SIW Q&A
There are 21 questions I set out to answer as I progressed from
complete Bitcoin Noob in 2015 to the experienced Bitcoiner I am today.
These questions often required information and tools available on the internet to answer.
For some questions there were existing web-tools to derive useful answers with,
for others I found none.... so I had to build them myself.
If you require further guidance, click on the picture below to book a meeting so we can discuss it over coffee or tea.
Here are those questions, my POV and links to where you can find the answers for yourself.
Question #1:
What is Bitcoin?
Question #2:
Why is Bitcoin important?
My POV:
Bitcoin is 3 things in 1.
Bitcoin is a finite supply asset... it is an evolving technology... it is a decentralised network.
Bitcoin is neutral (not controlled by anyone) & secure (unhackable) and therefore ideal for individuals, organisations and nation states to save and conduct trade with.
Bitcoin is the global reserve asset humanity needs to incentivise cooperation over conflict.
My Sources:
Question #3:
Why is Bitcoin different from the rest of Crypto?
My POV:
Bitcoin is the original.
Altcoins are all mutated clones of Bitcoin.
Some are even clones of clones.
They are all Bitcoin minus some combination of crucial elements
such as proof-of-work, immutability, decentralisation, capped supply, halving schedule, difficulty adjustment, etc
as a trade-off for decreased block-time, increased block-size, variable or no supply cap, etc.
Many altcoins have already been hacked as a result of those trade-offs.
Altcoins will most likely eventually all fail either due to losing user confidence after progressively more severe
data breaches ( hacking),
rug-pulls (fraud & theft)
or being made redundant by Bitcoin's evolving and expanding usefulness on Layer 2, Layer3 and beyond.
My Source:
Question #4:
Why is Bitcoin superior to Fiat and all other Assets?
My POV:
Humanity originally started using barter to trade excess resources (perishable mediums of exchange) with family, friends and local tribes.
A broad range of commodities (non-perishable mediums of exchange) were tried over thousands of years, with gold emerging as the apex commodity to trade with strangers.
Fully-backed fiat currency emerged as a solution to the high level of difficulty in moving & securing large amounts of physical Gold.
Fractional reserve banking and deficit spending emerged as a result of the centralisation of physical gold.
Inflation emerged from fiat currency debasement.
Fiat-denominated assets appear to appreciate in value as a result of fiat currency debasement.
The true value of a house is its function as shelter for humans, not as a bucket to capture asset inflation.
Fiat inflation skews incentives and valuations.
Bitcoin is an economic immune response to the inflammatory effects of inflation and taxation on humanity.
Bitcoin is economic value aka "money" gone digital.
Through Bitcoin individuals can regain their sovereignty.
My Sources:
Question #5:
What is Relative-Fair-Value for 1 BTC?
My POV:
The Bitcoin supply is hard-capped at 21 Million BTC/ 2.1 Quadrillion SATS.
No amount of force, manipulation or enticement can change that.
Bitcoin is the world's first true scarcity.
In an ideal world, no amount of an infinite resource is fair value for a scarcity.
The closest we can get to fair value is the interaction between a willing buyer & a willing seller, tempered by available supply vs market demand.
Markets are driven by human emotion and therefore often overshoots fair value to overbought (greed) and oversold (fear).
Relative-Fair-Value is somewhere in the middle.
The more humans learn about Bitcoin, the higher the demand and therfore the higher the Fiat Price goes.
The correct answer is 1 BTC = 100 Million SATS.
My Sources:
Question #6:
How many SATS for 1 Fiat Unit of 180+ Fiat Currencies?
Question #7:
How many SATS for 1 Troy Ounce of Silver (XAG)?
Question #8:
How many SATS for Troy Ounce of Gold (XAU)?
My POV:
Currently the US Dollar is still the world's reserve currency, therefore all other Fiat Currencies, precious metals like Gold, Silver, etc are valued in USD units.
The amount of SATS a unit of any of 180+ Fiat Currencies, Gold, Silver, etc can buy can be calculated by using the USD as a measuring stick.
I could not find a tool that allowed me to calculate the Fiat Value of 1 SAT in each of the 180+ currencies and commodities.
I decided to build it myself and called it Fiat-Cost-Averaging (FCA).
Tracking the Fiat Price of 1 SAT over time, is quite eye-opening.
My Source:
Question #9:
What was the Fiat Price of BTC on historical date X?
Question #10:
How much BTC/SATS Purchasing Power Growth has occurred since date X?
My POV:
The Fiat Currency Price a willing buyer and a willing seller will conduct a trade for changes by the minute, hour, day, week, month and year.
These price-changes are recorded and can be looked up.
Outside of TradingView Charts and high dollar subscriptions to the likes of CoinMarketCap,
I could not find a tool that allowed me to look up the price of BTC on any given day all the way back to 2010.
I decided to build it myself and called it Bitcoin Historical Price Data (BHPD).
Comparing the current price to historical prices can be quite eye-opening.
My Source:
Question #11:
What is SATS-stack X worth today?
My POV:
When doing Fiat Cost Averaging, your SATS stack grows over time.
It is useful to be able to check on the purchasing power growth of those SATS at any given time.
I could not find a tool that allowed me to calculate the current Fiat value of the SATS in multiple different wallets.
I decided to build it myself and called it the SATS Value Report (STAX-A ).
My Source:
Question #12:
What will SATS-stack X be worth at future price Y?
My POV:
When doing Fiat Cost Averaging, your SATS stack grows over time.
It is useful to be able to check what your SATS stack will be worth in Fiat Units at milestones like 1 BTC = $100K, $250K, $1 Million, etc.
I could not find a tool that allowed me to calculate the potential future Fiat value of the SATS in multiple different wallets.
I decided to build it myself and called it the SATS Value Report (STAX-M ).
My Source:
Question #13:
What do my finances look like in terms of Bitcoin SATS?
My POV:
When you view your monthly budget in terms of Bitcoin SATS, you get a very different picture.
I could not find a tool to help me budget better and view my finances in term of SATS earned & spent.
I decided to build it myself and called it Cash-Flow-Control (CFC).
Looking at your finances from this perspective is quite eye-opening.
My Sources:
Question #14:
How can I adjust my budget to save more SATS?
My POV:
Most humans are not naturally adept at budgeting effectively to attain and retain affluence.
I could not find a tool to help me allocate capital effectively and view it in terms of SATS.
I decided to build it myself and called it Savings, Investment & Trading (SAINTR).
Looking at your finances from this perspective is quite eye-opening.
My Source:
Question #15:
How do I send and receive SATS?
My POV:
There are 100 Million Satoshis (SATS) in each of the 21 Million Bitcoin, resulting in 2.1 Quadrillion SATS.
Bitcoin Layer 2 solutions like the Lightning Network allow users to send fractions of a Bitcoin (SATS)
through payment channels anchored in the Bitcoin blockchain (Layer 1).
When you run a Bitcoin and Lightning Node you are using Layer 2 directly with a "non-custodial" wallet where
you control the private keys and you use your own liquidity to settle payments.
Layer 3 is where you use a 3rd party service provider's "custodial" wallet where
they control the private keys and they allow you to use their liquidity to settle payments.
My Sources:
Question #16:
How do I secure my SATS stack?
My POV:
To effectively secure large (BTC) and small (SATS) amounts of Bitcoin, the private keys
must be stored disconnected from the intenet (where potential hackers can gain access to it).
The solution the Bitcoin community came up with for this purpose is called a Hardware Wallet.
My Sources:
Blockstream Jade - International
Blockstream Jade - Local
Question #17:
Where can I spend my SATS?
My POV:
While the smartest thing to do with SATS is to keep stacking them, there is a growing movement to offer products and services in Bitcoin SATS to create a circular economy outside of the fiat currency gulag. As more humans learn of and adopt Bitcoin, it will become more and more commonplace to have the option to pay or charge in SATS.
My Sources:
Question #18:
How can I use knowledge of the 4 year Bitcoin cycle to stack more SATS?
My POV:
Historical data shows that the Fiat Price for Bitcoin goes through a Bull, Bear and Crab cycle that typically last 4 years and then repeats.
While it is definitely easiest and safest to just accumulate and HODL,
some humans recognise this cycle and use it to trade their way to more Bitcoin at the end of the cycle than they had at the start of the cycle.
I've investigated this cycle and decided to build a tool to project key dates to pay attention to, starting from the date of the HAL-FIN-ING (halving) for each cycle.
I call it the B4YC report.
Comparing these projected dates with historical price data for previous cycles, is quite eye-opening.
My Source:
Question #19:
How many SATS do I need to earn daily/weekly/monthly to replace my FIAT Salary?
My POV:
Most humans are not able to break their salary down into the basic numbers that go into it
such as salary per hour as it relates to minimum wage, number of productive and non-productive days (from an employer's perspective).
Armed with this knowledge some humans may even decide to replace their salary with less laborious forms of earning income.
Viewing these numbers in terms of SATS is quite eye-opening.
My Source:
Question #20:
How can I trade my way to more SATS?
My POV:
While "stacking sats" through the income generated by your current profession is a great idea, some humans recognise that there are other ways to add to that stack.
Income from investments in the stock market, bond market etc can be converted to SATS.
There is also a huge Crypto Market where the price volatility can be harnessed to generate more SATS.
Please note that I do not consider the buying and selling of Altcoins as an "investment"... it is just a "trade" in search of profit.
I've been active in this market since 2017 and have learned a lot of hard lessons through trial and error.
From this emerged a risk-managed trading strategy I call the "Hundred Trades Strategy"
I developed and built a set of tools and templates to assist me in excecuting this strategy.
My Sources:
Hundred Trades Strategy Flowchart
Hundred Trades Strategy Terminology
Trade Methodology - On CoinPanel
Trade Methodology - On Exchange
Trade Signal Evaluation - Short Term
Trade Evaluation Template - Short Term
Trade Evaluation Template - Fibonacci Ratios
Trade Evaluation Template - One X
Trade Evaluation Template - Medium Term #1
Trade Evaluation Template - Medium Term #2
Question #21
How can I earn SATS?
My POV:
In 2010 there were "Bitcoin Faucets" on the internet that rewarded you with 5 BTC ( 500 Million SATS) for simply solving a
CAPTCHA (Completely Automated Public Turing test to tell Computers and Humans Apart) and downloading a Bitcoin wallet.
On 22 May 2010, the first recognised Bitcoin transaction was 10 000 BTC ( 1 Trillion SATS) for two pizzas.
Just as the purchasing-power-growth of a full Bitcoin was taken for granted in 2010,
similarly the purchasing-power-growth potential of 21, 100 or even 10 000 SATS is taken for granted in 2024.
On NOSTR you can get "zapped" any amount of SATS for providing valued or "zap-worthy" content.
This is known as the V4V (value-for-value) economy.
Here in SIW, you have the option to pay per use (in SATS) for each of the above-mentioned tools/templates
or access all tools/templates through a monthly/ annual/ epoch subscription.
If you find that the SIW tools and templates work for you
and you introduce a family member, friend or coworker that purchases their own subscription,
you earn 20% of their spend for being a great mentor.
My Sources:
Other ways to earn some SATS
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Disclaimer:
The use of the tools on this website are 100% at the user's own risk. All calculations are for educational purposes only. None of the content should be viewed as financial advice to buy or sell anything. Caveat Emptor, Caveat Venditor. DYOR.
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