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Author: Wilbur Fernandes, compiled by: Shaw bitchain vision
Check out the picture above.What it shows has completely changed my perspective on money, investment and the future.For a long time, I thought Bitcoin was just another “cryptocurrency” – like the thousands of currencies you see on apps like Coinbase or Binance.Oh my God, I was very wrong.
When you first start contacting, no one will tell you this:Bitcoin and “cryptocurrency” are not the same thing.In fact, they are completely opposite.It took me too long to figure this out, and I really hope someone can explain it to me earlier.So let me explain it in simple and easy to understand words.
The biggest lie in the financial world today
When most people hear the word “cryptocurrency”, they tend to generalize it.Bitcoin, Ethereum, Dogecoin, Shiba Inu – they all seem to be just different variants of the same digital currency, right?And that’s exactly what the cryptocurrency industry wants you to think.
But the truth is: Bitcoin is trying to replace our existing, flawed monetary system.Everything else?They are nothing more than companies trying to make a profit from our existing flawed systems.
You might as well think so.Suppose our existing financial system is a leaky ship.Most cryptocurrency projects are like selling you a better bucket to scoop water, more advanced water pumps or more expensive boat decorations.And what about Bitcoin?Bitcoin is creating a brand new boat for you that won’t leak.
Why are almost all the “cryptocurrencies” just “wolf” in sheep’s clothing
Let me tell you something that I was shocked when I first learned about it.Except for Bitcoin, almost all mainstream cryptocurrencies operate exactly the same way as ordinary companies.They have a CEO, marketing team, headquarters and board of directors to determine where you invest.
Take Ethereum as an example.It is run by the Ethereum Foundation and its founder Vitalik Buterin regularly publishes the direction of Ethereum.When they switch from one system to another (from “Proof of Work” to “Proof of Stake”), it’s not because users vote—but because Ethereum leadership believes it’s the best for the business.
So is Cardano — led by founder Charles Hoskinson.Solana is run by the Solana Foundation.They are not decentralized networks, but tech companies that issue tokens rather than stock certificates.
This is why so many people lose money in cryptocurrency “scam”.When you buy these tokens, you are actually buying shares in a company, but this company has no legal obligation to do anything for you.The founder can make decisions that are beneficial to him, adjust his business direction, or simply give up on the project completely.
Remember when Facebook changed its name to Meta?Imagine if Mark Zuckerberg decides to turn to other businesses altogether, your Facebook stock will become worthless.This situation is actually common in cryptocurrency projects.
What “decentralization” really means (this is not the case with most cryptocurrencies)
There is another question that has puzzled me for a long time.Every cryptocurrency project claims to be “decentralized”, but what exactly does that mean?
Most cryptocurrency companies believe that decentralization means storing copies of databases on partners’ computers, rather than just storing them on their own.It’s like a group of friends putting copies of club rules at each other’s homes and calling it “decentralization” because no one has the only copy.
But this is not really decentralization, it is just a company with a good backup system.
True decentralization means that anyone in the world can participate without the permission of anyone.With Bitcoin, you can download the software immediately and start participating in the network, and no one can stop you.You do not need the approval of the foundation, do not need to meet wealth requirements, and do not require anyone’s permission.
Like most other cryptocurrencies?Good luck.To verify transactions on Ethereum, you need ETH worth about $50,000 to $100,000.This directly excludes 99% of the global population.Most of the people who are able to participate are institutions and wealthy people—and these people are the controllers of our current financial system.
Bitcoin: The True Meaningful Rebel
Bitcoin is unique.Very different.When someone creates Bitcoin under the name of Satoshi Nakamoto, they are not trying to start a company or make a fortune.They are trying to solve a problem that has existed for thousands of years: how to create a currency that is not controlled or manipulated by governments and banks?
Here are the special features of Bitcoin:
Fixed supply: The number of Bitcoins will always be only 21 million.No company can print more bitcoins at its own discretion to keep it running.No government can issue more bitcoin to pay bills.No CEO can dilute your Bitcoin by issuing more Bitcoins.This is mathematically impossible.
Everyone can participate: You can use hardware that is cheaper than smartphones to ensure the security of the Bitcoin network.You can send Bitcoin to anyone in the world without permission from any bank or government.You can store bitcoins without trusting any company.
Uncontrolled: Bitcoin has no CEO, no company headquarters, and no board of directors.Its founder disappeared more than ten years ago, and Bitcoin has since been operating on its own.To make changes to Bitcoin, it requires the consent of users around the world—a process so difficult that Bitcoin has maintained considerable stability for more than 14 years.
Actually very safe: Bitcoin adopts a mechanism called “Proof of Work”, which means that the security of the network is guaranteed by computers to solve mathematical problems that require consuming real power.This is not only a clever programming, but also a reflection of physics.To attack Bitcoin, you need to consume more electricity than you get from the attack.
Why Bitcoin consumes so much energy (and why it is actually beneficial)
You may have heard of Bitcoin “wastes” a lot of energy.I used to think so, until someone explained to me what the energy sources actually played.
Bitcoin does not speed up payment processing by consuming energy.Bitcoin uses energy to create absolute truths in the digital world.Every 10 minutes, computers around the world compete to write the next page in the long scroll of Bitcoin’s history.The winner must prove that he has done a lot of calculations and once he wins, the history of this page becomes permanent and irreversible.
This is a revolution.For the first time in human history, we have had such a way to create digital records that cannot be altered, deleted, or manipulated by any authority.When you receive Bitcoin, you can be 100% sure that the coins are real and that the transaction can never be revoked.
In contrast, in other cryptocurrencies, a small group of wealthy validators have the potential to align to change transaction records.Or compare it to your bank account where the bank can freeze your funds, cancel transactions, or even close the account altogether.
Bitcoin’s energy consumption is not a waste, but the cost of building the safest and most trustworthy monetary system in human history.
Expansion of capacity: Why can we win by playing steadily
Another criticism you will hear about Bitcoin is that it is “slow”.Bitcoin processes about 7 transactions per second, while newer cryptocurrencies claim to handle thousands per second.
But the problem is that the foundation layer of Bitcoin is designed like the foundation of a house.The foundation needs to be strong, not fast.Every bitcoin transaction is final settlement, like transferring gold bars between bank vaults.It should be safe and permanent, not fast and convenient.
For daily transactions, Bitcoin has solutions like Lightning Network, which enables instant Bitcoin payments.It’s like having a solid foundation (Bitcoin main network) with fast and convenient rooms (Lightning Network).
Other cryptocurrencies try to make their infrastructure faster, but this is always accompanied by trade-offs.Solana can process thousands of transactions per second, but its network has crashed several times – and that has never happened to Bitcoin.Are you more willing to choose an infrastructure that is as solid as a rock but requires you to build additional floors for convenience, or a faster infrastructure that can be completely collapsed?
Why does the government treat Bitcoin differently
Here is an interesting phenomenon that helps me understand the difference between Bitcoin and cryptocurrency.See how governments around the world regulate them.
Most crypto projects are regulated like companies because they are companies themselves.The Securities and Exchange Commission (SEC) could take action against the Ethereum Foundation, summon Cardano’s executives, or shut down Solana’s development team.These projects have office spaces, employees and decision makers who can be held accountable.
Bitcoin?There is no Bitcoin company available for regulation at all.There is no CEO for arrest, either.There is no headquarters available for closure.Bitcoin is just software that exists on computers around the world, just like email or the internet itself.
That’s why even skeptical regulators acknowledge it’s different.They call it “digital gold” or “commodity” rather than securities issued by companies.Some countries have even designated Bitcoin as fiat currency, which is something they will never take on cryptocurrency company tokens.
The problems (and importance) that Bitcoin really solves
The more I know about Bitcoin, the more I realize it is not trying to be a better payment app or a faster way to transfer money.What Bitcoin is trying to solve is the problem of the currency itself.
Think about it – when we take a step back and look at the current monetary system, we find it quite weird.The government can print money without restrictions, which makes your savings depreciate over time.Banks can freeze your account, revoke your transactions, or prevent you from sending money to certain people or places.Financial institutions can exclude the entire population from the banking system.
For most of human history, the currency used by people is not manipulated by the authorities—such as gold, silver or other rare items.But these physical currencies have limitations.They are difficult to transport, difficult to separate, and easy to be stolen.
Bitcoin combines the excellent characteristics of traditional currencies (scarcity and independence from authority) and the advantages of digital technology (instant global transfers and perfect separability).It’s like having digital gold that can be sent to anyone in the world right away.
Network Effect: Why Bitcoin Continues to Win
As I delve into this field, I discovered one thing.Although thousands of cryptocurrency alternatives are created every year, Bitcoin has been growing and growing.It has the most users, the strongest security, the widest acceptance and the most real-world applications.
From a historical perspective, this makes sense.People always tend to choose the best form of currency at the time.Gold has dominated for thousands of years, not because the government forces people to use it, but because it is indeed better than other currencies.
In the digital world, Bitcoin follows the same pattern.Although the new cryptocurrency project claims to be faster, less costly or more advanced, people still choose Bitcoin for long-term savings and real monetary uses.
When large institutions, governments and businesses get involved in the cryptocurrency space, the ultimate focus is on Bitcoin.They may trade other tokens for speculation, but to store a lot of wealth in digital form, they will choose Bitcoin.
Make the right choice for your future
Knowing this completely changed my view.I no longer think of cryptocurrencies as a means of getting rich overnight or a way to trade the latest popular tokens.I’m beginning to understandBitcoin is probably the most important monetary innovation in hundreds of years.
The cryptocurrency industry spends billions of dollars on marketing, collaboration and hype trying to convince people that their tokens represent the future.But the future of currency is not about complexity, fancy functions or the latest technological innovations, but about returning to sound monetary principles that have been effective for thousands of years and improving with the help of modern technology.
Every cent you spend chasing the latest cryptocurrency trend is a cent that could have been used to get what might be the best form of currency in the world.Every hour you spend researching what altcoins to buy next is the hour that could have been used to understand the currency revolution that is happening.
I don’t mean to preach or convince you, but just share my own ideas, because it would be great if someone could explain these concepts to me when I first entered the industry.Understanding the difference between Bitcoin and cryptocurrency has completely changed my financial management strategy and has also made me more confident in my decisions.
The picture at the top of this article represents a choice that we all have to make.We can accept the idea that everything digital and monetization is essentially the same, or that we can take the time to understand what is actually happening in the fields of currency and technology.
Whatever decisions you make, make sure you make a choice based on a well-understood situation, rather than following the crowd or trusting marketing.Your financial future may depend on that.
