Not your keys, not your coins
Bitcoin is undoubtedly the most remarkable technological discovery of this century so far. Its full implications are only beginning to play out before our eyes.
One of Bitcoin’s most important innovations is that it is an asset that you can actually own.
By this I mean that it can be held in significant amounts in one’s own custody, remote from exploitative taxation (or inflation) and from counterparty risk.
- Cash? You can own it, but the government is going to deplete its purchasing power through inflation.
- Equities and bonds? They are held bankruptcy remote but not without counterparty risk. And any returns are going to be subject to increasing capital gains taxation.
- Real Estate? The government will take away your title unless you pay increasingly exploitative taxes.
- Gold? Like Bitcoin, it can be held in self-custody in reasonable amounts but transferring it is going to be difficult.
The property of self-custody in itself, gives Bitcoin tremendous value in a world where governments are increasingly overreaching.
However, self-custody comes with great responsibility. It means actually owning the keys to one’s Bitcoin, not a Bitcoin ETF.
If you want to truly contribute to the Bitcoin network and participate in its wealth generation over a long period, you need to familiarize yourself with the ins and outs of Bitcoin self-custody.
