Don’t Let Them Steal Your Money
Don’t allow it
To understand Bitcoin and blockchain, it’s essential to first grasp the state of our financial system, where money comes from, and how monetary systems work.
Modern money, created by banks such as the Federal Reserve in the U.S. or the European Central Bank in the EU, is inherently flawed. These institutions patch up economic turbulence without solving the root issues, effectively setting economies on a path to failure. Once you realize that fiat currency is essentially worthless in the long term, and Bitcoin, despite being a volatile store of value, holds transformative potential, everything starts to make sense.
While it’s easy to criticize fiat currency (and rightly so), we must accept that it is the medium of exchange we use daily. Fiat is flawed because it loses value over time due to inflation, but it’s practical for buying goods and services.
On the other hand, Bitcoin’s characteristics, similar to gold, make it challenging for everyday transactions. After all, would you pay for a sandwich with a gold bar? Exactly, no. Bitcoin functions more effectively as a long-term store of value than as a daily-use currency.
Understanding Bitcoin’s volatility is crucial. Being a “holder” of Bitcoin can be appealing, but it exposes you to significant market corrections, sometimes as steep as 70%. Those investing in altcoins often face even harsher drops. The key is to approach this intelligently and make money in any scenario.
One effective strategy is dollar-cost averaging during corrections. When Bitcoin drops 60% or more from its peak, buy in small portions, perhaps three separate tranches, each at further corrections (e.g., -65%, -70%, and beyond). This method allows you to accumulate Bitcoin at a favorable average price while managing risk.
Gold remains an excellent investment for the long term, whether physical or tokenized. It serves as a stable hedge, especially in Bitcoin bear markets. While gold may experience underperformance in the short term, its 10-20 year trajectory has historically proven strong. With many nations actively accumulating gold reserves, its long-term value is expected to grow.
For instance, buying tokenized gold, such as PAXG, during Bitcoin bear markets is a solid move. Even if gold’s value dips temporarily, it will likely recover and appreciate over time.
Leaving money idle is a missed opportunity. DeFi (Decentralized Finance) platforms offer countless opportunities to grow your capital. For instance, protocols like Aave allow you to earn 8-10% interest on stablecoins such as USDT or USD.
There are numerous DeFi products available, many of which operate without KYC (Know Your Customer) requirements. To mitigate risks, focus on projects that have been operational for a substantial period and demonstrate reliability.
The ultimate goal is not to hoard money but to grow and manage it wisely. With proper financial education, disciplined risk management, and strategic investments, you can build substantial capital over 20 years, enough to improve your quality of life significantly.
Don’t expect governments, especially in Europe’s increasingly corporatist economies, to secure your financial future. They are unlikely to reverse the trend of economic decline. The responsibility falls on you to educate yourself, act strategically, and take control of your financial destiny.
Save in Bitcoin for the long term, buying during major corrections. Hedge with gold as a stable, long-term investment. Utilize DeFi platforms to earn passive income on your savings and finally, commit to financial education to navigate and succeed in an evolving economic landscape.
In a world where inflation erodes fiat currency and economic policies fail to protect individual wealth, the power to secure your financial future lies in your hands.