Written By 1Bitcoin.ca, August 3rd, 2022

We often talk about Bitcoin and its many innovations. However, it is also important to understand the distinction between Bitcoin ‘the network’ and bitcoin ‘the asset’. Together these two pieces seamlessly work in harmony to create the powerhouse that Bitcoin has become.

The Asset

When you think about Bitcoin, this is probably the first thing that pops into your head - the asset. It is the first truly scarce asset in the world, offering absolute digital scarcity. A verifiable, open, and immutable ledger tracking all Bitcoin in existence. Bitcoin is the only asset that is truly impervious to outside influence. No third party can censor your payment but more importantly, no one can inflate or dilute the supply. An asset that allows you to personally verify every aspect - from the supply schedule and maximum supply, to the rules that apply to everyone that uses Bitcoin.

You are able to independently verify what percentage you own of all Bitcoin in existence. Imagine if you could know the total amount of gold that there is around the world, and how much your holdings make up. With cash, this is impossible as well due to the amount of fractional reserve banking and money printing that occurs.

Bitcoin is a true bearer asset - meaning you can have true ownership of it without relying on a third party. If you control the private keys that can move the Bitcoin, no one else can touch it. This creates the opportunity to have true final settlement, as once those Bitcoins leave your hands, you can not recall them back - there is no support number to reach out to.

The Network

This is the real innovation that allows the asset to operate on top of it. The ultimate payment rail system. It is an engineering marvel that will address and upend a multibillion remittance industry. It is a monetary network that ensures all parties operate with rules, but no rulers. It offers uncensorable, real time payments. A system that offers quick and final settlement with no ability to reverse. The technological improvements from the current monetary system is like comparing Canada Post to email. A fundamentally better system, a once in a lifetime generational leap.

Many different applications are being built on top of this network as well. Even if you don’t want to hold Bitcoin, you can use it to send money and then cash out in the currency of your choice with ease. Bitcoin is merely a technology that will help facilitate transactions seamlessly. A global monetary network that operates 24/7, 365. It never has downtime, even on 3am on Christmas Day, Bitcoin is there for you. The term banking hours will be obsoleted in the next decade.

The Result

These two sides of Bitcoin create a revolution that will change industries for decades to come. From Bitcoin’s asset properties revolutionizing lending and collateral, to its network capabilities that will revolutionize communications and globalization. A majority of the ways Bitcoin will affect our lives is not even on the radar yet - just like no one could predict YouTube when the internet was finding its footing in the 1990’s.

We at 1Bitcoin are always available if you have any questions regarding this amazing innovation, and are just an email away. Feel free to get in touch with one of our Bitcoin brokers at any time.