Jerry Fetta- What Is Bitcoin?
I did a video a few days ago about Warren Buffett and Bitcoin. I had great feedback on the video and lots of responses. Some of the questions I got were centered around a video I made on the topic of Bitcoin (click here to watch the video). So I pose the question to you, what IS Bitcoin? And don’t just give the generic answer of “crypto-currency” or “block-chain”. What is it? Like, can you break it down and explain it to a 5 year old? If not, you may not actually know what Bitcoin is. I want to breakdown some critical questions you need be able to answer to really determine if you understand Bitcoin.
What is Bitcoin? Long story short it is a digital currency system. A currency is a method of economic exchange. This means it is a technology that utilizes and stores information that facilitates peer to peer transactions direct between people, without needing a middle man like a bank or credit card company. The transactions appear on a digital ledger that is made publicly available so that transactions can easily be traced and verified. This potentially speeds up the transaction time, could reduce costs, and it could allow more freedom to those using Bitcoin.
Is it an asset? No. An asset provides safety of principal and income. Bitcoin does neither. It is a digital medium of exchange. It is like a digital highway for your money. People don’t invest in highways, governments do. There is not income to be made. The benefit is control. Controlling how, where, and when people can and can’t travel on the highway would be the benefit of owning a highway. This is why governments own currency. They want to control how, where, and when people can use currency. Bitcoin is not an investment nor is it an asset.
Who owns it? If I invest in bitcoin do I own it? No. I am simply storing the value of my USD in the potential to transact with bitcoin. I own nothing. With this being the case, who does own it? Nobody knows. Bitcoin was developed by two individuals, Satoshi Nakamoto and Martti Malmi. However, nobody knows who they are and supposedly they do not interact with Bitcoin any longer and have not since 2010. Who maintains it? Good question! An important thing to note is that Bitcoin is just a digital exchange medium and there are others like it in the marketplace. Without a dominant owner, regulator, and controller, there is a vacuum. A vacuum will always be filled. Somebody (most likely government and central banks) will step in and fill the vacuum.
Is Bitcoin a company? Yes. The definition of company is: “A number of persons united or incorporated for joint action, especially for business.” Bitcoin meets this definition. Those who use bitcoin and established bitcoin are “a number of persons united for joint action, especially for business.” Is bitcoin a corporation or business? No. That is entirely different than a company. Bitcoin is an idea, backed by digital technology and trust, used to exchange.
Bottom-line? Bitcoin is an idea. It isn’t real. No different than fiat paper currency, it is an idea backed by confidence. Right now the confidence can be displayed by the dollar value of bitcoin and based on that, there is still an overall confidence that is very volatile. Before you invest in Bitcoin, read two books: The Intelligent Investor by Benjamin Graham (click here to purchase) and The Creature From Jekyll Island by G. Edward Griffin (click here to purchase).
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential