Bitcoin. What is it, and what are some of the most common questions and concerns? I am going to provide some answers in this article so you can decide if you should invest in bitcoin in 2025.

Bitcoin and cryptocurrency is a complicated and confusing topic, especially because of the sheer volume of noise on the internet.

The reality is that most curious bitcoin newbies end up finding all the wrong information. They end up gambling, and making common, frustrating mistakes that lose them money.

So let’s get on with it. These common and essential bitcoin questions should put you on the right path.

Before we begin, take note of this rule:

Do your own research on bitcoin and cryptocurrency, and invest accordingly. Take responsibility and don’t let other people tell you what to do with your money. I will provide some basic information, but ultimately, it’s your decision to make.

What Is Bitcoin?

Bitcoin is decentralized digital money and a payment network — very simple answer. But what makes it money, and why is it a very special form of money?

Well, to answer that question, we need to look at how well bitcoin possesses the characteristics of money.

1. Durability – It’s easy to preserve and difficult to destroy. Bitcoin is digital and so it doesn’t decay.
2. Portability – Bitcoin is infinitely portable because it has no physical form. You can hold bitcoin on your phone, computer or hardware wallet. You can even write it down a piece of paper!
3. Fungibility – Each unit of money must be interchangeable with any other unit. For example, all $100 bills are equal. In some ways, gold coins are less fungible than dollars, because scratches and blemishes can decrease their value. Bitcoin, like dollars, are highly fungible.
4. Divisibility – Bitcoin is the absolute King of divisibility. It can be broken down into 100 million units. The smallest unit of bitcoin is called a satoshi, or a sat.
5. Acceptability – Bitcoin isn’t the best at acceptability in 2025. In America, you can buy anything with the Dollar, but bitcoin isn’t widely accepted, and so it isn’t often used as a medium of exchange. However, bitcoin’s acceptability is trending upward.
6. Scarcity – Unlike the Dollar, which can be printed by the Federal Reserve on demand, bitcoin has a very predictable supply schedule, and it is one of the most scarce resources known to man. There will only ever be a maximum of 21 million bitcoins. Nobody controls its inflation and nobody can print it to infinity. So when you hold bitcoin, its value will actually increase over time rather than decrease.

Why Bitcoin Matters

As you can see, bitcoin has the characteristics of money, and besides acceptability, it is often considered to be the ultimate form of money.

Anyone can buy and sell bitcoin, 24/7/365. It is permissionless. It is fair. No government, organization or corporation can change the rules to their benefit and our disadvantage.

Bitcoin is limited in supply but limitless in its possibility. What other form of money is as fair, just, portable and useful? In The Age of Bitcoin, it is as easy to send and receive money as it is to send an email.

In the video below, Michael Saylor describes how bitcoin is the only asset that can’t be taken from you. It is money that you can take to your grave.

Bitcoin is something you can truly own. It’s a bearer asset, meaning that ownership is determined by physical possession. Since bitcoin isn’t a physical asset, and it isn’t controlled by banks or governments, it is the cheapest and easiest way to keep total control of your wealth.

In many ways, it is the only way to keep total control of your wealth. Everything else can be taken from you. Your bank account can be frozen, your gold bar can be stolen, and your house can be repossessed or taken by eminent domain.

Why Invest in Cryptocurrency and Bitcoin?

Can you see now why you, as a sovereign individual, may want to own bitcoin? It is unconfiscatable, private, easy to hide, and deflationary.

Deflationary – “associated with or tending to cause decreases in consumer prices or increases in the purchasing power of money.”

Since the supply is so limited, bitcoin’s purchasing power increases over time as its demand increases. Imagine that. Unlike dollars or euros in the bank, bitcoin actually increases in value over time.

So if you invest in bitcoin, you don’t have to gamble in the stock market just so you can barely beat inflation. You can just hold bitcoin, and watch your wealth grow over time — especially if you buy it before it thoroughly catches on.

This is one of the great Satoshi Nakamoto quotes from the early days. That’s bitcoin’s creator and there are many interesting quotes worth reading here.

What’s the Best Cryptocurrency to Buy Today?

If you’ve looked around on the internet, checked coinmarketcap.com or been on “Crypto Twitter,” you must have noticed just how many cryptocurrencies exist. How do you decide which one to buy?

The bitcoin maximalists argue that bitcoin is the only crypto worth buying and that other cryptos are akin to gambling.

Proponents of alternative cryptocurrencies (altcoins) want you to believe that bitcoin is old technology. It is slow, and it isn’t suited to a modern economy. It is the “MySpace” of crypto.

The Arguments For Bitcoin-Only

Let’s look at some of the main arguments of the Bitcoin Maximalists:

1. Bitcoin is the one, true cryptocurrency – Bitcoin is better due to its first mover advantage, security, decentralization and “immaculate conception.” This refers to the mysterious origin of bitcoin’s creator Satoshi Nakamoto. Satoshi did humanity a great service by creating bitcoin before disappearing forever. Now, there is no central figure that can be manipulated or forced to make changes to bitcoin in service of governments and central bankers.
2. Fixed Supply – Bitcoin will only ever have 21 million coins. For reasons beyond the scope of this article, this supply cap is unchangeable. It means that bitcoin can never be inflated against its users’ interests. Read this article by River for more information.
3. Network Effect – Bitcoin has the largest user base, the most mining power, and, by far, the largest market cap. According to bitcoin maximalists, money is winner-take-all, and bitcoin is way further ahead than any other crypto.
4. Bitcoin Knows What it is – Bitcoin is the best money ever created, and it isn’t trying to be anything else. Altcoins are supposed to be technically superior and more feature rich, but bitcoin solves the problem of fiat currency, and it does so exceedingly well.

The Arguments For Alternative Cryptocurrencies

Now let’s look at the arguments of those that bitcoiners lovingly call “shitcoiners”

1. More Innovative – Altcoins can be used for financial transactions just like bitcoin, but they also offer innovations such as smart contracts and faster transactions.
2. Scalability – Many altcoins claim to handle more transactions per second than bitcoin, and so they can be used by more of the global population.
3. Diversification – Altcoins offer a way for investors to diversify and possibly outperform simple, boring, old bitcoin.

There’s plenty of opportunity in Crypto to invest in a variety of exciting coins, memes and technologies, but they don’t often (or ever) live up to expectations.

For example, ethereum is supposed to be a global computer, but it hasn’t provided much of a use case beyond being a casino for memecoins and NFTs.

Point #2, scalability, hasn’t been a problem on bitcoin since the popularization of lightning, and altcoins have historically underperformed bitcoin by a lot, so it’s been a terrible strategy for diversification.

You can watch this video by Bitcoin University for more on scalability.

In summary, you need to do your own research, but it would be prudent to exercise caution before following the hype into an altcoin investment.

Bitcoin is the standard in cryptocurrency. It’s been around since 2009, and I think that once you download a wallet, buy your first bitcoin and start sending and receiving transactions, you will be thoroughly satisfied.

Anyway, if you decide to move forward and invest in bitcoin, the next question is obvious and the answer is not always clear.

How Much Should You Invest in Bitcoin?

This is a very personal question that you need to answer yourself. Some people invest a small percentage of their wealth into bitcoin, while others go 100% all-in. They think that bitcoin’s value proposition speaks for itself, and the price history has proven their thesis.

These people who go all-in want to be positioned for hyperbitcoinization — the time when bitcoin becomes the global dominant money. They think this is inevitable. Do you? Or are you still figuring out what you believe about bitcoin?

Many people tell new bitcoiners to only invest what they’re willing to lose.

Other experienced bitcoiners suggest that bitcoin is a vehicle for savings, and recommend the complete opposite, like this tweet by Rajat Soni.

My advice is to do your research and invest accordingly. Whatever you do, make sure you’re able to sleep well at night.

To get started, download a wallet, buy bitcoin anonymously, learn how to send bitcoin, and study the best money the world has ever known.

I recommend that you stay away from large exchanges like Coinbase, but there are some excellent alternatives for you to check out.

Best Bitcoin Exchange in Canada and Europe

If you’re in the USA, I generally recommend looking into River.com or Bitcoinwell.com, but in Canada and Europe (and Mexico and Costa Rica), Bull Bitcoin is the best exchange.

Bull Bitcoin is bitcoin only, so if somehow my article has convinced you to buy an altcoin, look elsewhere.

But if you want bitcoin, Bull offers many useful features:

• Best-in-class customer service – unlike most large exchanges, you get to speak to a real human being.
• Multiple ways to fund your account – Bank transfers, e-transfers, SEPA, or even buy with cash in-person at Canada Post.
• Lightning, Liquid and DCA – Save on fees and increase privacy with bitcoin buys and on lightning and liquid networks. You can even set up hourly, daily or weekly dollar-cost-average buys.
• Pay Bills with Bitcoin – You can sell bitcoin directly to any credit card, bank account, or bill payment invoice. Bull Bitcoin allows you to live on a Bitcoin Standard.
• Respect For Your Privacy – Bull Bitcoin never sells your personal information to governments or chain analysis companies.

If you’d like to make your first purchase on Bull Bitcoin, use my referral link to save 0.25% on all bitcoin buys, and help me get a small commission to stack a few extra sats.