Copy of Memes
Bitcoin can be confusing and overwhelming for new folks, don't be alarmed! Even Bitcoin "experts" don't understand it in its entirety.
There is a saying that Bitcoin is everything people don't understand about money, combined with everything people don't' understand about technology. That means there's a lot to learn!
To make it as easy as possible, we've tried to replace traditional educational materials with memes, and (hopefully) meme our way to Texas Bitcoin adoption.
Without further ado, we present to you the Texas Orangepill Rabbit-hole:
Morpheus: “You take the blue pill, the story ends, you wake up in your bed and believe whatever you want to believe. You take the [Orange] pill, you stay in wonderland, and I show you how deep the rabbit hole goes.”
A Inflationary money silently erodes your purchasing power over time.
A Deflationary money steadily increases your purchasing power over time.
Bitcoin having a fixed supply of only 21 million units means it is a money hard-coded with a finite cap and there can never be any more Bitcoin created.
As time goes on, and coins are hoarded/misplaced, it means the available supply of Bitcoin shrinks. As the available supply for sale shrinks over time, Bitcoin becomes more rare, which makes the price goes up. Bitcoiners like to joke this is built-in "Number Go Up" Technology.
It is estimated that ~4 Million Bitcoin are "lost" forever, as early users misplaced their coins thinking they were worthless.
Advice from Bitcoin's unknown creator, Satoshi Nakamoto.
As traditional Fiat systems exclude more and more individuals, Bitcoin is waiting with open arms welcoming new adopters.
Bitcoin is a long term bet that Fiat Central Banks will continue to expand the money supply.
Bitcoin is not a fad, nor "Tulip Mania". It's a vast improvement over fiat and here to stay.
As Cell Phones gobbled up functionality from other types of devices, Bitcoin will gobble up dollars from other types of investments.
As an investment, Bitcoin's absolute scarcity make it a superior store of value. (Like how a one-of-a-kind painting can store value, except there are 21 Million of them).
Traditional stores of value like Rare Wines, Gold, Commercial Property, Cash, Fine Art, and Bonds pale in comparison to Bitcoin's growth. Bitcoin will continue to gobble up dollars that traditionally were invested in other assets.
To avoid a currency crisis in 1971, President Nixon called an emergency meeting that severed the convertability link between Gold and the Dollar.
A Dollar's "worth" is based on it's perception, scarcity, and relative comparison to other items and currencies.
It's a bit more complicated than this meme, but the US Dollar has the biggest network effect and belief structure behind it. Money isn't even real, ya know? Money is the best tool we have to attempt to measure Value, and Value is really what everyone is after.
Dollars are essentially "IOU" notes from the Federal Reserve and the US Treasury. The entire fiat system is debt based, each printed dollar is a debt issued on a ledger. If you didn't issue any debt, aka distribute IOU's, you wouldn't have any currency in circulation.
The Debt is not "owed" in the traditional sense. Another way to say it is that if you paid off the National Debt in full, you would have paid back all the Dollars issued out in circulation. There wouldn't be any dollars left on earth and all USD transactions would grind to a halt!
The entire fiat system is based on debt, all fiat currencies are "IOU's" created from the Central Banks of each country. The "IOU's" are promises intended to be redeemed in the future, created from nothing.
If a Nation didn't issue any debt, aka distribute IOU's, you wouldn't have any currency.
National Debts are not "owed" in the traditional sense. The National Debt is money a Nation owes to itself.
Realistically, Fiat systems only expand, they almost never contract. Even a slight pay down of the National debt causes a currency shortage, as the "IOU's" created from nothing disappear back into the nothing they originated from. For an extreme example, if you you actually paid off a National Debt in full, you would have paid back all the currency issued out in circulation. All fiat commerce would grind to a halt!
The inherent design of Fiat currencies mean that global debts are destined to expand forever.
There is a point when the interest on a nation's debt exceeds it's gross domestic product (it's ability to produce value). Global Debt has risen to alarming levels.
Bitcoin is the best way to escape the effects of monetary expansion; monetary expansion is when governments increase the amount of dollars in existence to pay for government spending.
Did homes increase in value lockstep nationwide? Or did the "ruler" we use to measure value change in length?
Despite being commonly touted as a hedge against inflation, Bitcoin is not a very good hedge on short-term consumer price inflation on the prices of every day products. Rising consumer prices at the store are usually caused by short-term supply chain issues or problems in the business environment.
Bitcoin only acts as a hedge on long-term inflation caused by monetary expansion.
Critics use this misconception about Bitcoin's short-term price swings to say that it doesn't work!