The bitcoin just halved — heres why you should take a slice of the pie.
The 63,000th block has been mined and the reward has halved again.
This means that the Bitcoin’s value has become more scarce than ever.
In the long term, every single time that this happens the value of the currency is practically bound to increase.
You can expect a future valuation of 10x or even 1000x the current price in the short span of 10 years.
“Will this generation be able to turn things around and learn a valuable lesson from all of this? I hope so, but I have my doubts. The damage has been done. And as a lifelong student of history, it’s quite evident that human beings don’t learn from the mistakes of past generations.”
― Aaron B. Powell, Voluntary
Should I buy Bitcoins? Look into the past.
That’s a really good question that can be answered by looking into the past. The first prominent example that comes to mind is the currency exchange market in the 13th and 14th century. Effectively way, way, way in the past. During that time the same thing happened except with physical coins.
Back then, banks were not as massive and towering as they were now, instead banks were just wealthy family businesses that went up in smoke every 50 years or so. They were not allowed to loan money for interest and instead hid their transactions behind currency exchange.
Why was that? Well because at the time every major city had their own currency that weighed different amounts. Gold coins from one city like Geneva, Switzerland would be made of a different alloy than the gold coins in Florence, Italy. These banks had branches all over Europe and allowed for a sum to be paid at one place and the equivalent amount in currency to be picked up at another branch. These transactions took 50 -180 days to account for travel times, that’s crazy!
On top of different currencies for every city, many cities would have two currencies one for the wealthy and one for the poor. In Florence there was the Gold Florins and Silver Ducats.
The Silver Ducats were used only by the poor, and it’s value compared to the Florin was sporadic and unstable. That’s why the rich used the extremely stable and much more valuable Gold Florin.
Can you see the relationship between Florin’s and Bitcoins that I’m trying to make?
Now, it’s too late to become the bankers who made all of the real money with Florins, thats true.
But instead, a reasonable and likely possibility is that the Bitcoin be less reactive than other investments and in the long term it’s value will markedly increase to maybe 50 thousand each. Within 5 to 15 years. This means that it will more than beat inflation in the future, and with the continual development of Crypto, it will be the gold standard.
I don’t think that you should put ALL of your hope on Crypto but instead put aside a little bit for the future, so that should it become valuable you’ve got your bases covered.
I work with a pretty cool company out of Canada that looks like WealthSimple.
Also, give me a clap!
