Long-Term Thinking in a Short-Term World: How Bitcoin Encourages Financial Responsibility
Are you tired of feeling like you're stuck in a cycle of debt and short-term thinking? You may be aware of one and not the other. Do you find yourself constantly stressed about your financial situation? You're not alone.
The current financial system is designed to encourage spending and debt, but there is potentially a way to break free from this cycle.
In this blog, we'll explore how Bitcoin can help you save for the future, encourage financial responsibility, and offer the potential for financial freedom. But first, watch this small extract from Rhys below:
This clip was taken from Episode 2 of our brand new podcast: 123 & Chill. Head over to our YouTube channel if you would like to watch the entire episode!
Don't be Too Hard on Yourself
Firstly, let's address the fact that the current system is not entirely our fault. We make this clear in Block 1 of our free course by stating: don't be too hard on yourself.
Companies want us to spend our money on their products and services, while banks make money off of the interest on loans and credit cards. It's easy to fall into the trap of instant gratification, but we shouldn't be too hard on ourselves for doing so.
However, we do have the power to change our financial situation. This is where Bitcoin comes in.
Bitcoin as an Alternative
Bitcoin is a decentralised digital currency and technology that operates on a peer-to-peer network, meaning that there is no central authority controlling it. There are rules and no rulers.
Additionally, Bitcoin is a finite resource, with only 21 million Bitcoin in existence, which makes it a great store of value over a prolonged period of time.
Crucially, one of the biggest advantages of Bitcoin is that it encourages long-term thinking. With Bitcoin, you can't simply go into debt and expect to pay it off later. Instead, you have to work for your Bitcoin, which encourages saving and planning for the future.
This can be especially beneficial for people who struggle with the urges and temptations of the commercialised, TV, Advertised world we live in. It helps prevent instant gratification with the impulse purchases and replaces short-term thinking with long-term thinking.
Privacy and Security
Another advantage of Bitcoin is that it offers a degree of privacy and security that traditional financial systems don't. Transactions are recorded on a public ledger, but personal information is not linked to those transactions.
This means that you don't have to worry about your personal information or precious Bitcoin being taken in a hack (so long as your Bitcoin is protected in cold storage).
With traditional financial systems, your personal information is often required to complete transactions, and this information can be vulnerable to hacks. With Bitcoin, there is no need to reveal person information during a transaction, which makes it a safer and more secure way to transfer funds.
Moreover, Bitcoin also offers lower transaction fees compared to traditional financial systems. This is because Bitcoin transactions are processed by a decentralised network of computers, and there is no need for a middleman like a bank to authorise the transaction.
This is hugely beneficial for smaller-nations, including the recent Bitcoin-adopters, El Salvador. Citizens in countries such as El Salvador make regular international payments. Unlike banks that charge high fees, Bitcoin's Lightning Network makes it almost instantaneous and for fractions of the cost.
Bitcoin is Freedom
Finally, Bitcoin offers the potential for financial freedom. With Bitcoin, you can send and receive money anywhere in the world without the need and, especially, the permission of a middleman such as a bank. This can be especially beneficial for people living in countries with unstable currencies or limited access to financial services.
In many countries, people are limited in their ability to access traditional financial services due to the high fees already mentioned, but also because of strict regulations or a lack of infrastructure.
This can make it difficult for people to participate in the wider economy, send and receive money from family members or friends, or invest in businesses and assets such as Bitcoin. The result of this is that over half of the world remain unbanked.
Bitcoin offers a way to bypass these limitations and access financial services without the need of approval from a bank. With Bitcoin, you can send and receive money directly to anyone with a Bitcoin wallet, regardless of where they are in the world. There are no limits of the amount of money that can be sent or received, and transactions are processed quickly and securely.
To sum up, you don't need to have a 30-minute call with the bank explaining what you're doing with your own money, who you're transacting with and why you're sending it in the first place. It's easy to confuse consumer protection with control.
In conclusion, the current system of debt and instant gratification is not entirely our fault, but we have the power to break free from this cycle. Bitcoin encourages long-term thinking, offers privacy and security in transactions, and offers the potential for financial freedom. By adopting new technologies like Bitcoin, we can change our financial situation and plan for a better future.
Thanks for reading! Be sure to check out one of our other related blogs: Bitcoin is a marathon, not a sprint.