Written by konex on 08 March 2021
It’s a simple fact: most people do not know a lot about Bitcoin. Maybe you have heard one or two things like the “founder of Bitcoin is Satoshi Nakamoto,” and that “the price of Bitcoin is volatile.” However, there is more to the cryptocurrency story than this that you should know.
Believe it or not; even though Bitcoin is twelve years old (the first ever block was mined in January 2009), we are still in the early adoption phase, so it is not surprising that the basics around how Bitcoin is created and the benefits around the cryptocurrency are still not easily understood.
These days the konex team spends their time promoting the job referral platform, but a few years ago we were educating people on the topic of Bitcoin; mainly through content creation and presentations to interest groups and universities. At the end of our presentations, we would have Q&A sessions, and would often get feedback from the audience expressing their surprise around how bitcoin is mined. The fact that bitcoin is mined using computing power, and not made up out of ‘thin air’ was something that had never occurred to many of them before. The other point that surprised people is that the set number of Bitcoin to be mined – 21,000,000 is hard coded into the program – not one more or one less, and the last Bitcoin is projected to be mined in the year 2140.
The benefits of Bitcoin are rarely considered beyond the possibility of an investment that could give a handful of early investors a rags to riches storyline. Bitcoin has also been in the news a lot recently as a number of high-profile publicly listed companies have supported the cryptocurrency in one way or another. We should also be aware that U.S. banks have been cleared to provide custody of cryptocurrency, thereby removing one of the biggest hurdles to retail and institutional growth. This means it will be a lot more convenient for institutional investors to purchase Bitcoin.
Knowledge is power; so, if institutional investors are gearing up to purchase Bitcoin, you should know how you can benefit too. The key point with Bitcoin is not so much as a store of value, but that it can be spent and received by anyone, anywhere, and at any time without the need for a bank or a government.
This is very different to how things work today. Governments control their local currencies with their monetary policy. They use central banks to issue money, so if they want to print USD $1 trillion and call it a stimulus package, there is nothing anyone can do to stop this from happening. This would not only devalue your currency, but this influx of money would influence the business environment and it is not always in a logical way. Due to the global pandemic we can see the economy is crashing, many people losing their jobs or are under employed, yet the stock market is going skywards with the aid of these stimulus packages.
Experts believe stimulus packages can only strengthen Bitcoin’s position. Bitcoin’s reputation as a hedge against centralized changes to the financial system will be enhanced, and its price will also rise as the cryptocurrency is an alternative store of value outside the traditional banking system. In short, bitcoin acts as a protection against this.
However, being a store of value is not the only value for the cryptocurrency, it is also available for people who need it most. Due to its decentralized nature, bitcoin is essentially unstoppable, uncensorable internet money. The cryptocurrency can be used by everyday people to purchase a cup of coffee or a pizza, but it can also be used by protesters and dissidents around the globe. Think of people fighting the ruling regime in Belarus, journalists in Hong Kong or even dissidents in Russia. Since governments are unable to stop anyone from using the cryptocurrency, it has become an essential tool for these protestors.
So, what if you are interested in purchasing bitcoin? You have heard the media say that Bitcoin is volatile and too risky for retail investors to purchase, despite the fact that institutional investors are doing exactly that. The volatility aspect may be true, but we are near historical highs at the moment, and there is a lot of positive news suggesting Bitcoin will be near USD $100,000 come year end.
How does all this information benefit you? If you researched the cryptocurrency space and believed it was something you wanted to invest in, then you could dollar cost average to work yourself into a cryptocurrency position you are happy with.
This could be an effective strategy, but it will take time to reach your goal. You could accompany your dollar cost averaging strategy with a side hustle that can pay you in Bitcoin so that you could reach this goal faster. This is where konex can help. We are a job referral platform where we reward people who make introductions to job seekers. If the referral is successful, you can earn up to JPY 400,000 in rewards which can be paid in Bitcoin.
If earning Bitcoin without risking your own dollars sounds attractive to you, check the job positions that we have open today.