What is Bitcoin

Welcome to todays newsletter!
Today we will talk about what bitcoin is and how it possibly can replace gold and the current financial systems.

Gold can be confiscated, regulated, or controlled by governments, but Bitcoin’s decentralized nature makes it difficult for any single authority to take control. Bitcoin operates on a global network of nodes, with no central entity in charge. This provides a level of censorship resistance and freedom that gold can’t offer in the same way.

There will only ever be 21 million Bitcoins in existence, making it a finite resource. This fixed supply contrasts with fiat currencies, which can be printed indefinitely, leading to inflation. Gold has long been valued for its scarcity, but Bitcoin offers a digital version of that same principle.

Both Bitcoin and gold have historically been seen as hedges against inflation. As central banks continue to print more money and fiat currencies lose purchasing power, people look to assets like gold and Bitcoin to preserve value. However, Bitcoin’s fixed supply makes it an even stronger hedge against inflation than gold, whose total supply still grows (albeit slowly) through mining.

In short, Bitcoin could replace gold as a store of value because it offers many of the same benefits—scarcity, security, and being a hedge against inflation—but in a more convenient, divisible, and digital format. As the world shifts toward digital assets, Bitcoin’s advantages may position it as the "new gold" for the digital age.

What is an ETF and how can it help Bitcoin replace gold!
An ETF (Exchange-Traded Fund) is a type of investment fund that holds a collection of assets like stocks, bonds, commodities, or even cryptocurrencies, and it is traded on stock exchanges like a regular stock. ETFs allow investors to buy shares that represent a proportional stake in the entire portfolio of assets, rather than investing in each individual asset separately.

A Bitcoin ETF simplifies the process of investing in Bitcoin, making it more appealing to traditional investors who may be hesitant about directly buying and managing cryptocurrencies. This could lead to more widespread adoption, particularly from institutional investors, retirement funds, and conservative retail investors.

Crypto news

1. Uae eliminates values added tax (VAT) on Bitcoin!
   No capital gains tax
   No tax on Bitcoin transactions
   BTC salaries approved in Dubai

2. BITWISE files for XRP ETF

3. Today (7 October) Court will decide when FTX have to payback their former customers in Bitcoin!