What is Bitcoin?
New to Bitcoin? Let’s answer some common questions you might have.
Over millennia, money has transformed from seashells to gold to the government-issued currencies we rely on today. This evolution of money is a fundamental invention that has allowed human civilisation to grow. And now, Bitcoin is poised to be the next significant leap in this evolution.
After fifteen years, Bitcoin has proven to be rock-solid and reliable, with unstoppable global momentum.
Why Bitcoin?
For many of us, money has become a problem.
From younger generations struggling to get a foot on the property ladder to retirees wondering if their savings can withstand the impact of high inflation to small businesses being squeezed by increases in rent, wages and other input costs.
These problems are all rooted in our broken monetary system.
A system Bitcoin is designed to fix.
Why Can’t Bitcoin be Ignored?
The Internet depends on protocols, the rules that allow computers to talk to each other. There are protocols for email, video, audio, websites, file sharing, and so on. Bitcoin fills the missing gap: a protocol for money.
Bitcoin allows anyone to send anyone money almost instantly, at any time, at minimal cost. All without a banking intermediary and with no possibility of a transfer being questioned, delayed, or blocked.
Compare that with the antiquated and expensive banking system that demands your personal data, which is closed most of the week and unavailable to billions of people.
Why is Bitcoin far Better than Government Money?
Money used to be backed by gold, but did you know this was abolished in 1971? Now, governments and banks can print money at will.
Money printing is the major cause of inflation.
Governments print money to pay for unpopular policies and interest on debt, which is spiralling out of control. Commercial banks create money from nothing every time they make a loan or a mortgage. The UK government now spends more on debt servicing than the NHS, and the US government spends more on debt than defence.
In contrast, Bitcoin is ‘hard money’. With a fixed, predictable and transparent supply, every transaction is publicly available. No one has a special privilege to create more of it, and new Bitcoin can only be released into circulation through work. This makes Bitcoin a great savings account. If you save in pounds in a bank in five years, the real value of your savings will be less than today. The measly interest rates and inflation will mean you are worse off than when you started.
Bitcoin is debasement-proof, and like any network, its value grows as more people join.
Why Britain Must Embrace Bitcoin
For the first fourteen years, Bitcoin was on the fringes. But in 2024, all that changed. The US Securities and Exchange Commission (SEC) approved Bitcoin Exchange-Traded Funds (ETFs). Suddenly, signalling Wall Street’s newfound interest in Bitcoin’s future. Similar ETFs emerged in Singapore, Hong Kong, Australia, and Europe. Additionally, Bitcoin became legal tender in El Salvador, prompting multiple jurisdictions to develop consumer protection laws.
Countries are now mining Bitcoin and adding it to their balance sheets. . Publicly traded companies and pension funds in the US and Japan are adopting Bitcoin as their treasury. A case in point. In four years, Microstrategy’s market cap (MSTR) moved from ~$600m to over $23B. All they did differently was borrow money and buy Bitcoin. Bitcoin is an election issue in the US. The list goes on.
Every week, there is news of another major player adopting Bitcoin.
It is only a matter of time before any competent leader of a publicly traded company recognises that a bitcoin treasury strategy is not only prudent to protect against rampant inflationary pressures but a way to deliver value to shareholders.
– Marty Bent 06/24
The Bitcoin juggernaut is coming. Britain faces a historic crossroads: embrace Bitcoin and forge a path to becoming a powerhouse of creativity, or delay and dither. The choice is ours.
Bitcoin Policy UK does not provide financial advice. We will never recommend that you buy Bitcoin. However, we strongly advocate for getting informed and getting involved. Bitcoin represents the most significant financial transformation of our lifetime.
It takes proof of work to understand, but it’s well worth the effort.
Bill Aronson – CEO Bitcoin Policy UK
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