I have been around the Bitcoin scene for over 3 years now, preaching to my customers and anyone else that would hear me that Bitcoin is going to change the world. I have literally done thousands of successful trades. When I let people know I am a full time Bitcoin trader, it seems to either blow their minds or it goes over their heads. I love what I do and I feel that by promoting and getting others involved in Bitcoin, we actually make the world a better place.
There are 3 main types of people who get involved in Bitcoin. There are those who get involved with Bitcoin as an investment. Bitcoin is a monetary system designed to be deflationary. This means that more than a simply a storage of value like gold and silver over time, Bitcoin is designed to be worth more in the future than it does in the past. This is how the Bitcoin system is designed. On May 22, 2010 was the first known trade of Bitcoin. In this trade laszlo agreed to buy pizza with Bitcoins paying 10,000 BTC for ~$25 worth of pizza courtesy of jercos. As of this writing the market topped out at 1132.26 on November 29 2013. Even with market corrections after that, the price today is $663.27. To put that in perspective those 10,000 Bitcoins purchased for $25 are now worth almost SEVEN MILLION Federal reserve notes (some would call them "dollars").
Were person to have 1 Million dollars and in 6 years turn that into 7 million dollars, that would be considered by most people to be a very, very good investment. Most people including myself don't just have a million dollars laying around to make an investment like that. Back in 1999-2001 between my ex-wife and I were able to turn an idea for a business and a great deal of sweat into a 1.5 million dollar business however it took more than $25 and it ended up imploding after the 9/11 attacks. So I have some knowledge about what it takes to make money.
The concept though that a person made a $25 dollar investment 6 years ago and today it's potential value is over 7 million dollars would be considered to be incomprehensible. On top of that it took no human sweat to create, it was all done on computers! The Bitcoin technology is still going strong after 7.5 years and now has a market cap of over 11 BILLION dollars. This would lead almost anyone with more than 3-4 brain cells to rub together to think, "I'd be kinda tarted not to at least get some of that there Bitcoin."
Another kind of person who gets bitcoin wants to buy stuff on the internet anonymously. I mean really don't we all value our privacy? I know I do. In fact I value my privacy almost as much as I value my free time. Privacy is something that many other people value too. How do I know this? Because I get calls every day from people who are more than willing to pay my fee just to turn their worthless "dollars" into valuable Bitcoins! Unfortunately in our current society the criminal sociopaths that "run" the world, your not allowed to be private in our affairs. Almost everything that human beings do at least in the western world is "monitored". Lets all take a moment and say thank you to Edward Snowden for making that abundantly clear. In a society when anything that people want is scarce, that thing or quality has VALUE. Before Bitcoin was invented, the only way to have financial privacy was to deal in cash. Cash is great person to person, it doesn't work too well across borders or over the internet.
The last kind of person who gets involved in Bitcoin is to one who sees the big picture: this technology is going to change the world! My opinion is that most of these people came from the first 2 camps and then had an epiphany. For me it came early, I have been aware of the ills of Keynesian economics for a great deal of my adulthood. Its really simple, you give a bunch of Criminal Sociopaths the legal right to create money out of nothing and you know what they are going to do? Create money out of nothing! Will they create a system where the schools are dumbing down our children? Yes! Spray chem-trails in the sky? Sure! Have pollutants like fluoride in the water? Why not! Have a legal system that is at WAR with its inhabitants? Of Course! Fight wars in other countries to get our oil that is under their sand? Who is going to stop them! And if you get in their way, what will they do to you? Marginalize, incarcerate or Kill! The Banks OWN the government and the government writes the laws to foremost to protect the BANKS! All other laws are supporting laws to protect the laws that protect the Banks. The Government grants access and license to the Industrial age media and school system, so who is going to talk about this...Crickets.
There are some people that are awake to this information; however, very few are doing anything about it. Personally, I know fraud when I see it so I do my personal best to rout it out. How do I do this: I am a full time Bitcoin trader. I like to inspire others to do what I do. Together we will change the world.
"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has." - Margret Mead
Ok, by now you might be wondering what does all this have to do with the Bitcoin halving?
What is Money?
Bitcoin is Money. Then what is Money? Money is a commodity and a construct of the mind a kind of contract or agreement between parties designed to equalize the perceived value between 2 different things in the 3 dimensional world. Today most money is digital; gold, silver and paper money are physical representations of what is now stored on computers. All money has 6 qualities it has to be:
Scarce, like gold, silver, chickens, corn
Durable, doesnt turn into dust or have a shelf life
Counterfeit proof, this is why coins, are stamped makes verification simple
Portable, gold easier to transport than chickens and paper easier than gold.
Divisible, hard to divide a chicken, with denominations easy to make change.
Storage of Value, doesn't go down in value.
Anything that has these 6 properties can be used as money. Bitcoin has all these properties therefore it can be used as money.
Barter: Stone Age
To make this easy, lets go back 10,000 years. You have corn, I have some chickens, they are both scarce, we each want what the other has. How many chicken is worth some corn? There is no way to look up how much chickens or corn is selling for on the commodity market. Its all perceived value. This is where the "horse trading" comes in. Is what I want, worth more to me than what I got? It was more convenient to horse trade over the value of things, than it was to kill each other over resources, so society prospered.
In order for this kind of transaction to occur however there was an invention that needed to be created and that invention is language.
Iron age: Trading in coins
Fast forward few thousand years. Someone invents the smelter to melt iron, gold, silver. Now we can have swords, shields and coin that can be used as money. Now we want to do a trade. I have some silver, you have the corn. I ask you to accept the silver for the corn instead of the chickens. You say "What am I going to do with this metal. I can't eat it, can't make a plow out of it, I can't make clothes out of it and I can't make a house out of it." I say "Yes, that is true however you see those Roman guys over there? The ones with the swords and shields? They will put you on one of those cross things like the Jesus guy, if you don't give them some of this stuff." At that point you say "Ok, I'll take it". Now it has value. It was more convenient to do business with coins than horse trading for everything and society improved.
Industrial Age: Paper Money
Paper money evolved, because of another invention: the printing press. Just like you can not have gold and silver without a smelter, you can't have paper money without a printing press. Paper money is more convenient than gold and silver, for portability purposes and with denominations made it easier to make change. The bankers of the time who were the former gold and silversmiths loved it because they could create "money" by loaning out paper receipts that represented the actual money they had in their vaults, therefore increasing the money supply. Bankers invent double entry bookkeeping that allowed transactions to occur with negotiable instruments like checks and mortgages. Even though this was inflationary and cause the prices of things to cost more in the future, it made it possible to do more business and society improved.
Digital Age: Crypto-currency
Now that humanity is in the digital age, we are able to have instantaneous communications around the planet. Bitcoin is a technology that allows anyone to communicate value to anyone else anywhere on the planet, that can't be reversed, counterfeited, frozen or censured. Plus Bitcoin has all the properties of money form the stone, iron, or industrial ages. This gives it Value.
When one person sends Bitcoins to another person those Bitcoins transactions need to be verified by Bitcoin network. This is done by what is called "mining", which are specialized computers that are continually grouping the Bitcoin transactions into "blocks" by solving a complex numerical equation. These equations, which when solved, the individual transactions are then "confirmed" and now able to be re-spent again. In this process the Bitcoin miners are continually verify transactions searching for a special number that continually gets harder and harder to find. When this special number is found, the Bitcoin block is "solved" and software a "mining reward" of 25 bitcoins to whoever found them.
The Bitcoins mining reward was not always 25 Bitcoins. When the software was released in January 2009 to 11/28/2012 the mining reward was 50 Bitcoins. In 6 days, on July 9, the mining reward is being reduced by the Bitcoin protocol to 12.5 Bitcoin per block. This means the supply of available bitcoins is going to be reduced by one half! Back on 11/28/2016 the price of bitcoins was $12.25 one year and a day latter or 366 days later, the price of bitcoin relative to the US "dollar" was $1132.26! That is a swing of 92.429 times in one year! Now there are different forces in place today that are not in place then. I don't have a crystal ball. History doesn't always repeat itself, it does like to rhyme a lot. I do know this, the price of Bitcoin went up almost 100 X in one year. That means it IS possible for it to happen again. Were Bitcoin to go up like that again the value against the dollar would be $61314.88. Where history to repeat itself, in 6 days, how many would you want to have. I would say AT LEAST ONE!
Get Bitcoins Now!
Think about it this way, were the global supply of any commodity that people use like coffee, chickens, corn be reduced in half in the next 6 days. What would be the smart thing to do? Buy or control that resource. Already in the past few weeks the market is preparing for this event. The price of Bitcoins relative to Fiat currency has increased from $443.37 on May 23 2016 to $663.27 July 3, 2016 that is a swing of about 50%. Find a local trader and get your bitcoins now. I am available at Localbitcoins.com