Bitcoin, Not Crypto

When I started writing this newsletter, I called my publication ‘Bitcoin Not Handbags’.

I realised that perhaps many women new to bitcoin probably wouldn’t understand the play on words.

What does ‘Bitcoin not crypto’ mean?

In the crypto world amongst Bitcoin maximalists you often hear the phrase ‘Bitcoin not crypto’. This implies that Bitcoin is distinct from all other cryptocurrencies or digital assets. It implies that Bitcoin is the most significant or legitimate cryptocurrency and that its unique properties make it fundamentally different from other digital assets.

In a nutshell, Dr Jeff Ross spells it out.

Now Jeff Ross is far deeper and more experienced in the investment world than I am. He runs a capital investment company called Vailshire View here and often writes for The Motley Fool and occasional contributor for Seeking Alpha.

But basically I was saying the same thing.

I would spend about 90% of the workshop talking about Bitcoin and it’s unique properties of being decentralized, secure, apolitical, and permissionless money. Explaining that bitcoin could be seen more as a commodity like gold and silver.

Bitcoin is a new invention. A digital commodity. A new way to store value.

It is a provably computationally scarce digital asset. It is a ledger that contains every transaction that's ever been conducted. And it operates on a network that's been running for 14 years, with a fixed monetary supply, in code. And that monetary supply hasn't changed in 14 years.

What about the rest of the cryptocurrencies?

As Jeff Ross says:

…..all other cryptocurrencies are unregistered software companies that have a token. At least with stock you have equity in the company. The crypto tokens that you own literally give you nothing. You don’t have a stake in the company.

Unregulated securities are risky due to lack of oversight, lack of information, fraud, and potential illiquidity. There are over 10,000 other cryptocurrencies, be careful out there.

You may not be aware that globally countries are putting in place new regulations for crypto. Hong Kong and Dubai are leading the way.

This is a good thing.

Regulatory oversight is necessary for the cryptocurrency market to mature and gain mainstream adoption. It will protect retail investors who may not have the knowledge or resources to navigate the complex world of cryptocurrencies.

Why it’s important to understand ‘Bitcoin not crypto’ and why now?

Just a few days ago, SEC chair Gensler confirmed “everything other than Bitcoin” is a security. You can read the full article HERE

It may take a long time for the SEC to sort through the over 10,000 cryptocurrencies as each tries to prove they are not securities.

Bitcoin = commodity

All the other cryptocurrencies = unregulated securities

For those not familiar with the term security. Security is a catch-all term for stocks, bonds, mutual funds, exchange-traded funds or other types of investments you can buy or sell.

With the whole world veering towards crypto regulation, many believe that once investors realize that they are invested in unregulated securities, there may be a massive influx of capital to Bitcoin.

Buy Bitcoin, not crypto.

Buy Bitcoin, not handbags.

The bitcoin maxi’s out there truly believe that bitcoin will be the new global currency. Only time will tell.

There’s a lot to learn. I’ve guided many newbies in their first steps in opening accounts and wallets, so I’m here to help.

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