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Recently we humans have artificially created something which is finite known as Bitcoin. Let’s assume with the theory of infinity, we have and our clone human species has created something which is a more or less powerful instrument like Bitcoin. Will that make Bitcoin infinite? No way!!! Even if we somehow create a communication system (The Zeus internet) which matches the speed of light, it will still take millions of years to send or receive bitcoin and complete a single transaction and add it to the block.
Bitcoin was created as a permissionless, borderless, transparent, peer-to-peer network and most importantly a decentralized currency run by decentralized nodes 24/7 without any outage so far which in turn provides us ownership and freedom with our money. However, later it is also seen as a hedge against inflation. If it is a commodity to hedge against inflation with limited supply then people will keep holding as much as they can, with the anticipation of future gains, Will this make bitcoin a Ponzi?
We have recently seen or Ponzi, where prices crashed within a few days and people lost their life savings. Was it a teaser and bitcoin is next? (I am not comparing Luna or GameStop with Bitcoin otherwise bitcoin maximalist bots will attack spam)
The question here is belief, do they all follow the same initial belief and end up in a Ponzi scheme? No!!! Bitcoin is fundamentally very strong (take some time to read ) backed by blockchain technology watched over by millions of people in real-time, used as a cross-border payment mechanism, validated by decentralization nodes by solving complex hash problems () and a lot of more hidden features.
Let’s dive into the Economics of bitcoin, if there is a finite supply of 21 million and as of now the human population is over 7 billion, not every human being will own a whole bitcoin. Thanks to Satoshi for fractionalizing 1 whole bitcoin to 8 decimal points, known as sats. By doing some simple maths, 1 bitcoin = 100,000,000 sats then 21 million bitcoin = 2.1e+15 or around 2.1 quadrillion sats, which would be enough for every single human to own some sats as we are moving towards a .
So why not everyone buys it and accumulates as much as possible with the anticipation of future gains? Well nowadays it is super easy to buy bitcoin with just a click on any soap-sized devices, the real problem comes with the ownership and self-custody wallets. Where bitcoin provides you with ownership of the money and data. Most of the apps which facilitate crypto buying hold the ownership and custody of your crypto. As famously said “Not your keys not your crypto”.
Ownership and Freedom have a cost, if you don’t have them then you should ask yourself who controls your life. Also, we have to find creative ways to make this cost more efficient not cheap. We do have cold wallet providers like ledger, trezor, etc. but they are expensive to buy also we can’t scale and make them easily accessible to meet over 7 billion population.
It’s a 2-way road, where efficient tech needs to be built around bitcoin and people need to educate themselves to bear the cost of ownership and freedom by understanding bitcoin. We are really super early in understanding the full potential of our future money.