What is Bitcoin and what is it not?
Value memory
Bitcoin is a significant store of value, not only for individuals but also for companies, as it offers long-term value preservation and inflation protection through its limited supply, decentralization and increasing adoption. Tens of thousands of companies already have bitcoin on their balance sheets for long-term investments to hedge against the inflationary financial system.
Bitcoin not crypto
Bitcoin is fundamentally different from “cryptocurrencies” as it is the first and only truly decentralized digital cash and cannot be controlled or managed by any individual. With a maximum limited supply of 21m and the proof-of-work mechanism, Bitcoin offers maximum security against inflation and attacks on the network. Cryptocurrencies, on the other hand, are centralized, inflationary and only secured by complexity and algorithms.
Energy
Energy consumption by PoW is an essential feature of the network that ensures its security and immutability. These energy expenditures make attacks extremely expensive and therefore impractical. Energy consumption is a “cost of trust” that is necessary for a secure and decentralized financial system. The energy overhead is not a bug, but a significant feature that underscores the value and robustness of the Bitcoin network.
Means of payment
Bitcoin is digital cash without borders, enabling fast, secure and inexpensive transactions worldwide, independent of banks, state restrictions (by governments) and geographical barriers. The use of bitcoin as a means of payment is constantly increasing and banks are also working on deep networking in their infrastructure.
Growth market
Bitcoin opens up significant growth opportunities for companies through new business areas, innovative financial products and access to a global, decentralized payment network. This is demonstrated by the fact that more and more Bitcoin-based companies are emerging worldwide, but also in Germany. These companies are pursuing similar interests and have not yet had a voice in politics, nor have they been consulted in the legislative process.
Progress
Technological advances, particularly through second-layer technologies, are improving the efficiency and application possibilities of Bitcoin. Growing institutional participation strengthens confidence in the market as more and more companies recognize the potential of Bitcoin and invest. In addition, the global economic environment means that demand for independent and decentralized financial solutions is increasing, particularly in unstable regions, which is further promoting the growth of Bitcoin.