What is Bitcoin?
Bitcoin is a fully decentralised computer network that uses its own digital currency to facilitate secure peer-to-peer transactions.
What service does Sovereign Digital provide?
Sovereign Digital offers education, training, and consultation for organisations seeking to understand and adopt Bitcoin as part of its operational strategies.
Why would I want to own Bitcoin?
Throughout history, governments have debased their currency. Today, most nations are suffering the effects of inflation and there are numerous countries living through periods of hyperinflation, Argentina and Venezuela to name just two of them. Bitcoin provides protection against the debasement of currency and is often called a ‘life raft’ for those living in countries where inflation is rampant.
What is Hyperinflation?
Hyperinflation is often characterised by monthly inflation rates exceeding 50%.
Why do people trust Bitcoin?
Bitcoin is decentralised, meaning no single entity controls the network. It operates through consensus, ensuring that no central point of failure exists. The recent outages experienced by numerous banks and businesses due to the Cloud Strike incident highlight the importance of decentralised systems. For instance, the Bank of England was unable to conduct business during the outage. In contrast, Bitcoin continued to function smoothly, unaffected by the world wide disruption.
I thought Bitcoin was only for criminals?
Protecting your savings and purchasing power by moving away from national currencies that are continually being devalued is not a criminal act. Whilst it is true that some criminals use Bitcoin, this is not an argument against Bitcoin itself. Criminals also use smartphones, cars, and the dollar, with more money laundering being facilitated by the dollar than by Bitcoin.
I thought Bitcoin was bad for the environment?
Bitcoin mining has long been misunderstood, but perceptions are starting to shift. Bitcoin mining is enabling the use of stranded energy and even subsidising the development of green energy infrastructure in areas where it previously didn’t exist—offering the poorest communities access to power and the benefits that come with it.
What is Self-custody?
Bitcoin is a digital asset, and like other assets, it can be owned. It can be stored via third-party exchanges, custodians, digital and hardware wallets and even slips of paper. Self-custody is the practice of storing and maintaining your own Bitcoin without the reliance or need for a third-party.
Bitcoin is too expensive. How can I afford it?
The housing market, once a traditional asset accessible to everyday families, is no longer affordable for many. One of the key benefits of Bitcoin is that it allows individuals to own an asset regardless of their wealth, as 1 Bitcoin is divisible into 100,000,000 satoshis, or sats. As of August 2024, you can purchase just over 2,000 sats for £1. These sats can be accumulated over time, offering people one of the most effective savings technologies available today.
Who owns Bitcoin?
Estimates as of mid-2024 suggest that between 150-200 million people own Bitcoin globally.
Why do people trust Bitcoin?
People trust the Bitcoin network because it is a fully decentralized system that relies on mathematical principles and consensus for governance. With no single entity controlling the network, it has demonstrated its robustness and anti-fragility over the past fifteen years.
What happens if I lose my Bitcoin?
Due to the nature of the Bitcoin network, if you lose your private keys then there is a very high probability that they will be lost forever. If you hold Bitcoin as an individual, and you do not take steps to pass down your Bitcoin, this too could also be lost. Losing Bitcoin reduces the total supply and therefore leads to an increase in demand and price.
Is Bitcoin legal?
Yes. There are some jurisdictions where Bitcoin, or some of element of it, such as mining, is illegal. For example, China banned Bitcoin mining in 2021, and the miners fled the country and mined elsewhere as a result.
Is Bitcoin secure?
Bitcoin is the most powerful and secure computer network in existence. As of August 31st, 2024, the network operates at approximately 658 exahashes per second (EH/s). To put that into perspective, 1 exahash equals 1 quintillion (10^18) hashes. This means the Bitcoin network is currently performing 658 quintillion hashes every second.
