I am Daniel Muvdi, and Bitcoin believer

Many years ago, I entered the investment market using different assets, such as Forex, Stocks, Options, Futures, etc. But in 2016 I decided to invest in an asset that showed good growth potential, called BITCOIN. At that time, the currency was still little known and there were many questions around it, which with the passing of time have been answered. In this article I will try to show how Bitcoin has answered each one of them little by little.

The first question that arises from the beginning of this revolution is: Is it legal to create a currency?

The legality of Bitcoin has been the subject of debate for many years since its creation in 2009, however the latest events around Bitcoin may determine that the cryptocurrency has proven its legality. Let’s review some of these:

1. Bitcoin is accepted in large stores and businesses around the world, Overstock.com (OSTK: NASDAQ) was one of the large retail stores in the United States to accept Bitcoin as payment methods legally.
2. Tesla (TSLA: NASDAQ) accepts Bitcoin on its platform as a payment method, which it later withdrew due to environmental concerns. However, they bought $1.5 trillion worth of BTC averaging at $34,000 per Bitcoin and are still holding it as an investment on their books.
3. We have CashApp from Square (SQ: NYSE), Paypal (PYPL: NASDAQ), among other large payment companies within the United States accepting and selling Bitcoin legally, also in the United States.
4. El Salvador declares Bitcoin as an official currency throughout the country and calls on other countries in the region to accept it legally as a payment method.

The list could be even longer with many mutual funds and ETF requests to legally trade Bitcoin, which can give us a very different perspective than cryptocurrency just a few years ago. This undoubtedly changes the rules of the game for Bitcoin and shows that current conditions are much safer in terms of investment than those at the beginning.

Another big question that arises is related to security: Is it possible that someone can access the Bitcoin network and take advantage of it?

This is an important issue for every investor, to understand if their investment is safe. In the case of Bitcoin, the issue is precisely the integrity of the network (blockchain) and its security system. I do not want to focus on the merely technical aspects, since it would be a very extensive topic, but logic suggests, as Elon Musk has said, that “if it were not safe they would have already violated it.” This is simply because Bitcoin uses an encryption system based on a blockchain where it is the same network that regulates itself and prevents spoofing or double spending. We see the number of participants controlling the network as judges who sign each transaction and validate it, so the only real way that someone can violate the system is if they control the famous 51% of the judges. It is for this reason that the hash rate is so important and the more they participate in this security the more important it will be.

For this reason and to summarize, Bitcoin is extremely secure and the more participants there are, the more secure your network will be, thus creating a practically impossible scenario for the hypothetical case that 51% of these validators can be controlled.

One issue to emphasize is that Bitcoin will also be protected to transcend time. We have seen it before (SegWit) when Bitcoin was updated, and we will continue to see that the community consensus implements little by little, more and more changes in future updates, generating the forks that are necessary to guarantee more security and greater robustness of the network.

Lastly, in this article I want to touch on the question: will Bitcoin achieve mass adoption at some point?

Reality tells us that it is a fact, Bitcoin is growing every day, adoption comes from different parts and is expanding at accelerating rates. However, let’s review two types of adoption that may be generating within the Bitcoin network and how both are essential for the future of this and its development.

First, adoption as a haven of value. This option is increasingly being accepted by BTC investors, who have called the cryptocurrency gold 2.0. Because Bitcoin is scarce and highly liquid, it has generated an excellent refuge platform among investors, where with the growing interest and limited supply (21 million) it puts all the conditions to maintain its value and increase it over time. 

This option is the one that seems most reasonable to me and the one that is expanding the fastest. We see companies like Tesla (TSLA: NASDAQ) putting it on their books and many mutual funds, even pension funds starting to invest in Bitcoin, which lets us see the incredible adoption of BTC in this regard.

Then there is adoption as a digital currency. In this aspect, development is occurring very fast as well, although with an aggravating circumstance, that is that retail sellers require that payments be made in a currency with less fluctuation than Bitcoin, since this being so fluctuating could generate losses to customers. retail vendors. If the currency falls in price when a sale is generated, the sellers themselves could even lose money, for this reason we have seen how stablecoins are being shown as a safer option for retail sellers. Another important issue is the price of fees for small purchases. This can be a problem for retail sales. Solutions have been sought for this, such as: Lighting network, which seeks to combine several transactions using a two-layer Bitcoin, which would greatly lower the prices of these rates and create the conditions for retail sales to occur without this problem. 

At the moment we are working towards both adoptions, but whatever the case, there is no discussion that Bitcoin is managing to enter traditional markets with great force and that its future looks very promising on the horizon.

Bitcoin is no longer a promise. Bitcoin has proven its worth and importance, and both investors and users are increasingly convinced that Bitcoin is a reality.