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A Quick Guide To Bitcoin

My Thoughts on Bitcoin

What is Bitcoin?
Before diving into my thoughts on Bitcoin, let me give a brief introduction to what it is. Bitcoin is a digital currency, also called cryptocurrency that allows for peer-to-peer transactions without the need for intermediaries. It operates on a decentralised network and has a fixed supply, making it a hedge against inflation. Additionally, it’s underpinned by blockchain technology, which offers transparency and immutability to transactions.

Bitcoin, the Digital Gold?
In my opinion, Bitcoin has a lot in common with traditional safe-haven assets like gold. It’s scarce, has a fixed supply and is a great way to protect your wealth from inflation. But what sets it apart is that it’s digital and decentralised, giving individuals more control over their money. It’s like having a little piece of the future in your pocket and I truly believe it’s here to stay.

Volatility, the Growing Pains of Bitcoin?
Now, I know some of you might be put off by the volatility of Bitcoin’s price. But think of it this way, when a baby takes its first steps, it’s wobbly and uncertain. But as it grows, it becomes more stable and confident. The same goes for Bitcoin, as more people start to adopt it, the volatility will decrease. And it’s important to understand that the Bitcoin protocol has a four-year cycle based on game theory incentive structures that are used to execute fiat currency, which can also affect the volatility of the currency.

Can Bitcoin Solve Monetary Woes and Become Mainstream?
I think Bitcoin has the potential to address some of the issues we are facing today in the monetary system, such as inflation and the centralisation of power. More and more financial institutions are recognising this potential and are starting to adopt Bitcoin in various forms. Like, Fidelity, which has launched a Bitcoin fund for its clients, and PayPal, now allow its users to buy, hold, and sell Bitcoin. These are just a few examples, but they show that mainstream adoption of Bitcoin is on the rise.

Where to buy Bitcoin?

I got mine from…
• Binance USDT → BTC
• CoinRise HKD (cash) → USDT
• One Satoshi HKD (cash) → USDT

I can’t afford 1 Bitcoin

You don’t have to be a millionaire to invest in Bitcoin! In fact, you don’t even have to buy a whole Bitcoin. You can buy a tiny fraction of it, called a Satoshi. It’s actually a great way to start small and invest in whatever you’re comfortable with. You can buy HKD100 worth of it (equals 0.00025 Bitcoin as of writing 2020-02-19) and still be a proud owner of Bitcoin. As the famous quote goes “The best time to buy Bitcoin was yesterday, the second best time is now.” Happy investing!

Where do I store my Bitcoin?

If you don’t own your private key, you don’t own your Bitcoin. DO NOT store your Bitcoin on an exchange. Here is a complete list of crypto exchange hacks. So please do not leave it in the custody of a third party.

Cold Wallets (offline)
• Ledger
• Trezor
• Other seed storage devices

• Ballet: a non-electronic physical crypto wallet made out of stainless steel.
You can get them from Genesis Block.
A great gift IMO, see my Give Bitcoin as a Gift post

Hot Wallets (online)
• Blockchain
• Coinbase Wallet
• Exodus


• Bitcoin White Paper
• Glassnode Market Indicators
• Cryptowatch Live price charts
• CryptoQuant Bitcoin exchange flows
• Crypto Exchanges fees comparison
• The Bitcoin Standard by Saifedean Ammous
(Buy on Amazon, Bookdepository, Eslite)
• List of Bitcoin Treasuries in publicly traded companies
• MVRV Z-Score to assess when BTC is overvalued or undervalued
• Bitcoin ROI vs other assets
• Bitcoin Distribution List
• Bitcoin Barometer
• CoinLobster to see the combined order book