Why Bitcoin is Important

Bitcoin is still the best cryptocurrency. Let's look at what makes Bitcoin different.

This is written in simple language so that anyone can read, understand, and explain it to their friends. Let's dive in!

Bitcoin as Sound Money

Regular money, like dollars or euros, can lose value over time due to something called inflation. Inflation is when governments print more money, making the money you have worth less. Bitcoin is different. There's a limit to how many Bitcoins can be created - just 21 million. This makes Bitcoin a "'sound" form of money because its value isn't watered down by endless printing. It's like having a pie with a limited number of slices, which makes each slice more valuable.

Decentralization of Bitcoin

Most things in life, like banks or social media platforms, are controlled by a single entity - a company or a government. Bitcoin, on the other hand, is decentralized. Meaning that it's controlled by a global network where everyone has a say. This makes it hard for any one person or group to manipulate or shut it down.

Bitcoin as a Store of Value

Some assets, like gold, hold their value over time. Others don't. Bitcoin is like digital gold. Even though its price can fluctuate, it has consistently increased in value over the long term. This makes Bitcoin a good place to store your money if you think it might lose value in a bank or under your mattress.

The Network Effect of Bitcoin

Some things get better as more people use them. For example social media is more useful the more people use it. This is called a "network effect". Bitcoin has this in spades. It was the first cryptocurrency, and it has the most users. This makes it more valuable, which attracts more users, which makes it more valuable…you get the idea.

Bitcoin's Resistance to Confiscation

In the traditional banking system, the government can freeze your account or seize your assets. With Bitcoin, as long as you keep your private keys safe (Bitcoin talk for your passwords), no one can touch your coins. This is a big deal if you live in a country with a government that likes to meddle in people's finances.

Summary

In summary, Bitcoin remains relevant because it offers a new, digital form of money that's reliable, decentralized, holds its value, has a massive network of users, and is immune to government confiscation. It's like a financial Swiss Army knife for the digital age. Keep learning, keep exploring, and happy hodling!

PS: at Bitcoin Meetups in Switzerland and all around the world, you will meet Bitcoin beginners and experts.

How to Buy and Store Bitcoin

The safest way to buy Bitcoin in Switzerland is through a bank like Postfinance or Zürcher Kantonalbank. However, most banks store your Bitcoin on their own systems, so you don't benefit from Bitcoin's resistance to confiscation.

Feel free to contact me if you need help getting started or improving your Bitcoin experience.

More from Markus Perdrizat

This article will always be available at https://maol.ch/2025/01/17/why-bitcoin-is-important/

Previously on the ACK Newsletter: You've been hacked, what now?