At Cointap, we stick closely to our beliefs. Our experience has taught us that being authentic is a key driver to long term success.

Being true to yourself makes us feel better and happier. This creates greater and more effective creative output. Relationships will last longer as they are based on true intentions. Most importantly, we can connect with our customers and deliver products and services that will make their lives better.

What does this have to do with Bitcoin? Well it is pretty simple. These guiding beliefs are why we choose to focus on Bitcoin. We believe that Cointap’s greatest value lies in expanding and improving the Bitcoin ecosystem. We’ve learned over the years that Bitcoin itself is where the most effort and important work has to keep occurring.

Here are some of the factors why we believe our thesis on Bitcoin will continue to be true.

 

The Story

It may not seem relevant for successful technology or money to have a compelling back story. However, money is a shared belief system. Having a clear foundational story and principles facilitates Bitcoin’s strength. Without a guiding belief system, co-operation among large groups of human beings is near impossible. Countries, religions, and businesses are a gathering of people around common purpose and belief in a way the world should work to achieve an intentional goal. Bitcoin is no different. Global participation in an internet-based, decentralized, deflationary monetary system requires millions (billions) of people to believe in this system being an improvement for society going forward. Even if its an unproven concept, having a belief in something helps encourage people to try the experiment and get through the thick and thin of trying to build a better future.

So what exactly makes the back story of Bitcoin so compelling? Bitcoin was created under the pseudonym Satoshi Nakamoto. The original “white-paper” or document explaining Bitcoin was released onto a cryptography mailing list, metzdowd.com. The title “Bitcoin: A Peer-to-Peer Electronic Cash System” outlined the

It would be impossible to recreate Bitcoin. The timing and pieces all came together at a perfect moment in time. Combined with careful planning

 

Trust

Bitcoin was created to deliver a massive network of trust. Not trust in the counter-parties you are working with, but trust in the underlying network. No matter what, you can rely on the authenticity of Bitcoin transactions occurring on the network. Trust is constantly being place and reinforced on Bitcoin. The longer the networks keeps working, resisting attacks and attracting more users that trust is solidified and reinforced. Trust is a fleeting commodity in our present systems and institutions. Bitcoin continues to gain respect the longer it last, the more it overcomes challenges all while sticking to its principles.

Bitcoin is open source. Anyone can audit and contribute to the code. Transactions are broadcast instantly and set in stone once confirmed, backed by encryption and energy. There are a number of critical, known factors the system must follow (total coins, inflation rate and future halvings, difficulty adjustments, block times, etc.) that are constantly verified by network participants.

These factors have been built to enable network participants to all transact and work together without needing anything other than the network itself to enable participation. The Bitcoin blockchain is a giant trust system. Hundreds of billions, trillions or any other dollar (or satoshi) figure of economic activity can occur seamlessly. That is incredible. Don’t take our word for it though, see the number of billionaires, technology companies, financial institutions all vouching their confidence in how trustworthy this system is. [LINKS].

Long Term Value

To build a business, make an investment or any significant life decision such as starting a family is an exercise in long term thinking. Any of these activities is a preference to sacrifice something today to hopefully create a greater future. If you buy a house, you likely want it to last for a large portion (if not all) of your life. A business is better if it generates you cash flow for decades. Same with Bitcoin. Building a business and investing in Bitcoin is a longer-term bet than you might think, for a few reasons.

Bitcoin was built for long term value. The inflation schedule of new Bitcoin’s being released was done so that the final Bitcoin will not be released until (at current estimates) the year 2140. Further, Bitcoin was built to have rock solid security, it is tamper resistant and its data will last forever on the blockchain. Betting on Bitcoin is actually a bet on very long term stability and growth.

To extract the most value from Bitcoin, we encourage you to increase your time preference to multiple decades, not months or years.

Getting the Basics Right

Do you remember hearing the phrase “Walk before you can run”? If you do, it’s a good reminder of how infrequently this advice is followed. Naturally we all want to be good at something right away and receive a dopamine hit. Luckily for the world, Bitcoin learned to walk first. The birth was was the Bitcoin whitepaper, which beautifully outlines the framework for Bitcoin. For many years after the whitepaper was released, many small steps kept occurring to propel Bitcoin forward.

With varying degrees of fanfare, the community kept running nodes, mining coins, putting in development hours, starting businesses and telling their friends about it. Test after test, hurdle after hurdle, this volunteer run network kept learning lessons and growing.

To this day, Bitcoin’s pace is slow and steady. Little by little, new features are proposed. Some ideas are abandoned, the good ones rise to the top and go through a systematic vetting and voting process before being implemented. This process of slow growth is all a feature, not a bug. Without getting the basics right, not just right but absolutely nailing the basics, Bitcoin wouldn’t have made it this far. Money needs to be created carefully and thoughtfully and it cannot stray from those principles.

Bitcoin got the basics right. It will keep adding in the necessary features as the market demands them and when they can be implemented properly.

 

Scale, Distribution and Network Effects

Community and Support

 

 

To be clear, we do explore other areas of the cryptocurrency ecosystem and will continue to do so. There will be interesting trends, technological developments and communities that help our overall industry grow. There will also be unethical, un-contributing, negative and useless developments that are important to avoid and learn from. Our advice and strategy is to observe what is occurring. We will learn and apply what the market demands but remain focused on the goal of expanding Bitcoin.

We never would’ve gotten here without the great minds that have mentored us to the place we are at today. Luckily the guiding voices for our path extolled on us the great care and moral compass set forth by the early Bitcoin community. As a show of respect to our teachers, we chose to continue sharing these values with the future generations.

If you’d like to read more about other factors of what make Bitcoin so unique and important, stay tuned to our blog here and on Medium.

Keep on coining!

-Cointap