WEBVTT Kind: captions Language: en 00:00:00.080 --> 00:00:02.720 Welcome to GoMining Academy.  My name is Jeremy Dreier,   00:00:02.720 --> 00:00:05.760 I am the chief business development officer  at GoMining and I’ve been involved in   00:00:05.760 --> 00:00:11.600 Bitcoin and Mining since 2017. I hope you enjoy these courses. 00:00:11.600 --> 00:00:15.760 What is Bitcoin? The origin of Bitcoin. Benefits and limitations. 00:00:15.760 --> 00:00:18.400 In Lesson 1, we talked about  why traditional money systems   00:00:18.400 --> 00:00:21.280 are struggling — and how Bitcoin  could help protect your savings.  00:00:21.280 --> 00:00:25.360 Now it’s time to understand how Bitcoin can offer  an alternative to traditional financial tools.  00:00:25.360 --> 00:00:29.040 Don’t worry — we’ll keep it simple. No  tech jargon, just clear ideas to show   00:00:29.040 --> 00:00:32.640 you what makes Bitcoin special, and  why it’s getting so much attention. 00:00:32.640 --> 00:00:36.800 By the end of this lesson, you will: Discover how Bitcoin can act as a tool   00:00:36.800 --> 00:00:40.720 for diversification, resilience,  and long-term financial planning.  00:00:40.720 --> 00:00:45.280 Compare the strengths and limitations of  Bitcoin versus traditional fiat currencies.  00:00:45.280 --> 00:00:48.880 Identify the core mindset and risk  management principles needed to use   00:00:48.880 --> 00:00:52.800 Bitcoin wisely. Let’s dive in! 00:00:52.800 --> 00:00:56.160 The Origins of Bitcoin and  How It Helps Diversify Savings  00:00:56.160 --> 00:01:01.280 Created in direct response to the 2008 global  financial meltdown, Bitcoin was born out of a   00:01:01.280 --> 00:01:06.640 desire to give individuals greater control over  their finances. Its pseudonymous creator, Satoshi   00:01:06.640 --> 00:01:12.320 Nakamoto, published the Bitcoin Whitepaper on  October 31, 2008 — just weeks after the collapse   00:01:12.320 --> 00:01:17.040 of Lehman Brothers. In it, Bitcoin was described  as “a purely peer-to-peer version of electronic   00:01:17.040 --> 00:01:21.760 cash,” enabling people to transact directly  without relying on financial institutions.  00:01:21.760 --> 00:01:25.920 This wasn't just a technical paper; it  was a revolutionary idea. In its essence,   00:01:25.920 --> 00:01:29.760 Bitcoin was built to address the systemic  weaknesses exposed by the crisis.  00:01:29.760 --> 00:01:34.160 Bitcoin fixes with weaknesses with: - Decentralization: It removes dependence   00:01:34.160 --> 00:01:36.960 on centralized banks and intermediaries that can   00:01:36.960 --> 00:01:41.440 fail or act against public interest. - Fixed Supply: With a maximum of 21   00:01:41.440 --> 00:01:44.800 million coins, Bitcoin is inherently  resistant to inflation and immune   00:01:44.800 --> 00:01:47.920 to the whims of money printers. - Transparency and Trustlessness:   00:01:47.920 --> 00:01:52.160 Anyone can verify transactions on the blockchain  without needing to trust a third party. 00:01:52.160 --> 00:01:56.880 But even beyond its role as a hedge, Bitcoin is  becoming more useful in everyday life. Whether   00:01:56.880 --> 00:02:01.760 you're paying a freelance designer overseas,  sending a gift to a friend abroad, or covering   00:02:01.760 --> 00:02:06.800 part of your rent when bank transfers are delayed,  Bitcoin offers a fast, low-fee way to move money   00:02:06.800 --> 00:02:11.040 without relying on traditional intermediaries. It's also increasingly spendable:   00:02:11.040 --> 00:02:15.840 you’ll soon be able to tap or swipe your BTC  for groceries, travel, or online subscriptions   00:02:15.840 --> 00:02:19.520 just like any other currency. Even as a  GoMining user, you’ll soon be able to pay   00:02:19.520 --> 00:02:23.360 for your daily purchases in Bitcoin. But it’s not only a future promise.   00:02:23.360 --> 00:02:26.320 Bitcoin payments are already on  the way to becoming a casual thing.  00:02:26.320 --> 00:02:30.640 Recently, the news came out that Steak ‘n Shake  started accepting payments in Bitcoin and now you   00:02:30.640 --> 00:02:35.600 pay with Bitcoin across its US locations.  Same with Home Depot, Burger King, Ikea,   00:02:35.600 --> 00:02:39.840 and many others. We are certain, more and  more companies and businesses will follow. 00:02:39.840 --> 00:02:43.040 At the same time, we get it—Bitcoin  can seem a little intimidating,   00:02:43.040 --> 00:02:46.960 especially since it hasn’t been around as  long as more familiar financial systems.  00:02:46.960 --> 00:02:50.880 The good thing is: you don’t need to go all  in. Even holding a small amount of Bitcoin   00:02:50.880 --> 00:02:55.600 can make sense: set aside what you’d usually  spend on takeout or streaming each month. You   00:02:55.600 --> 00:02:59.920 can let it accrue over time, or shift more  into BTC during periods of instability.  00:02:59.920 --> 00:03:04.560 But what makes Bitcoin more than just hype? Let’s examine it with a critical lens and ask:  00:03:04.560 --> 00:03:08.800 How Has Bitcoin Showed Its Worth Over Time? Bitcoin is a decentralized asset with a fixed   00:03:08.800 --> 00:03:14.400 supply. There will only ever be 21 million Bitcoin  in existence, a hard limit coded into its design.   00:03:14.400 --> 00:03:18.560 Unlike fiat currencies that can be printed  endlessly by central banks, Bitcoin’s scarcity   00:03:18.560 --> 00:03:22.960 makes it resistant to inflation by design. In  the current world financial conditions, where the   00:03:22.960 --> 00:03:27.440 value of traditional money can shrink overnight,  holding an asset that is not heavily subject to   00:03:27.440 --> 00:03:32.080 political decisions or monetary manipulation  can add stability to your financial plan.  00:03:32.080 --> 00:03:35.840 But Bitcoin’s advantages don’t stop  at scarcity. It’s portable and global,   00:03:35.840 --> 00:03:40.320 meaning you can move value across borders without  needing permission from a bank or government.  00:03:40.320 --> 00:03:45.200 Whether you live in New York, Barcelona,  Caracas, or New Delhi, Bitcoin operates on   00:03:45.200 --> 00:03:50.480 the same rules everywhere. It belongs to whoever  controls the private keys — not to a corporation,   00:03:50.480 --> 00:03:54.640 not to a government, and not to a bank. In a world where the value of government-issued   00:03:54.640 --> 00:03:59.200 money can plummet overnight, holding an asset  free from political influence and centralized   00:03:59.200 --> 00:04:02.640 control can bring much-needed  stability to a savings strategy.  00:04:02.640 --> 00:04:06.320 Bitcoin is not a great tool  just by design and in theory.  00:04:06.320 --> 00:04:09.920 For many people around the world, Bitcoin  has already proven its real-world value.  00:04:09.920 --> 00:04:14.000 During periods of hyperinflation in  countries like Argentina and Lebanon,   00:04:14.000 --> 00:04:17.520 local currencies collapsed while  basic necessities became unaffordable. 00:04:17.520 --> 00:04:22.400 In Argentina, for example, years of high inflation  wiped out the value of people’s savings, but those   00:04:22.400 --> 00:04:26.640 who held even a small amount of Bitcoin were  able to preserve part of their purchasing power.   00:04:26.640 --> 00:04:30.960 Some used Bitcoin to pay for essential goods,  others to move money out of unstable banking   00:04:30.960 --> 00:04:34.880 systems when capital controls made it nearly  impossible to transfer funds internationally.   00:04:34.880 --> 00:04:38.560 In these cases, Bitcoin was a lifeline. To give you another example of its   00:04:38.560 --> 00:04:41.440 resistance against inflation,  we can look even closer to home. 00:04:41.440 --> 00:04:45.920 Let’s have a look at this infographic. In the U.S., in 2013, the median price   00:04:45.920 --> 00:04:49.920 of a home was around $190,000,  and Bitcoin was trading at roughly   00:04:49.920 --> 00:04:55.520 $100. That means you would need about  1,900 BTC to buy the average house.  00:04:55.520 --> 00:05:01.520 Fast forward to 2021: the median U.S. home  price had risen to approximately $375,000,   00:05:01.520 --> 00:05:06.480 nearly doubling in USD terms due to inflation  and rising demand. But Bitcoin had appreciated   00:05:06.480 --> 00:05:11.760 much faster — by late 2021, it peaked  around $65,000. At that price, it would   00:05:11.760 --> 00:05:18.640 only take about 5.7 BTC to buy that same house. Even after the 2022–2023 crypto market correction,   00:05:18.640 --> 00:05:24.800 Bitcoin recovered and traded around $90,000  by 2024–2025. At that level, it still only   00:05:24.800 --> 00:05:30.080 takes about 4–6 BTC to buy a median-priced  home that would cost you $400,000+ in USD.  00:05:30.640 --> 00:05:34.960 To add to that, it’s not just a comparison  to USD to illustrate the price differences.  00:05:34.960 --> 00:05:39.520 You can actually buy real estate with Bitcoin in  several countries, including the UAE, Switzerland,   00:05:39.520 --> 00:05:43.280 El Salvador, some states in the USA. As part of a broader financial plan,   00:05:43.280 --> 00:05:46.880 Bitcoin offers something rare: a way to  step outside the risks of traditional   00:05:46.880 --> 00:05:51.920 financial systems and build a stronger,  more adaptable foundation for the future.  00:05:53.120 --> 00:05:56.400 Diversifying your budget isn’t about  placing everything in Bitcoin — it’s   00:05:56.400 --> 00:06:00.560 about understanding where it fits and how it can  help protect what you’ve worked hard to build. 00:06:00.560 --> 00:06:03.120 So far, we’ve covered how  Bitcoin can benefit your budget,   00:06:03.120 --> 00:06:06.320 but it would be utterly unfair to just  tell you about the benefits of Bitcoin.  00:06:06.320 --> 00:06:08.560 Drawbacks of Bitcoin Like any cryptocurrency,   00:06:08.560 --> 00:06:12.480 Bitcoin comes with its own risks, and  understanding them is key to using it wisely.  00:06:12.480 --> 00:06:15.200 One of the biggest challenges  is volatility. Bitcoin’s price   00:06:15.200 --> 00:06:19.520 can swing sharply over short periods. While its long-term trend has been upward,   00:06:19.520 --> 00:06:23.760 it’s common for Bitcoin to lose 20% or even  30% of its value in a matter of weeks during   00:06:23.760 --> 00:06:27.360 market corrections. This volatility can be  unsettling, especially for those who expect   00:06:27.360 --> 00:06:31.280 Bitcoin to behave like traditional savings. Another risk comes from scams and security   00:06:31.280 --> 00:06:35.360 threats. Because Bitcoin is digital and  decentralized, it places responsibility on   00:06:35.360 --> 00:06:40.240 the user. Scams, phishing attacks, and fake  wallets are common threats. Unlike banks,   00:06:40.240 --> 00:06:44.160 there’s no “undo button” if you send Bitcoin  to the wrong address or fall into a trap. 00:06:44.160 --> 00:06:47.360 That’s why learning basic security  practices — like using reputable   00:06:47.360 --> 00:06:51.840 wallets, setting strong passwords, and  double-checking transactions — is essential.  00:06:51.840 --> 00:06:53.520 Finally, Bitcoin has a learning curve. 00:06:53.520 --> 00:06:57.440 Managing a Bitcoin wallet isn’t difficult, but  it’s different from managing a bank account.   00:06:57.440 --> 00:07:02.000 You control your private keys. You are your  own bank. This independence is empowering,   00:07:02.000 --> 00:07:06.720 but it also requires users  to be informed and careful.  00:07:06.720 --> 00:07:06.951 Let’s pause for a moment and draw a comparison  between Bitcoin and Traditional Money: 00:07:06.951 --> 00:07:10.400 "Let’s take a moment to compare Bitcoin  with Traditional Money side by side.  00:07:10.400 --> 00:07:15.280 Starting with the Supply Limit — Bitcoin has a  hard cap of 21 million coins, meaning no more can   00:07:15.280 --> 00:07:20.160 ever be created. In contrast, traditional money  can be printed indefinitely by central banks.  00:07:20.160 --> 00:07:23.120 Next, we look at Inflation Risk.  Because of Bitcoin’s fixed supply,   00:07:23.120 --> 00:07:27.120 its inflation risk is low. Traditional money,  however, carries a high inflation risk,   00:07:27.120 --> 00:07:30.960 especially when governments print more currency. When it comes to Government Control, Bitcoin is   00:07:30.960 --> 00:07:35.040 decentralized — no single authority controls  it. On the other hand, traditional money is   00:07:35.040 --> 00:07:39.120 under full government control, including  central banks and monetary policies.  00:07:39.120 --> 00:07:43.680 Now, let’s talk about Price Stability. Bitcoin  is known for being volatile, with frequent price   00:07:43.680 --> 00:07:47.760 swings. Traditional money tends to be more  stable, at least in the short term, which is   00:07:47.760 --> 00:07:52.480 why it's commonly used for everyday transactions. Lastly, consider the Ease of Use. Using Bitcoin   00:07:52.480 --> 00:07:55.600 requires a bit of learning and technical  understanding, while traditional money   00:07:55.600 --> 00:07:58.880 is very easy and familiar to use —  it’s what most people are used to.  00:07:58.880 --> 00:08:03.440 So overall, Bitcoin offers a scarce,  decentralized, and low-inflation alternative,   00:08:03.440 --> 00:08:06.720 but it comes with volatility and a  learning curve. Traditional money is   00:08:06.720 --> 00:08:10.800 stable and easy to use, but it’s vulnerable  to inflation and government overreach." 00:08:10.800 --> 00:08:14.400 As the table shows, Bitcoin shines  where traditional money struggles,   00:08:14.400 --> 00:08:17.840 particularly in protecting against  inflation and political interference. 00:08:17.840 --> 00:08:22.080 But it also demands a higher level of personal  responsibility and acceptance of price swings.  00:08:22.080 --> 00:08:26.560 The key to using Bitcoin wisely isn’t pretending  it’s risk-free. It’s learning risk management,   00:08:26.560 --> 00:08:30.320 just like you would with anything new.  Starting small, using secure practices,   00:08:30.320 --> 00:08:34.240 and understanding your own needs and ability  to handle volatile price swings are essential. 00:08:34.240 --> 00:08:38.400 With the right mindset and preparation, Bitcoin  can be a valuable tool in your personal budget,   00:08:38.400 --> 00:08:44.080 one that offers freedom, resilience, and  the ability to adapt to a changing world.  00:08:44.080 --> 00:08:47.360 Risk Management: The Mindset You Need What’s the difference between using Bitcoin   00:08:47.360 --> 00:08:50.160 consciously and gambling with it? It all starts by learning how to   00:08:50.160 --> 00:08:52.560 manage risks the smart way. Here are the core principles   00:08:52.560 --> 00:08:56.320 to build a strong foundation: Rule 1: DYOR — Do Your Own Research  00:08:56.320 --> 00:09:00.800 The first rule is simple but crucial. Before you  go all in, take the time to understand Bitcoin:   00:09:00.800 --> 00:09:05.440 what it is, how it works, why it matters,  and why you’re including it in your budget. 00:09:05.440 --> 00:09:10.560 Never act based on hype, tweets or advice  from strangers online, or fear of missing out.  00:09:10.560 --> 00:09:13.600 The more you know, the smarter  and safer your decisions will be.  00:09:13.600 --> 00:09:18.800 Rule 2: Only put in what you can afford to lose Bitcoin can be a powerful resilience tool,   00:09:18.800 --> 00:09:22.480 but it still has legendary levels of  volatility. Your essential expenses,   00:09:22.480 --> 00:09:25.360 emergency savings, and basic security come first. 00:09:25.360 --> 00:09:29.440 Think of Bitcoin as a strength layer, not  a replacement for financial safety nets.  00:09:29.440 --> 00:09:32.640 Rule 3: Use the right tools  to protect your Bitcoin 00:09:32.640 --> 00:09:36.560 Choosing the right wallet matters. Learning  how wallets work — and eventually how to   00:09:36.560 --> 00:09:40.320 manage your own custody — is part of becoming  financially independent in the crypto world. 00:09:40.320 --> 00:09:42.480 Beginners often start with simple mobile wallets,   00:09:42.480 --> 00:09:45.440 but as you gain confidence, consider  upgrading to a hardware wallet. 00:09:45.440 --> 00:09:49.040 Remember, in the world of Bitcoin, you  are in charge. It is your responsibility.   00:09:49.040 --> 00:09:53.120 Managing your own custody puts you fully  in control of your assets and your future. 00:09:53.120 --> 00:09:57.440 Rule 4: Remember, Bitcoin is liquid If you ever need to access cash,   00:09:57.440 --> 00:10:00.240 Bitcoin can be converted into  traditional currencies (like dollars,   00:10:00.240 --> 00:10:02.880 euros, or others) through trusted exchanges. 00:10:02.880 --> 00:10:05.920 You’re never locked in if you don’t  want to be. You can stay flexible,   00:10:05.920 --> 00:10:10.640 ready to adapt to changing circumstances. Bitcoin isn’t about chasing shortcuts or   00:10:10.640 --> 00:10:15.200 taking reckless risks. It’s about acting  consciously — learning, planning, and building   00:10:15.200 --> 00:10:19.120 real financial resilience on your own terms. The more you treat Bitcoin as a long-term   00:10:19.120 --> 00:10:22.880 strategy — and not a shortcut — the more  powerful it becomes in your personal   00:10:22.880 --> 00:10:23.520 budget. Summary  00:10:23.520 --> 00:10:28.320 We've covered a lot of ground in this lesson, from  Bitcoin's revolutionary origins to the practical   00:10:28.320 --> 00:10:32.960 realities of its risks and rewards. Bitcoin  opens a new door, one that traditional budgets   00:10:32.960 --> 00:10:36.800 and banks often can’t offer anymore. It gives you a way to protect, move,   00:10:36.800 --> 00:10:40.000 and grow value on your own terms. You don’t have to know everything on   00:10:40.000 --> 00:10:44.720 day one. Start small. Learn carefully.  Build confidence one step at a time. 00:10:44.720 --> 00:10:47.440 The goal isn’t perfection.  It’s about having more options.  00:10:47.440 --> 00:10:50.000 You’re already ahead by exploring  how Bitcoin fits into a smarter,   00:10:50.000 --> 00:10:52.480 stronger financial plan. Let’s  keep this momentum going. 00:10:52.480 --> 00:10:56.080 The next lessons will show you how to  manage risks, protect your Bitcoin,   00:10:56.080 --> 00:10:58.000 and put it to work when you need it most.  00:10:58.000 --> 00:11:04.560 Now, let’s answer a few questions and I’m  looking forward to seeing you in Lesson 3!