The invention of Bitcoin has been an absolute revelation in financial technology and we’ve yet to see it realize its potential.
Yes, I know this bull run has got everyone super excited about the possibilities of becoming insanely rich overnight.
The FOMO is real and so is the foaming at the mouth of traders who got in early. I get it and you should be excited and cheering and you should enjoy your gains, by all means, don’t let me tell you what to do with your money.
The reason I think Bitcoin has such a fan fair is that it started at the retail level. It began with a bunch of nerds and slowly the early adopters and then the first serious investors and speculators.
Many of the early investors became fabulously wealthy and started companies or become thought leaders in the crypto space.
The amazing thing about Bitcoin and an anyone could get in at any time at any size they wanted! If it was $10 or $100 you could get in at any time during the last 12 years if you had the will to do it, no one was going to stop you.
What is aparthied?
Apartheid along with the Vuvuzela is probably one of the popular things to speak about when mentioning South Africa. Something most non-South Africans doesn’t do and I don’t blame them they both annoying having lived through both of them.
For those who don’t know Apartheid was a system of institutionalised racial segregation that existed in South Africa and South-West Africa from 1948 until the early 1990s where they kept people of different races apart and each got different levels of preferential treatment.
If you want to know more about it read a book I ain’t got time to relive that drama.
Apartheid still exists today but it’s not exclusive to South Africa, we have financial apartheid. Where certain classes of people get special access to certain interest rates, investment opportunities, bailouts and more.
This helps maintain the current power structures and makes upward mobility extremely hard for society but more importantly it removes downward mobility where if you make shit financial decisions you should go bankrupt not be made whole by the government.
When Bitcoins Genesis block was launched it stated “Chancellor on brink of the second bailout” which indicates its entire ideal was to end this financial oppression.
How does investment aparthied work?
I think a great example is the 2008 housing market crash that took down the entire global economy. In fact, it was the moment the economy died, Quantitive easing became the norm and the inspiration for Bitcoin was born.
When the housing market bubble imploded there were a few funds who picked it up early and had credit default swaps created!
These were insurance contracts on CDOs (collateralized debt obligations and MBS (Mortgage-backed securities) if these securities imploded which they did the credit default swap would pay out 10, 20, 50 even 100 to 1 payout depending on the tranche you shorted.
If you want a simple explaination fo the story I highly suggest you watch the movie “The Big Short”
When the housing market collapsed due to teaser rates expiring in 07/08 these credit default swaps paid out and bankrupted banks. Certain hedge funds had contracts and took payouts while others sold them on to banks in a secondary market all making millions if not billions in the process.
If you and I wanted to get in on the action the smallest fund you get into had a $100k buy-in and even if you could afford it If the $100k was too high a percentage of your overall net worth/portfolio funds would not take it on.
So you would be forced to miss out on gains of up to 100 to 1. So if you had the 100k you could have made 1 million to 100 million depending on the fund you invested in.
Due to government regulation funds couldn’t accept smaller bids creating the financial apartheid they claim to be working against.
The best opportunities to invest have always been left to the big guys and the rest get to crumbs even if they have the capital.
Bitcoin is the first time retail got a chance to get in first and regardless of regulation you can still get in today and in the future.