6 secrets about Bitcoin you didn’t know

Bitcoin: The Investment of the Century – Complete Guide

1. Bitcoin as a Store of Value: A Late Discovery

This is undoubtedly the most discussed topic in 2024-25. My Bitcoin journey began in 2014, when I owned 8 units. My biggest regret? Not studying enough back then.

My Personal Experience

• 2014-2016: Lived for 2 full years using only Bitcoin as my income source
• Interpretation error: Initially believed it would just be a new currency
• Reality: As a currency, it failed. As a store of value, it became the investment of the century
• Consequence: Sold all my units because I didn’t understand its true purpose

The Store of Value Concept

Important to understand: You don’t buy bread with gold. The process is:

1. Convert the store of value into fiat currency
2. Use the currency for daily transactions

Primary function: Protect against inflation and preserve purchasing power over time.

If I had consistently invested 10% of all my salaries in gold or Bitcoin, I would be in a much more comfortable financial position today.

2. Deflationary Characteristics: Why Bitcoin Appreciates

The Halving Mechanism

Bitcoin has a unique system that makes it deflationary:

• Halving: Event that occurs approximately every 4 years
• Effect: Cuts miners’ rewards in half
• Result: Fewer new bitcoins enter circulation
• Consequence: Greater scarcity + growing demand = appreciation

Supply Limitation

• Maximum total: 21 million bitcoins
• Similarity to gold: Finite quantity in nature
• Differentiator: Programmed and predictable scarcity

Passive Income Opportunities

While Bitcoin doesn’t generate native dividends, alternatives exist:

Available synthetic products:

• Bitcoin lending through platforms
• Staking in liquidity pools
• Warning: Involve significant risks and require deep study

3. Self-Custody: Freedom with Responsibility

The Risks of Financial Freedom

Self-custody offers total control but demands preparation:

Personal warning example:

• Even with experience, I fell for a phishing attack this year
• Loss: $1,000 USD in seconds
• Lesson: Even experts make mistakes

Essential Knowledge

Before starting, you need to understand:

Basic concepts:

• Seed phrases (12 or 24 words)
• Address types (SegWit, Bech32)
• Lightning Network
• Hardware vs. software wallets
• Digital security practices

Recommendation: Start with small amounts to learn without major risks.

The Reality of Crypto Communities

Current problem: Many users don’t master basic concepts, as evidenced in forums like Reddit. What’s needed:

• Quality education before expansion
• Accessible and educational manuals
• Focus on qualifying the user base

4. Practical Usage Challenges

Current Limitations

For small amounts: Relatively easy to use For significant wealth: Complex challenges:

• How to pay basic expenses (housing, food)?
• Access to physical cash when needed
• Online purchases without KYC (Know Your Customer)
• Day-to-day financial mobility

The Future of Payments

Prospects with the Trump administration (2025):

• Expected pro-Bitcoin policies
• Possible integration with giants like Visa, Mastercard, and Amex
• Credit cards loaded with crypto
• Estimated fee: 0.05% per transaction
• Benefit: Greater mobility without excessive government oversight

5. Bitcoin: The Investment of the Century

My Financial Journey

Results: Made a lot, lost plenty, lived well for a period Conclusion: Still my best investment since I learned to invest

The Technology Analogy

Historical example (1992):

• 29″ LCD TV in Japan cost equivalent to $2,000 USD
• Today: Similar TV for less than minimum wage
• Lesson: Revolutionary technologies start expensive and become democratized

Benefits of Technology Adoption

• Cost reduction over time
• Time savings
• Improved quality of life
• Real case: Economic transformation in El Salvador

6. Strategies and Recommendations

For Beginners

1. Study first: Understand basic concepts
2. Test with little: Use small amounts initially
3. Be patient: Mass adoption takes time
4. Diversify: Bitcoin + other stores of value (gold, USD)

For Experienced Investors

• Consider DCA (Dollar Cost Averaging) strategy
• Always keep a portion in self-custody
• Study passive income products, but cautiously
• Follow regulatory developments

Long-Term Perspective

Be patient and kind to Bitcoin. The technology is in constant development, and sooner or later, its adoption will be inevitable in all our lives.

Additional Resources

Recommended Reading

• PlanB’s articles on Stock-to-Flow model
• Official Bitcoin documentation
• Self-custody security guides
• “The Bitcoin Standard” by Saifedean Ammous
• “Mastering Bitcoin” by Andreas Antonopoulos

Useful Tools

• DCA calculators
• Halving simulators
• Trusted hardware wallets (Ledger, Trezor, Coldcard)
• Regulated exchanges (Coinbase, Kraken, Gemini)
• Portfolio tracking apps (Blockfolio, CoinTracker)

Key Metrics to Follow

• Hash rate: Network security indicator
• On-chain metrics: Active addresses, transaction volume
• Institutional adoption: Corporate treasury allocations
• Regulatory developments: Government policies worldwide

Security Best Practices

• Never share your seed phrase
• Use hardware wallets for large amounts
• Enable two-factor authentication (2FA)
• Verify addresses before sending
• Keep backups in multiple secure locations
• Stay updated on common scams

Remember: Knowledge has a price, and sometimes we pay cheap or expensive depending on when we learn. The time to study is now.

The Inevitable Future

Bitcoin represents more than just an investment opportunity—it’s a paradigm shift toward financial sovereignty. While the technology continues to mature and face adoption challenges, its fundamental properties as a store of value remain unchanged.

The journey isn’t always smooth, as my own experience demonstrates. But for those willing to educate themselves and approach it with patience and proper risk management, Bitcoin offers unprecedented opportunities for wealth preservation and growth.

As we move forward, the question isn’t whether Bitcoin will become mainstream, but rather how quickly we can educate ourselves and prepare for this financial revolution. The early adopters who understand its true nature as digital gold will be best positioned for the future.

Final advice: Start small, study continuously, and never invest more than you can afford to lose. The future of money is being written today, and Bitcoin is holding the pen.