Why Bitcoin?

Bitcoin represents a fundamental shift in how we think about money, value transfer, and financial sovereignty. Understanding why Bitcoin matters is the first step in your journey.

What is Bitcoin?

Bitcoin is the world's first decentralised digital currency, created in 2009 by an anonymous person or group known as Satoshi Nakamoto. Unlike traditional currencies controlled by central banks, Bitcoin operates on a peer-to-peer network secured by cryptography and maintained by thousands of computers worldwide.

The Key Principles

1. Fixed Supply & Scarcity

Bitcoin has a maximum supply of 21 million coins—no more can ever be created. This hard cap is enforced by the Bitcoin protocol itself, making Bitcoin the hardest money ever created. Every four years, in an event called the "halving," the rate at which new Bitcoin is created is cut in half. The most recent halving occurred in April 2024, reducing the block reward from 6.25 BTC to 3.125 BTC.

This scarcity model stands in stark contrast to fiat currencies, which can be printed in unlimited quantities by central banks. The fixed supply makes Bitcoin an attractive hedge against inflation and currency debasement.

2. Decentralisation

No single entity controls Bitcoin. The network is maintained by thousands of nodes (computers running Bitcoin software) distributed globally. This makes Bitcoin resistant to censorship, seizure, and manipulation. Transactions are validated by miners who compete to solve complex mathematical puzzles, securing the network through proof-of-work.

3. Transparency & Security

Every Bitcoin transaction is recorded on the blockchain—a public, immutable ledger that anyone can verify. This transparency combined with cryptographic security makes Bitcoin one of the most secure financial networks ever created. Bitcoin has never been hacked, and its security only increases as more miners join the network.

4. Self-Custody

With Bitcoin, you can be your own bank. You control your private keys, which means you have complete ownership and control over your assets. No one can freeze your account, reverse your transactions, or deny you access to your funds.

Why Bitcoin Matters Today

Institutional Adoption

2024 marked a watershed moment for Bitcoin with the approval of spot Bitcoin ETFs in the United States. Managed by industry giants like BlackRock, Fidelity, and others, these ETFs have brought billions in institutional capital into Bitcoin. This institutional endorsement signals Bitcoin's maturation from a speculative asset to a legitimate component of diversified investment portfolios.

Major corporations including MicroStrategy, Tesla, and Square hold Bitcoin on their balance sheets. Even nation-states like El Salvador have adopted Bitcoin as legal tender, recognising its potential as a hedge against inflation and currency devaluation.

Hedge Against Inflation

With central banks around the world pursuing expansionary monetary policies, concerns about inflation and currency debasement have grown. Bitcoin's fixed supply and decentralised nature make it an attractive alternative to traditional fiat currencies, earning it the nickname "digital gold."

Financial Inclusion

Bitcoin provides access to financial services for the unbanked and underbanked. With just a smartphone and internet connection, anyone can send, receive, and store value globally—no bank account required.

Bitcoin in Australia

Australia has emerged as a forward-thinking jurisdiction for Bitcoin and cryptocurrency. The Australian Taxation Office (ATO) provides clear guidelines on crypto taxation, treating Bitcoin as property subject to capital gains tax. Australian exchanges like Swyftx and international platforms like Gemini serve the growing local market.

In June 2024, Australia listed its first spot Bitcoin ETF on the Australian Securities Exchange, providing regulated access to Bitcoin for Australian investors through traditional brokerage accounts.

The Path Forward

Bitcoin has evolved from an obscure experiment to a $1+ trillion asset class. With each passing halving cycle, Bitcoin's scarcity increases, and its role as a global monetary network strengthens. The 2024 halving, combined with institutional adoption through ETFs, positions Bitcoin for continued growth and maturation.

Whether you view Bitcoin as digital gold, a hedge against inflation, or the foundation of a new financial system, understanding its fundamentals is crucial for anyone looking to participate in the digital asset revolution.