Thread by @BTCBearSlayer

What is "Money" and why is #Bitcoin the best Money mankind has ever seen? Follow this thread for a full explanation. WARNING: You may become "Orange Pilled" if you read and understand this complete series of Tweets. #ThankAMaxi

01 To understand #Bitcoin you must understand what is "money". The purpose of money is to store the value of your labor now so you can spend it in the future. If you saved $20 of silver coins in 1964 you could buy as much or more today with that stored work as you did back then.

02 So why is silver money? Many say because it has inherent utility value like making solar panels, electronics, or jewelry. True, but why was it money BEFORE solar panels & electronics? Because #Silver & #Gold have unique properties that make money MONEY. These properties are...

03 Scarcity & Durability are two properties of silver that makes it good money. Scarcity means it is hard to find & durability means it lasts forever. Plain rocks are durable but they are so plentiful they could never be used as money. Plain rocks are also not scarce so no value.

04 #Silver is divisible & exchangeable. It can be divided (not easily) into smaller quantities to facilitate an even exchange of value between buyers and sellers. I cannot pay you ten and a half chickens for ten pounds of beef but I could pay you one and a half ounces of silver.

05 #Silver is fungible & universally accepted. Fungible means that an ounce of silver is the same as any other ounce of silver. Universally accepted means it is recognized as money by all parties. You can now spend your one & a half Ozs. to buy bread, milk, or whatever you need.

06 #Silver can also be transportable and storable without counterparty risk. Transportable means you can carry your silver money with you in small quantities. You can also store your silver money in your own vault, hole in the ground, shoebox, or wherever you chose to store it.

07 Counterparty risk means that in times of economic hardship, depression, war, bankruptcy, etc. there is a risk that the party holding your money will not be able to give it back. There is also the risk of the party holding your money simply steals it as part of a larger scam.

08 Real Money is also censorship resistant & permissionless. This means that nobody can stop you from spending your money & that you do not need permission to get or use your money. If a government EBT card says you can only buy food & nothing else this is credit not "money".

09 Likewise if your bank blocks a transaction they disagree with then you are being censored. Perhaps they block you from sending funds to Russia because of the war? Or perhaps they block you from making a deposit to a #Crypto Exchange? Or they freeze your funds for protesting?

10 Real Money like silver should also be verifiable and unable to be counterfeit. This is hard with #Silver and #Gold but it can be done. Today many precious metal coins are verified by a certified 3rd party and sealed in plastic cases to protect the authenticity of the coins.

11 Uncertified coins might be counterfeited by plating a lessor metals with real metal or diluting the metal of the coin. Real coins can also be "shaven" or "clipped" by taking off small amounts from each coin before spending them. If done enough times to enough coins it adds up.

12 Finally, real money should be decentralized. This means no central group, corporation or government controls it. #Silver and #Gold are somewhat decentralized now in that anybody can work to recover them and anybody can own and hold their own precious metals if they chose.

13 Real Money stores your labor via unique properties such as scarcity, durability, divisibility, exchangeable, fungible, universally accepted, portable, storable, permissionless, censorship resistant, verifiable, decentralized, hard to counterfeit, and has no counterparty risk.

14 So what is NOT money? Think of the unique properties of real money and compare to the following: bank credit, store coupons, government entitlements, scholarships, grants, loans, tax credits, paper currency, staking rewards, stocks, bonds, dividends, interest, annuities, etc.

15 Why are the rich rich and the poor poor? The rich know the difference between real money and everything else. For generations they've KNOWN the answer to the question "What is money?" whereas everybody else just thinks they know. Most think paper currency is money. It is not!

16 If you are under 50 you have never known a time when real money was still used for the exchange of goods and services or used to create real savings. For your entire life you've been told that pieces of colored paper and coins with no precious metal is "money." They are not.

17 What is this fake money and from where does it come? Paper currency is also known as "fiat currency". Fiat literally means "by decree" & is printed by various governments around the world. The only reason fiat has value is because the central governments says it has value.

18 Look at a US Dollar Bill. On the front top left corner it reads "This note is legal tender for all debts public and private." This means that by law this paper can be presented as payment for both private and public debts. If you refuse to take it then you refuse to get paid.

19 Example: A man mows your yard for $50 & you offer him $50 cash as payment. He refuses & says "No, I want 2 oz. of #silver." You refuse. He sues you and the judge asks him "Were you offered $50 cash?" Yes the man replies. The judge says take the legal tender or case dismissed.

20 What happens if you save fiat currency instead of spend it? Over time it will buy less & less even though the face value never changes. Why? Because fiat is unlimited & printed daily. When a new dollar is printed it steals value from all other dollars in existence. Dilution

21 If you add a pint of water to a can of soup you have diluted the soup. If a company issues a million more shares of stock they have diluted the share value of all the previous stock holders. If the government prints more dollars it dilutes the value of all previous dollars.

22 Because of dilution what cost $1 five years ago now costs $2. Some call it "inflation" but it's really a dilution of the purchasing power of fiat currency. The more a currency is printed the more everything costs in that currency. $1 is $1 but $1 doesn't buy as much over time.

23 I defined the properties of "real money" & have given examples of what is NOT money. I explained fiat currency dilution & why it loses purchasing power over time & why legal tender status gives paper currency any value at all. Next I'll explain why it works until it doesn't.

24 If paper fiat currency only has value because the issuer says it has value then what happens when the issuer fails? During the American Civil War the Confederate States printed their own fiat currency. What happened to the value of that currency after they lost the war? Zero!

25 In the history of this world NO fiat currency has lasted forever. All paper currencies eventually go to zero. This is due to over printing until there is no purchasing power left. This is followed by regime change and the new government starting the fiat scam all over again.

26 But the USA is the "World's Reserve Currency!" True, but many countries have held this status & they all met the same fate. Endless debt paid with endless currency printing. If you hold .gov debt you will be paid back but those dollar won't buy you anything in the end.

27 So why is fiat currency NOT money? Let me recap. Fiat is not scarce & is centrally controlled. It can be censored or requires permission to use. $ can be counterfeit and paper is not durable. Fiat is fungible, portable & divisible but that's about it. Fiat is not "Money!"

28 Again, paper "fiat currency" is best used short term to make purchases or pay bills. "Money" is a long term store of your labor to be used some time in the future. Just because everybody calls paper currency "money" it's not real money, it's a currency. "We are not the same"

29 So what does "Orange Pilled" mean? In the movie "The Matrix" you had to chose between the red or blue pill. If red you are pulled out of the Matrix to see reality for what it is. If blue you remain in fantasy land subject to the programing. #Bitcoin Orange is the new Red Pill.

30 Once you fully understand the difference between currency and money, and why the rich keep the money for themselves and give the plebs fiat currency to play with instead, then you are on your way to becoming "Orange Pilled." Once the truth has been seen it can never be unseen.

31 So why is #Bitcoin the best money mankind has ever seen? I'll start by explaining what is Bitcoin & then compare its properties to other real money like #gold & #silver. Real money is also called "hard money" because it's hard to get & requires a lot of hard work like mining.

32 #Bitcoin is a computer program written by an unknown person or group who went by the name of Satoshi Nakamoto. In response to the 2008 financial crisis the code was released to the public in January 2009. The program is "Open Source" meaning anybody can run it royalty free.

33 The purpose of the #Bitcoin program was to create an unstoppable computer network that allows for person to person payments via a digital token called Bitcoin. This transfer of value between people does not require the permission of banks, governments, or any other 3rd party.

34 To accomplish these transfers of value each #Bitcoin can be divided down to 8 decimal places which makes it the most divisible money in the world. One Bitcoin is represented as 1.0 BTC but is comprised of 100 Million smaller money units called "Satoshi" after the author.

35 Just like one dollar can be divided into 100 smaller money units called pennies or cents, one #Bitcoin can be divided into 100 Million smaller money units called "Satoshi". One Satoshi would be 0.00000001 BTC. 100 Satoshi is 0.00000100 & 1 Million Satoshi is 0.01 #BTC.

36 Many people avoid #Bitcoin because they falsely believe they have to buy a whole Bitcoin or none at all. This is not true. You can buy, sell, send or receive any fraction of Bitcoin you want, between whomever you want, whenever you want. The Bitcoin network is open 24/7/365.

37 So one Bitcoin is equal to 100 Million smaller money units called Satoshi. So what will one whole Bitcoin be worth when one Satoshi equals one cent each? That's right! 1 Million Dollars. 100,000,000 x 0.01 cent = 1 Million Dollars. What if one Satoshi is equal to one Dollar?

38 New Bitcoins are created by "Miners" running the #Bitcoin program which cryptographically validates transactions before committing them to a permanent ledger called the "Blockchain". Every 10 min. a miner is rewarded for adding a new block of transactions to the Blockchain.

39 In the Bitcoin program the total supply is capped at 21 Million whole Bitcoin. Remember all the properties of real money? Scarcity is a major property. As a matter of fact, Bitcoin is the only commodity/real money on planet earth that has a known fixed supply. NO OTHER!

40 There are currently less than 1,770,000 #Bitcoin left to be mined. How do I know? The Bitcoin blockchain is open to review by anybody, from anywhere, at any time. There is nothing to hide. Do you know how many ounces of #Gold are in Fort Knox or dollars in your local bank? No!

41 So far we know that #Bitcoin is extremely scarce, highly divisible, requires no permissions, cannot be controlled by banks or .gov, is censor proof, uses cryptography to validate & secure all transactions on a public blockchain, is transparent & designed for peer to peer use.

42 How did #Bitcoin survive without being shut down? In 2009 only a very few computer enthusiasts knew about Bitcoin. It grew in the dark without any public scrutiny one computer after another. By the time Bitcoin was a "Thing" it was too late. The network was too large to kill.

43 Because it takes a large amount of computing power and electricity to mine Bitcoin and validate transactions it is more profitable to just mine Bitcoin than it is to attack the network trying steal money by reversing transactions. In the beginning many tried but all failed.

44 Today the #Bitcoin network is so huge and decentralized worldwide it's impossible to stop. You'd have to turn off all the electricity on the planet and stop the entire Internet. Even so, once the power came back on the Bitcoin Network would pick up right where it left off!

45 All #Bitcoin transactions are viewable by the public. Anyone can use a blockchain explorer program to search transactions. Each transaction is represented by a cryptographic address. You can seen how much was sent or received between addresses but not who made the transaction.

46 Some #Bitcoin addresses are known to the public like those of Exchanges. This makes it easy for anyone to see how many #Bitcoin an Exchange actually has. If they claim to hold 100K Bitcoin but their addresses only show 65K Bitcoin then somebody is lying! One should never lie.

47 For every #Bitcoin transaction there is a unique sending and receiving address created at random by the Bitcoin program. No two address are ever duplicated but they can be reused if desired. For example you could give many people the same receive address to send money to you.

48 How do you manage #Bitcoin? In order to hold, send, or receive #Bitcoin you must first have what is known as a "Wallet". A wallet is a program that interacts with the Bitcoin network & every wallet address is unique. Wallets can be run from your phone, laptop, browser, etc.

49 All wallets are recovered using a unique "Seed Phrase". This random string of words must be entered in the correct sequence to recover your wallet should it ever be lost or destroyed. Your @Bitcoin lives on the blockchain & the keys in your wallet gives you access to them.

50 Never give out your #Bitcoin wallet seed phrase to anyone. Never take a picture of it, never text or email it to yourself, and never store it on your laptop or phone. Etch it in metal and hide it away. Whoever has your seed phrase can take your Bitcoin. Protect it at all cost!

51 #Bitcoin has all the properties of #Silver & #Gold but some are more enhanced. Portability for example. Gold is very expensive and cumbersome to move in large amounts but millions of dollars worth of Bitcoin can be moved around the world in minutes within a single transaction.

52 #Bitcoin is also easier to store than #Silver & #Gold. You can store the keys to a billion of dollars worth of Bitcoin in a hardware wallet no bigger than a thumb-drive. Try storing a billon dollars worth of silver at home. Even $100k of silver becomes a chore to manage.

53 Another area where #Bitcoin excels over #Gold & #Silver is the fact that it can't be counterfeit. Each Bitcoin or fraction thereof is uniquely identified on the network & cannot be duplicated or double spent. The current state & ownership of all Satoshi is known at all times.

54 What about durability? #Gold & #Silver will last forever. So will #Bitcoin unless the earth & every computer on it is destroyed. Some argue that you can't make things like gold watches out of Bitcoin. True, but if you have enough #BTC you can buy all the gold watches you want.

55 #Bitcoin is pandemic proof. Have you considered the germs & viruses you are touching & spreading with cash? At least #Silver has anti-bacterial properties but damp germy paper is just yuck! Nobody will ever rollup $100 worth of #BTC to snort cocaine and then go spend it. lol

56 #Bitcoin is war proof. Imagine fleeing a war zone with $95K of #Silver. It will slow you down or be stolen. But what if you convert it to Bitcoin before the war? You can escape with your savings by memorizing your wallet seed phrase or storing it in a safe location in advance.

57 #Bitcoin can prevent war. When the $ was pegged to #gold .gov sold "War Bonds" to finance war. The support of the people was needed. Now .gov just prints the $ needed for war without asking. If .gov had to ask the people for #BTC to pay for war what would be their answer? NO!

58 #Bitcoin can reduce pollution. Did you know the natural gas that comes up while drilling for oil is just burnt away? It's called "flaring" & waste that potential energy. Now they can divert that gas to power Bitcoin miners and use it in a cleaner fashion while making money.

59 #Bitcoin can finance new cities. Many locations are very remote and costly to establish. Imagine if Las Vegas had first invested in large solar fields and mined for Bitcoin? The proceeds could have been used to pay for building of the entire city infrastructure over time.

60 #Bitcoin encourages finding new sources of energy. Imagine poor countries with rivers, volcanos, sunshine, wind, etc. It is expensive to collect this energy and send it to where it can be used. But now they can mine Bitcoin onsite and just send the value to be used elsewhere.

61 Why is #Bitcoin secure? Did you know the 52 card poker deck has never been shuffled the same way twice? Bitcoin uses a 256 deck of cards to create Bitcoin key addresses. To guess your private key would be like finding a single grain of sand from all the oceans on earth.

62 #Bitcoin is so volatile! No, Bitcoin is completely stable. $1 is $1 no matter how much it will or won't buy. Likewise 1 BTC is 1 #BTC no matter how many $ it takes to buy one. When the $ is strong it take less $ to buy a Bitcoin. When weak, it takes more. The $ is volitile!

63 But I can't hold #Bitcoin in my hand. Actually you can. They are called "Casacius Bitcoin" & were sold early in the history of #BTC. These were physical coins with a private key hidden under a holographic label. You would peel off the label and enter the key into your wallet.

64 #Bitcoin will be banned! No, that time has passed. Billions of $ have now been invested in #BTC. You can ban yourself from Bitcoin by not owning any, but you cannot ban others from owning or using Bitcoin. If you do ban yourself or your country from Bitcoin enjoy being poor!

65 #Bitcoin is going to ZERO! After all you now know do you really believe that? If so, you can stop reading this tread. There's nothing left to say to change your mind. Congrats! You are officially un-Orange Pillable. Now step to the left and make room for the others to pass.

66 #Bitcoin has no utility! Really? what's more useful than securing your life savings where nobody can touch it? What's more useful than owning an asset that has outperformed every other asset class over the past decade? How is increasing your future purchasing power not useful?

67 The #Crypto Exchange failures PROVE #Bitcoin is not a good investment. No, crypto and Bitcoin are not the same. Nothing has change on the Bitcoin network. If your local Bank CEO runs his bank into the ground does that mean the $ has failed? No, it means that bank has failed.

68 #Ethereum proof of stake is better than #Bitcoin proof of work. Since when has anything of value been created without work? The Bible says if a man will not work then neither shall he eat. God is the 1st to appreciate the value of good work. In life there are No Free Lunches!

69 What makes #Bitcoin unique? #BTC was the 1st. All other #Crypto projects came after Bitcoin. No other #altcoin grew organically without a group, VC, or company sponsoring the effort for profit. Most crypto projects that followed Bitcoin are just money grabs like the FTT token.

70 #Bitcoin doesn't even pay a staking reward like some #altcoins. That's right, because #BTC is not a security; It's a commodity. Bitcoin is Money. Besides, if doubling your money every 12-24 months with Bitcoin is not enough, then how is earning a few % on altcoins any better?

71 #Bitcoin is not a hedge against $ inflation. It depends on the timeframe. If you are talking over 5 months then maybe not. But if you are talking 5 years then definitely yes. The longer #BTC is held the more its purchasing power increases.

72 What is the primary difference between a #Bitcoin Trader and a Bitcoin Hodler? A trader still values the $ more than Bitcoin whereas a Hodler values Bitcoin more than the $. The Hodler believes that eventually all things will be priced in #BTC as well as, or instead of, the $.

73 Why do many #altcoin projects fail while #Bitcoin just keeps chugging along? An "altcoin" is any coin other than Bitcoin. Even #Ethereum. Over 1,600 have failed so far and thousands more will follow. Most are just money grabs with no purpose or real money making business plan.

74 How do I know if my favorite "cryptocurrency" will fail? Is it decentralized? Has it been hacked? Is it widely used? Does it have a leader? Is the price just based on hype? Has it shutdown before? Is it scarce? Is the supply fixed? Was it mined or created out of thin air?

75 Do the "founders" own a large portion of the coins? Every time the price goes up do you feel like you are being dumped on? Does your position feel more like a short-term gamble instead of a long-term investment? Did you buy on hype? If yes, then you might be a "Shit-Coiner."

76 What is the #Bitcoin halving? The reward for mining a new block of transactions is cut in half every four years. The reward started at 50 #BTC, then 25, then 12.5, then 6.25 and in May 2024 the reward with be cut to 3.125 BTC every 10 mins. This halving continues until 2140.

77 How are miners paid after the last #Bitcoin is mined in 2140? Miners are not only rewarded Bitcoin for creating new blocks of transactions but are also paid a small fee for each transaction. These fees will continue forever. By then no fiat currency will exist on planet earth.

78 What is the difference between #Bitcoin and #Crypto? #BTC is the 1st scarce digital commodity that perfected the properties of Real Money. All Crypto projects try to recreate the same old $ fiat scams with rug pulls, tulip crazes, usury, & deposit now but get paid later scams.

79 Why do I prefer #Bitcoin over other investments? #BTC requires NO TRUST. After I buy and store my BTC no other humans or maintenance required. With Stocks, Bonds, Real Estate, etc. I have to trust that some entity or event will not hurt my investment and cost me more time & $.

80 What is a "Bitcoin Bear" & why should they be slain? Bulls believe an asset will rise in value while Bears believe it will drop. There is no reason for #BTC to drop in value except for all the ignorant negativity spread about it. These people need education so they can stop.

81 I created these Tweets to help educate the Bitcoin Bears so they may be less ignorant on the topic of #Bitcoin. Ignorant just means unaware, not stupid. There are many smart people who are ignorant about certain topics. If this has helped you in any way please like & follow.

82 Have you been #Bitcoin Orange Pilled yet?