5 Reasons to Focus on Bitcoin Only
Swan Bitcoin
On a mission to inspire and educate 10 million new Bitcoiners. Services for HNWI, companies and financial advisors.
Unlike other cryptocurrencies, over the long term, Bitcoin has provided exceptional returns, peace of?mind, and security for HODLers, their families, businesses, and employees.
Like other cryptocurrencies, Bitcoin is?highly?volatile. Unlike other cryptocurrencies, Bitcoin has?provided exceptional returns, peace of?mind, and security for hodlers, their families, businesses, and employees over the long term, especially for those dollar cost averaging.?
“Crypto, ” on?the other hand, brings more volatility and a?much greater likelihood of?losses?— even for experienced traders.
There’s no?need to?take on?these added risks and costs of?“crypto” and “crypto exchanges” since you can just buy Bitcoin from a?Bitcoin-only company like?Swan.
Here are five reasons to?support Bitcoin?only.
1.?Bitcoin ≠ Crypto
There are currently over 2 million cryptocurrencies on?the market.
Thousands more have died, leaving investors with?nothing. Some claim to?be?pseudo-equity, governance tokens, yield-bearing tokens, gas for smart contracts, and more.
These coins are DEPENDENT on?a?leader or?foundation to?build, maintain, and promote the coins.
Ethereum DAO Hack (2016)
The DAO (Decentralized Autonomous Organization) was a?complex smart contract on?the Ethereum platform that raised significant Ether through a?token sale.
However, a?vulnerability in?its code was exploited by?a?hacker, leading to?the theft of?about $60 million worth of?Ether.
To?address this, the Ethereum community decided to?execute a?hard fork of?its blockchain.
This hard fork effectively reversed the transactions that led to?the theft, returning the stolen funds to?their original owners.
It’s important to?note that this was a?controversial decision, as?it?went against the principle of?immutability that many in?the blockchain community hold dear.
As?a?result of?this hard fork, Ethereum Classic (ETC) was created, a?continuation of?the original Ethereum blockchain where the transactions of?the DAO hack were not?reversed.
No?team of?developers can do?this on?the Bitcoin blockchain.
There is?only one fixed supply digital commodity, and that is?Bitcoin. Unlike other cryptocurrencies, Bitcoin is?INDEPENDENT and fully decentralized, the monetary policy can be?trusted, and it?has no?counterparty risk, CEO, or?foundation.
In?a?world where fiat money is?rapidly devaluing, Bitcoin is?a?unique long-term savings vehicle that deserves a?spot on?every balance?sheet.
In October 2023, Fidelity released a follow-up report titled: Bitcoin First Revisited: about why investors need to consider Bitcoin separately from other digital assets. In it, they double down on why Bitcoin is unique from all other digital assets and belongs in its own category for many of the same reasons discussed in this article.
2. Bitcoin Offers Better Risk-adjusted Returns
History shows that cryptocurrencies are, on?the whole, terrible investments. While some coins have a?wild run-up when they initially get attention, the hype is?short-lived, and most fade away.
As?this analysis?shows, they rarely regain their previous all-time high in?BTC terms.
On?the other hand,?Bitcoin has the best brand, is?the longest lasting, most secure, and performs best in?the long?term. It?is?less volatile than other tokens, most losing 95% or?more of?their value against?Bitcoin. Looking at?risk-adjusted returns, Bitcoin is?the clear winner.?
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3.?Aligned Incentives For the Win?
The business model for cryptocurrency exchanges is?to?lure customer funds onto their platform and then either (1) get users to?trade between coins or?(2) lend customer funds to?(risky) counterparties to?earn interest.?
Unfortunately, this incentivizes companies like Coinbase and Celsius to?act against the interests of?their?customers. How??
Why patronize a?company that doesn’t have your best interests in?mind?
Bitcoin-only companies like Swan are aligned with their customers’ success. Our business model is?simple: we?only get paid when you buy (or?sell) Bitcoin. We?have no?incentive to?convince our users to?trade into risky tokens, and we?have no?incentive to?custody your coins.?
In?fact, we?promote self-custody and make it?as?easy as?possible for our users by?offering FREE and AUTOMATED Bitcoin withdrawals.?
4.?Focusing on?Only Bitcoin Provides a?Better Experience For Clients
Crypto exchanges must incur massive overhead to?support hundreds or?thousands of?often insecure, risky tokens.
To?compensate for the higher cost structure, crypto exchanges charge higher fees and monetize their users with predatory methods like promoting speculative tokens and offering extremely risky “yield” products…
Not to?mention notoriously awful customer support.
“If?you try to?please everyone, you’ll end up?pleasing no?one.”
Focusing only on?Bitcoin provides a?competitive?advantage. Swan can offer lower fees than Coinbase due to?reduced?overhead. By?having a?singular focus, the entire company is?aligned on?the same mission, which increases employee retention and productivity.
Focusing enables us?to?hire staff that specializes in?Bitcoin specifically. Our customers LOVE this. Our team gets on?calls with our clients, something the Coinbases of?the world could never do.
5. Bitcoin is?the Only Cryptocurrency With Regulatory Clarity
Cryptocurrencies and crypto exchanges have regulatory uncertainty hanging over?them. In?fact,?the SEC is?investigating Coinbase?for listing potentially unregistered securities.
SEC Chairman Gary Gensler has publicly stated that Bitcoin is?the only cryptocurrency with commodity status (which implies other tokens are unregistered securities).?
** UPDATE: It?was?reported on?July 31st, ahead of?initiating legal proceedings against the exchange, the SEC instructed Coinbase to?halt trading in?all cryptocurrencies except for?Bitcoin.
As?the regulatory landscape shifts, it’s wise for investors to?consider safeguarding their holdings by?moving them from Coinbase into secure cold storage.
While free-market competition is?preferable, this reality poses a?major risk for crypto exchanges and most tokens.?
Meanwhile, Bitcoin has regulatory clarity as?a?commodity rather than a?security. Bitcoin-only exchanges can confidently sell BTC to?their clients without the risk of?a?regulatory?crackdown.
In?the end, the old “KISS: Keep It?Simple Stupid” adage?applies.
Avoid expensive and risky strategies that are likely to?lose?money. Employ a?superior strategy, simply buying Bitcoin from Bitcoin-only companies.?
Senior Product Owner at New York Life Investments | UX/UI, design, product owner | Open to US-based roles (remote work preferred)
9 个月One of the biggest hurdles for people getting into Bitcoin is the “unlearning” of what we’ve been taught money is. We’ve been told that the money can only come from the government. We’ve been told by experts that a fixed supply currency could never work. We’ve been told by Nobel laureate economists and billion investors that Bitcoin is “rat-poison squared.” People need to ask “Why?” about all of these and rather quickly, all their arguments fall apart. We all love NGU, but one of the most convincing arguments I’ve used to orange-pill people is to show them the value of real-life items in BTC and USD.
Financial Strategist serving business owners & families in ? Retirement Income Planning ? Asset Protection through a Family Office structure.
9 个月Good info. BTC is here to stay