Bitcoin Ends Investment Apartheid

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Hey Jessinvestors

The invention of Bitcoin has been an absolute revelation in financial technology and we’ve yet to see it realize it’s potential.

Yes I know this bull run has got everyone super excited about the posibiltirs 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 fan fair is because it started at the retail level. It begun 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 comapnies or become thought leaders in the crypto space.

The amazing thing about Bitcoin and a anyone could get in at anytime at any size they wanted! If it was $10 or $100 you could get in at anytime during the last 12 years if you had the will to do it, no one was going to stop you.

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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 don’t do and I don’t blame them they both annoying having lived through both of it.

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, bail outs 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 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 their 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 payouts 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 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 a chance to get in first and regardless of regulation you can still get in today and in the future.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

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13 comments
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If you want to know more about it read a book I ain’t got time to relive that drama.

Haha, I appreciate that you mentioned books instead of Google.

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Lol google doesn't give you content based on who is most accurate or who provides the best content only what people search for and who has budget to pay SEO's lol never trust google

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This is so true people from different economical class get different treatment.
A farmer will get summoned in court and can loose the field for not repaying the loan but an industrialist will declare himself a bankrupt and govt will bail them out.
Such a imbalanced system

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Exactly, also when you go to make a loan you paying a certain rate, but a company can borrow at near 0%. It really is a system based on nepotism and not on where the market actually values debt creation

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The scary thing about Bitcoin back in 2011-2012 when a friend first mentioned it to me was that I was certain it was going to be banned. I'm still surprised the authorities allowed it because it takes a lot of power away from them.

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Man you were in really early I only got in 2015/16 and even then it was risky as hell! I think they ignored it because the market cap was so small and they didn’t think we would all gravitate to it the way we have, no one could have seen this coming

Also government is always slow to react and those that have banned it only seemed to push up the price!

I do think now we at a point where too many people and entities own it to ban it now, not that they won’t try in some countries I’m sure they will

What I’m hoping to see is smaller countries using this as a spring board to attract the best and brightest and rebuild their economies with Bitcoin in mind and not trying to fight it but leverage it

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Yeah, 2015 -2017 was probably the riskiest period. It had gotten mainstream attention, but hadn't exploded to what it is today where there would be serious ramifications if they were to suddenly ban it.

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I don't think the authorities are allowing it. I've seen news of countries trying to ban and they still are. The ones who aren't are looking at controlling the environment via CBDC (Central banks digital currencies), which taskmaster4450 recently posted about. You can check it out here https://leofinance.io/@taskmaster4450/cbdcs-will-not-help-inequality.

If they manage to implement CBDCs it gives them ultimate authority and control, so it would make more sense to go that route.

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thanks or the movie suggestion I will watch it to get more into the financial world, at least in an easier way to understand.

And yes sometimes the people will only get the crumbs, but the big guys felt like they are losing, they well seek help from the authority, just like how the Gamestock drama isn't it?

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Probably they will, and most likely they'll get some help, but there is a limit; unlike what they can do with Gamestop they can only limit access. They can't block you off with Bitcoin. We can see this play out in real time with Nigeria, all it did was have BTC trade a higher premium in their country and people still want it

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The reason I think Bitcoin has such fan fair is because it started at the retail level

The above statements sums up the entire write up for me, a take away kind of statement. We still have most cryptos kicking off on retail level, it is each one's responsibility to identify and find means of accumulating before the big boys get in on it.

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I think so too, and it levels the playing field, I see institutions and VCs funding blockchain projects but it doesn't mean that retail projects can't compete since people can now see who is running and funding projects and can choose who they want to support

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