then they eat their young.
Find a shitcoin. Look at it’s chart 3 years ago. Now think, would I be better off if I held that shit coin until now, or Bitcoin?
Let’s not forget the nightmare of taxes. You’ll be shocked what is a taxable transaction. Even withdrawing a token representing liquidity from a ‘farm’ on some shitcoin chain could be considered a taxable transaction. Wrapping a token? Could be seen as a swap. possibly taxable. Depositing collateral for a loan? It could be considered a disposal. That node you want to buy on that shitcoin chain to get rewards thinking you’ll get to deduct that expense? Think again. Even paying fees is a disposal of property subject to capital gains. You better think wisely if you’re going to start moving around funds and generating a lot of transactions.
How to get started? You get Bitcoin. Probably bought on some exchanges like Swan Bitcoin, Strike, River, Kraken, Coinbase, etc. But if you don’t own the private keys to your Bitcoin, it’s not yours! NOT YOUR KEYS, NOT YOUR COIN. So, send it to a wallet you own the keys to. Do not share the keys or seed phrase with anyone, for any reason. Hold large amounts on a hardware wallet, but smaller amounts can be kept on mobile apps.
A few Mobile apps:
Strike
Phoenix
Muun
Nunchuk
A few Hardware Wallets:
Cold Card
Trezor
Ledger (not open source)
There’s lot of wallets, and more coming out all the time. I just rattled a few off the top of my head.
I had to spit out all this as quick as I could. I’m sure there’s plenty i’m not even thinking of right now. Consider this just the start. My advice, research how Bitcoin works and why its the highest market cap Cryptocurrency. If some one wants to talk to you about ‘Crypto’ instead of Bitcoin, get ready to roll your eyes. Scam incoming. They’re either knowingly pushing a scam or just don’t know it yet.
BITCOIN IS THE FUTURE
Do you have recommendations to add to this article? Feel free to contact me at https://twitter.com/0billionUplink and help improve this topic. I will be making edits over time as needed.
The author spends hours obsessively researching a Bitcoin future. If you like his work, you can tip him through the Lightning Network:
ihave0billion@getalby.com