Learning About Bitcoin Is Financial Freedom – Bitcoin Magazine

by James · October 13, 2022

This is an opinion editorial by The Bitcoin General, a Bitcoin devotee, truth seeker, respecter of individuality and valuer of freedom.

For decades, the legacy financial establishment has exploited its position to manage wealth for the vast majority of investors. On January 3, 2009, Satoshi Nakamoto did something revolutionary: he mined the genesis block of Bitcoin. After witnessing the scandalous events of the Great Financial Crash of 2008, enough was enough. Big banks engaged in reckless behavior with predatory lending practices and unrelenting greed that drove the world into a global recession. Then came the massive corporate rescue packages via the cash register.

Enter Bitcoin.

Bitcoin forged a new path forward. It was a new opportunity to pursue wealth and financial independence for the common people. The grip of the financial elites was slowly loosened, as a new digital asset class was created to loosen its grip on state-controlled domestic money.

Bitcoin is “the people’s money” because no central bank or government controls it. In fact, many governments are so threatened by it, many have imposed heavy restrictions on its use, or even outright banned it.

Bitcoin is a vehicle for financial independence. It creates more financial freedom for the individual, and keeps the authorities’ overreach in check with its robust network. Opposition from the old financial and elite establishment only galvanized this point further. The IMF’s disapproval of Bitcoin is very telling. Bitcoin is a threat to the status quo, and its staunchest proponents know it.

Change is on the horizon, but it is slow. The legacy financial industry is largely still critical of Bitcoin. Due to the benefits of self-storage, Bitcoin eliminates the need for these legacy institutions, or at least reduces their role. Thanks to Nakamoto, almost every person on this earth can now use the possibility of self-storage of their wealth and savings.

Of course, one would be remiss not to acknowledge the learning curve of Bitcoin. Those who are tech savvy will pick it up faster. But one can also dive in as deep as they are comfortable doing. If running a node seems too complex, it does not eliminate the available options for using Bitcoin as a digital medium of exchange. In the case of Bitcoin, investors must assess their own risk tolerance and time preference and proceed accordingly. For some, the ups and downs of bitcoin may prove to be too much, and for others, not so much.

A primary benefit is freedom. Freedom to buy, hold or transfer shares anywhere in the world in record time at minimal cost. Bitcoin is freedom from the shackles of big banks that work with their time, set their own non-negotiable exorbitant fees.

The sad reality is that the pursuit of financial sovereignty has become a punishable crime in many parts of the world. We saw this in Canada last year when Prime Minister Justin Trudeau froze the bank accounts of citizens who did not align with his political beliefs. This was a textbook definition of overreachment.

Of course, it should be a given that all citizens should pay their income tax and not use a digital asset class to evade these obligations (breaking the law should never be tolerated). But choosing the path to financial independence through Nakamoto’s ingenious digital innovation is an option that can no longer be ignored. For those who no longer wish to trust the old system with their hard-earned money, human ingenuity has blazed a new trail.

The big banks have monopolized money for long enough. They have profited, gamed the system, defrauded the masses and manipulated their way to the top all in the name of greed. Seeing top financial leaders attack Bitcoin outwardly proves even more that they see it as a threat. A remote villager in rural Africa can now own bitcoin with as little as a $50 phone. I’ve even heard of some remote communities using good old fashioned handwritten paper books to buy Bitcoin where internet access was limited.

And the beauty of it all is Bitcoin’s deflationary nature. It is the antithesis of the fiat system which is eternal marked by inflation. This is not to say that market falls will not affect Bitcoin. At the time of writing, Bitcoin is experiencing a significant decline which has generated large amounts of FUD. Winning in Bitcoin is like running a marathon. A HODLer once described it as a “head game that challenges you on every level.” In fact, the falls will affect some of us. The volatility of bitcoin will test the nerves of many, and possibly even force them to reassess their risk tolerance. There is no adviser to blame, no stockbroker to escape, no fund manager to fire. One must take the time to learn the protocol, understand its potential and jump into the roller coaster. We’ve seen some extreme highs and some stomach-turning lows. Those with a more risk appetite may need to consider not being exploited on bitcoin. Don’t be under any illusions — Bitcoin is still a risk asset in 2022. However, given the current global economic situation today, it looks set to outperform the old stock market overall as this unprecedented bear market trend continues.

A seasoned investor with many years in the trenches once said, “You have to be ready to take a hit. The blow may never come, but you will be in a much better psychological position if you are ready for it.” HODLing takes balls.

As simple as it sounds, it is more than just a linear “buy and hold” strategy. We have to do our homework. We must educate ourselves and learn the protocol and all its potential. Study the critics, watch the debates and learn the arguments of the naysayers. The point is not to agree with them. The point is to educate themselves to know if bitcoin is the right investment tool for them.