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A hypothetical scenario for the future of Bitcoin?

The current debt paradigm and monetary policies for managing our fiat currencies, with low-interest rate environments and debt monetization by central banks, are unsustainable.

The negative effects on people’s purchase power further erode the trust in fiat money. All fiat money based on debt creation and exponential compounding interest will at the end return to their fair value: zero.

We have a global debt time bomb in a period of trade wars, currency devaluations, and hyperinflation.

The people in EM countries like Venezuela, South Africa, Argentina, Iran are suffering from hyperinflation.

Why would the demise of fiat money lead to an increased demand for Bitcoin?

Countries suffering from hyperinflation will implement capital controls. For people on the ground, it will be difficult to get hold of US Dollars, let alone gold. Moreover gold is impractical, bulky, too expensive and difficult to use for day to day transactions. In this period of our history with the internet and cell phones is Bitcoin superior to gold. Bitcoin is immune to capital controls, it functions outside the current financial system. Everybody can participate in this network and transact with each other with help of a cellphone. Transactions are not censurable. Bitcoin is sovereign money with all the properties of hard money. A currency crisis shortens the learning curve for people to understand this and adopt Bitcoin.

In this scenario the Bitcoin blockchain eventually turns into settlement layer and global unit of account — we will get a Bitcoin Standard. The bitcoins will not function directly as a global currency, no the bitcoins will be able to play this role through the second layer solutions on top of the Bitcoin blockchain: the Lightning Network. Everybody will be able to use Bitcoin at very low fees and lightning fast. This process will gradually lead to hyperbitcoinization.

The final standoff will be between the US Dollar, the Lion King, and Bitcoin, the Honey Badger…. or will a final fight to the dead be avoided by the FED? Might the FED not acquire bitcoins and use them in order to make a stance against China’s financial and economic power over the US?

The Chinese and the Russians it seems are betting on gold. Backing a currency with gold will not be enough in these times. Bitcoin is the digital gold of our age and all clever governments and financial institutions will understand this fact and hedge themselves by acquiring silently Bitcoin. Will the Central Banks start a Bitcoin gold rush? Will they not only indirectly but also directly be responsible for causing hyperbitcoinization in order to maintain their geo-political ambitions?

Indeed, Bitcoin is a digital Pandora’s box in the online landscape of unsustainable digital debts. The lid has been opened, there is no turning back. It will enable a financial paradigm shift which in the end will be better for mankind. Everybody on the globe will be able to learn and claim their own financial sovereignty. We will be able to create better, fair and just decentralized, permissionless financial and economic systems based on Bitcoin and new blockchain technologies without the need for third parties. Thanks to the invention of Bitcoin a new period of human enlightenment is possible with a new high-tech industrial revolution as its consequence. But first, we have to reform and unwind the old debt-ridden financial system that is on the verge to implode. This will not be without pain. Prepare accordingly.

Learn more about Bitcoin: online Bitcoin guide (Dutch).

This article is not investment advice but an appeal to do your own research on money, Bitcoin and our current fiat debt paradigm.

Buying Bitcoin in the Netherlands 

buying bitcoin in the netherlandsThe Netherlands is a progressive country with regards to innovation and the adaption of new technologies. The adoption of Bitcoin has been relatively slow, but the Dutch really started to discover the crypto space in 2017.The interest for cryptocurrencies has risen substantially in the last quarter of 2017. According to a survey of the Kantar TNS in October 2017 an estimation of 135.000 people had invested in cryptocurrencies. The research was based on surveying 35.387 households. Although Bitcoin is dominating in the crypto portfolio, there was also interest in buying Ether, Ripple, Litecoin and the digital guilder! The Dutch started very carefully buying for small amounts, only 15 % of the polled bought for more than 1000. The relatively low invested amounts are not strange, most buyers of crypto’s (56 %) are under 34 years old. With enormous price increase of the complete crypto space and consequently the media attention more and more people in the Netherlands started to buy crypto’s.

Recent new research carried out by Cryptovaluta Monitor estimates now that there are more than 865,00 Dutch crypto holders (6,7%) who own one or more cryptocurrencies. The findings were based on a survey of more than 7,000 Dutch crypto holders during the week of January 16 and over 5,000 individuals during the week of February 12, 2018. What it is interesting to note is that the enormous market correction in late december did not shake out the Dutch crypto investors. An estimated 75 % of all the crypto holders are buying it as a long term investment. The market participation in the Netherlands remains constant. This is because the Dutch are not investing a lot of money in cryptocurrencies  and do not go into debt to speculate on huge short term gains.

How to buy bitcoins in the Netherlands?

The journey to discover the crypto space was also made possible thanks to the many Dutch exchanges the customers could choose from. In the Netherlands some innovative Bitcoin exchanges like Bitonic opened their doors in 2012. Buying Bitcoins was pretty difficult in 2012. Bitonic made it possible for the Dutch to buy bitcoins with the Dutch payment system iDeal. This payment method allows customers to buy on the Internet using direct online transfers from their bank account. It was a game changer and soon new exchanges emerged. In 2013 BTCdirect, Anycoin Direct and Litebit opened their doors. Now the Dutch can choose from 10 different Dutch bitcoin exchanges and buy easily and secure bitcoin with iDeal. Besides from Bitonic, Anycoin Direct, Litebit and BTCdirect they can go to Satos, Bitmymoney, Happycoins, Bitrush, Bitkassa and Bivavo. The Dutch are lucky and it explains as well how the enormous growth in bitcoin holders was made possible.

The Dutch are also spoiled with great localized information sites on cryptocurrencies. One of the most in depth cryptocurrency site, bestebank.org, started as a blog in 2013 on alternative banking and critical articles on the financial system. The site embarked on the publication of in depth articles on the working of Bitcoin, wallets, cryptocurrencies and blockchain technologie in general as possible alternatives for the current global financial system. The article or guide on buying bitcoins is since 2013 one on of the most in depth you can find in the Netherlands. There is also a general overview page on all Bitcoin topics that you could consider as a free online Bitcoin course.

Localized information on Bitcoin in particular and cryptocurrencies in general together with localized easy to use bitcoin exchanges are important contributing factors for increasing consumer adoption and the future success of the crypto space. It will help to spur innovation and experimentation with the new technologies in the country and lay the fertile foundation for new startups. The Netherlands is has made a great start! The interest for blockchain applications and tokens has increased although the local ICO’s space has been halted by regulatory uncertainty. The Dutch Minister has been warning against investing in cryptocurrency for some time. The Dutch regulator for financial markets AFM and Dutch central bank DNB also warn that investing in cryptocurrencies is very risky. But despite these warnings, the number of Dutch doing so shows no significant decline.

 

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Digital Bitbox is a minimalist bitcoin hardware wallet packed with security and privacy. It is according to us one of the best or even the best hardware bitcoins wallet. Safely hold and spend your coins with peace of mind. It works as a plug-and-play wallet that combines the highest security of cold storage with the convenience of software wallets. For you, it gives simplicity and peace of mind.

Unique advantages of the Digital Bitbox:

  • Offline, anytime backup and recovery with a micro SD card.
  • Native software client avoids security risks of browser-based clients.
  • Plausible deniability with hidden wallets and backups.
  • Tor and Tails OS compatible to protect your privacy.
  • Private keys kept on a high-security chip that prevents physical extraction (50 year lifespan).
  • Portable, extremely durable case filled with epoxy and packed with security.
  • Subtle design avoids unwanted attention.
  • Multisig out-of-the-box (optional to use).
  • Smart verification and second-factor authentication mobile app (optional to use).
  • Fully open source.
  • Swiss ideals - quality, privacy, no backdoors.

best hardware bitcoin wallet

OpenDime is the 1st Bitcoin Bearer Bond or just call it a "Bitcoin Stick"
Opendime is a small USB stick that allows you to spend Bitcoin like a dollar bill. Pass it along multiple times. Connect to any USB to check balance. Unseal anytime to spend online. Trust no one.

BASED ON PRIVATE KEYS

Each Opendime holds one private key. It publishes the public key (payment address) to anyone and never reveals the key until "unsealed".

PIGGY-BANK ECONOMICS !?

Yes. It's like a piggy-bank. You must destroy it to spend the funds. At first that seems expensive and wasteful, but it's a key part of our security model: you can trust a sealed Opendime, and it's obvious when it's been opened.

INSTANT AND OFF-CHAIN

Since we are putting private keys into a physical form you can trust, you can simply hand around Opendime units to move amounts around. There are no pre-defined Bitcoin amounts with Opendime either. Store as much or as little as needed.

 

The requirements for the best Bitcoin wallet?

This article discusses a checklist or requirement list for the best bitcoin wallet. For the readers who do not have a lot of time to read, we start with a short summary:

digital bitbox smallThe best Bitcoin wallet should be an easy to use plug-and-play wallet for everyone. It should combine the highest security of cold storage with the convenience of an online software wallet. The wallet should not have any possible third party risks concerning your private key. It should contain the private key on cold storage under your control. It should contain at least one secret hidden wallet. It should be a 100 % hacker, malware and theft proof Bitcoin wallet. Even if the wallet backup is stolen, the bitcoins ought be safe! Only a few hardware wallets in combination with a proper wallet seed backup security solution are recommended: Trezor, Ledger Nano S and the Digital Bitbox. The Digital Bitbox is a extremley secure Bitcoin hardware wallet developed in Switzerland. It meets all the requirements discussed below:

The requirement's list for the best bitcoin wallet:

  • In order to achieve this, is it extremely important that the private keys never touch your computer or the internet.Not even during the initial setup or backup. So we should look for a hardware wallet with an onboard microcontroller that generates a wallet (BIP32) using a high-quality hardware random number generator to create entropy.
  • Furthermore, there should be a more convenient and secure way to deal with the offline backup and recovery of a wallet. The best Bitcoin wallet should include an onboard slot for a micro SD card that allows offline backup and recoveries where there is no need to expose. The backup process of many wallets is vulnerable for rootkits and spyware. While typing and verifying your recovery wallet seed on a keyboard or displaying recovery information on a screen, you leave it susceptible to theft by key logging, screen captures, and cameras. With a micro SD card dealing with the secured storage of your wallet seed, you avoid these risks. Moreover, unlike other hardware wallets, you are able to backup your wallet at anytime and as often as you like. Switch between different wallets in a snap. This way multiple (cold storage) wallet backups can be saved to the same SD card - each filename should be time stamped to be unique. Also, the same wallet backup can be saved to multiple SD cards. As such creating multiple backups is easy to realize for large value wallets.
  • An important feature would be that the backup functionally should be equivalent to an encrypted wallet but better if done on the following way... Technically, the backup is a string of characters that is the wallet's seed. The seed in combination with the device password is used to derive the wallet's BIP32 extended master private key. Different from decrypting an encrypted wallet, the derivation purposely takes a lot of computational time, which greatly reduces the possibility to brute force attack the backup. This would create also peace of mind when a SD-card with some wallet backups would get stolen. The thief could not do anything with the backups without the correct password-- the device password cannot be forgotten, or else the wallet cannot be recreated! This feature would make the wallet theft proof.
  • The best hardware Bitcoin wallet should not require drivers by using a single-purpose microcontroller that connects to a computer as a plug-and-play USB device.
  • The best bitcoin wallet should have a minimalist design that keeps the code as simple as possible, making audits easier and reducing the number of attack vectors.
  • The best bitcoin wallet should use AES-256-CBC encrypted communication over USB that is immune to glitching and timing attacks.
  • The best bitcoin wallet should have a Two-factor authentication option to prevent man-in-the-middle (MITM) attacks.
  • The wallet should erase and reset after 15 failed attempts, eliminating brute force password attacks. If a reset happens by accident, the wallet can be recovered simply by reloading the wallet seed from the micro SD card.
  • Capacitive touch button confirmation for transaction. You should physically touch the device briefly to for example 'reject', and touch longer to 'accept' a transaction.
  • The best Bitcoin wallet only uses a native software client in order to avoid security risks of browser-based clients.
  • The best Bitcoin wallet should enable you to use Plausible deniability with hidden secret wallets and backups. This feature would also be very helpful in case of a violent robbery in which you would be forced to open the wallet. You would be able to keep your secret hidden wallet safe by opening a fake or other wallet you have active on the hardware device.
  • The hardware wallet should be Tor and Tails OS compatible to protect your privacy.
  • Again, the Private keys should be kept on a high-security chip that prevents physical extraction and should have a very long lifespan.
  • The hardware wallet should be portable with an extremely durable case filled with epoxy and packed with security.
  • It should have a subtle design to avoid unwanted attention.
  • It should support Multisig & FIDO U2F out-of-the-box!
  • It should be developped by a team with excellent Bitcoin expertise.

 

Conclusion based on comparative research:
best hardware bitcoin walletThis is a long list with very strict requirements for building the best bitcoin wallet. As you understand, the best Bitcoin wallet is always a hardware wallet that enables cold storage and the best malware and hacker proof protection. Our research only found 1 hardware bitcoin wallet that meets all of the above requirements and is also relatively cheap. This is the Digital Bitbox. The Digital Bitbox is the best bitcoin wallet available. Jonas Schnelli is the CEO of the company developing the Digital BitBox. He is a lendengary Bitcoin core developper with an incredible expertise in the intrinsic cryptografic complexities and security of the Bitcon netwerk.

Followed by the Keepkey and the Ledger Nano S.

These bitcoin hardware wallets will also be discussed and used during our workshops and in our workshop guide.

 

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Why should I buy bitcoins?

There are many reasons why you should buy bitcoins. Let's mention a few:

  • Bitcoins protect your financial privacy.
  • Bitcoins are scarce. Bitcoins have a very limited supply  (of max 21 million bitcoins) and cannot be digitally printed as debt like fiat currencies.
  • Bitcoins are digital assets and are your digital property without third-party risks as long as you have implemented proper security measures to protect your private key.
  • Bitcoins are transacted peer to peer and not server to a client. Bitcoins are a form of free money without the interference of controlling third parties like banks. Bitcoin works without banks, without governments, regulators and other third-party authorities. It works on a plain level field on basis of decentralization and equality. It enables a new separation of powers, that of money from the banks and governments.
  • Bitcoins are not based on debt, they are debt free and based on the principles of sound money.
  • Bitcoins are extremely secure based on the best cryptographic standards and the network is not hackable. It is impossible to control the Bitcoin network by third parties.

  • Bitcoin replicates the functions of gold and is in line with Austrian economic theories on inflation and deflation. Might the world end up in adopting a Bitcoin Standard as a better alternative to a gold standard?

  • Bitcoin although digital is the hardest money humans ever have invented. I know, it is hard to wrap your mind around it. It takes time and study. That's why you would like to learn more about Bitcoin?

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