The only reason why you don`t own Bitcoin is that you don`t know enough about it…. Bozhenko Oleh

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      Fig.6 Graph of the transition from one reserve currency to another

      If we look closely at this graph and remember what happened when one reserve currency changed to another, we find that it did not happen by itself. It was always accompanied by the extinction of the issuing state* of the currency, by war, or by its ruin. In all cases, the next reserve currency in the world was chosen to be the one whose country benefited from the war, as it became more powerful, and its money began to be in high demand.

      «Bitcoin is about property rights. It is the technology to provide property rights to eight billion people for the first time in human history. And that’s life, liberty and property» – Michael Saylor.

      Saylor explains that half of the world has no hope of accumulating property while the other half takes risks with their property. Bitcoin is a technology that gives everyone the right to personal sovereignty and their own property.

      Trust is more expensive than gold

      The complete abandonment of the gold standard occurred between 1976 and 1980, when all countries, including the United States, gradually abandoned the gold standard, allowing their currencies to float freely in international currency markets.

      If we had still used the gold standard, the economy and financial system could have had some differences. For example, a limited supply of gold could limit the expansion of money supply and economic growth.

      A more predictable and stable monetary system based on a limited supply of gold could provide more confidence and trust in the system. However, the limitations of the gold standard would create problems in situations requiring rapid mobilization of resources or response to economic crises.

      These concerns led to the final abandonment of the gold standard and the transition to a system of fiat currencies, where the value of money is determined by supply and demand in the market. The gold standard had its pros and cons. One of the pluses was the restriction of the state in the flexible management of the country and the prohibition of the possibility of getting money from nowhere.

      Occasionally, there were situations where a shortage of gold or an excess of gold led to economic problems. For instance, if the country needed a major construction project and the treasury was short of funds, with the gold standard, the government could not simply print money. Instead, it had to suspend construction until the required amount was accumulated. Also, if the government started a war and the citizens were against it, they could cut back on consumption, and the money would stay with the people. It caused difficulties for the insolent government in financing the war effort.

      The gold standard also limited the ability of governments to control the economy and manipulate money. It could also prevent the destructive influence of politicians and government. At the same time, the gold standard gave the population greater financial independence and incentivized the preservation of valuable ideas and innovations without the risk of government impairment. However, history has shown that the gold standard had limitations and led to a shift to more flexible monetary systems.

      Today, we are seeing the development of new technologies, such as cryptocurrencies, that offer alternative approaches to monetary policy and financial stability. These innovations open up new economic and societal opportunities but also come with certain risks and challenges.

      In this way, the history of the gold standard reminds us of the complex interrelationships between government intervention and economic development. The world is constantly changing, and we are learning from the past as we strive to create more flexible and sustainable systems that meet the needs of today’s economy. BITCOIN itself is a tremendous combination of sections of academic sciences and disciplines such as economics and finance, programming, and financial law. Therefore, even with a 2, 3, or 4 educations, a person will not understand the essence of Bitcoin at once.

      One of the most important features of Bitcoin is that it is a currency that has not been known in the world before. It is an entirely new part of the economy, and currently, no single focused education process delivered professionally can explain what Bitcoin is.

      Acceptance of BITCOIN

      Psychology identifies 3 to 7 stages of accepting the inevitable. Here are the three main ones:

      Denial. People in this stage may refuse to accept information about the inevitable event and stubbornly deny its reality. They may look for excuses or seek to find reasons why the event should not happen.

      Anger. People in this stage may display anger and irritation toward those associated with the inevitable event. They may be aggressive and express anger and resentment.

      Humility. People who have reached this stage accept the inevitable event and may begin to find ways to come to terms with it. They may start to find ways to adapt to the new situation or look for new opportunities.

      Given the current trend of acceptance, the price of BTC will grow strongly over the next ten years and then follow a more linear trend. Bitcoin has yet to reach even half of its adoption potential, which means that the highest growth is yet to come. Bitcoin will perform outstandingly in the coming decades when only 4% of the world’s population will use it, and then that number will only increase. In the long term, BTC is expected to grow significantly, and despite short-term declines, we should pay attention to the overall development trend.

      Let’s consider how users came to the World Wide Web and blockchain.

      Figure 7 shows the curves of Internet users and active cryptocurrency wallets over the 24 years of the World Wide Web’s existence. The dotted line indicates the expected growth rate of the number of blockchain wallets based on the Internet adoption dynamics in the past.

      Fig.7 The level of take-up of cryptocurrencies and the Internet

      As we can see, both technologies had a slow start in the first few years. In eight years, the number of Internet users worldwide grew to 500 million, while only 50 million people started using blockchain in the same period of time. It took the Internet a quarter of a century to reach more than 4 billion people. The blockchain user base is projected to grow to 350 million people in the same timeframe (Figure 7).

      The study only covers the period of time when the Web has already become a user-driven phenomenon. The network began to be created in the United States in the sixties, but at that time, it was used only by government organizations. It wasn’t until the nineties that the Internet began to gain noticeable popularity among ordinary people, both in America and the rest of the world.

      The approximate number of Bitcoin wallet owners with a balance of more than zero exceeded 23 million people as of 2020. As of 2023, according to the latest tweet published by crypto analyst Ali, the current number of BTC СКАЧАТЬ