I’ve Been Hiding My Investment Strategy (Out of Fear) for 6 Years

How do you protect your purchasing power? With code.

As I went down the Bitcoin rabbit hole I discovered why bitcoin was created. It was invented by Satoshi Nakamoto. I became fascinated with him, until I eventually worked out that Satoshi was almost certainly a team of developers, not one single person.

The Bitcoin creators became fed up with the existing financial system after the 2008 Financial Crisis, where the big American Banks were bailed out by the government for their reckless gambling on subprime mortgages. This event infuriated the Bitcoin creators enough to create the first ever digital currency.

The premise was simple: an internet currency, with no founder, that was fully transparent, that was publicly verifiable, with no banks in the middle to create trust, that was secured by cryptography.

The biggest trait of Bitcoin was this:

The inflation rate of Bitcoin was set in stone by code, not humans.

The only way to change the rules set out in the code is through a democratic vote where the network has to agree to change it. The chance of consensus on changing the code was almost impossible given how many voters there were. There have been several attempts to change the code that have all failed.

It took me years to understand why an asset that had no founder and a fixed supply was valuable.

I had to understand money printing. That is, where governments create money out of thin air to give out stimulus checks, finance infrastructure projects, and save the public from a pandemic.

Money printing was a hidden tax on currency.

And I worked for that currency, so therefore, it affected me. I realized Bitcoin was one way to protect the value I had created through hard work. Bitcoin was a store of value.

Bitcoin was a savings account for money not yet spent or invested.

Source: https://medium.com/the-ascent/ive-been-hiding-my-investment-strategy-out-of-fear-for-6-years-b684ce8ea229?source=rss——-8—————–cryptocurrency