The following single topic was spread across 3 consecutive weeks before the bi-weekly pattern began for “Beyond The County Line” column.
Part 1: May 15
Don’t Roll Your Eyes
Welcome back to this new space dedicated to looking forward and pondering.
How would you go about proclaiming your deep devotion to the love of your life in a way where no person, company, sovereign nation, or even the almighty US military could not erase or change that public proclamation? Is that possible? I’m here to tell you it is. Unfortunately, a noticeable percentage of you will likely roll your eyes when you hear the answer.
There is a very big event about to take place on the world stage that most people will hear about regardless of the newsfeed they have selected. During the end of May 2025, enthusiasts from around the world will gather at The Venetian in Las Vegas and celebrate the 7th annual Bitcoin Conference. That’s right. If you felt the urge to roll your eyes when you discovered this article is about Bitcoin, then I wrote this for you.
Attempting to explain this in less than 900 words is a bit ambitious. But two decades ago, I explained computers to clergy in the DFW-area down to the zeros and ones. I did this not to make them computer geeks, but to demystify an industry that employed huge percentages of their flocks. Computers are not magic, but if we don’t have some basic understanding of what’s happening inside those boxes, it might as well be magic.
Like computers, Bitcoin is complicated, but it is understandable. The real question is “why should you care?” The answer is akin to whether or not electricity, television, automobiles, aviation, money, or the Internet matter. I say they do. And whether or not you understand how electricity, television, automobiles, aviation, money, or the Internet works doesn’t stop us from using it. Bitcoin and other blockchain technologies will increasingly become part of your life sooner than you might think.
Please stick with me as I attempt to provide enough of a basic understanding of Bitcoin so that it can move out of the category of “magic.” To do this, we return to the original question of how a person can document something that no one – absolutely no one, anywhere – can alter or erase. And this is ultimately an issue of control. Who controls a system? Who has “administrative rights” to the data. This is where Bitcoin is practically unique. To start to understand why, there is a relevant religious phrase that is often borrowed to describe Bitcoin, and that is “immaculate conception.” It was not born like most systems. No one knows who created it.
In 2008, a nine-page document titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was released on an influential cypherpunk mailing list. The name on the document was Satoshi Nakamoto, which was a pseudonym. To this day, no one can prove who this person was or if it was a group of people publishing this how-to recipe under that name. This document defined what would become the code and protocol of Bitcoin. When people voluntarily decided to run this code on their own servers, they still didn’t control the system, but they did start building what has evolved into the Bitcoin network.
So, this “no one owns or controls the network” is absolutely essential to why Bitcoin matters. The obvious question is “Can’t the government make it illegal or take over the computers running Bitcoin?” The answer is no. This second key point is that the system is decentralized. This means that these systems are spread all over the world, even in space, and to control this network would mean someone would have to control 51% of the machines, and that is considered impossible. For example, China has declared some variation of banning Bitcoin multiple times – 2013, 2017, 2019, and four times in 2021. Each time, the network barely noticed.
Technically, the network is seen as unstoppable. Approximately every 10 minutes a new block of information is written to the network. And every block of new data is intertwined with all previous blocks. The Bitcoin network as a whole has never missed creating a new block every 10 minutes since the first block was mined on January 3, 2009. This level of reliability is significant.
Now, back to the example of declaring one’s love and devotion to your partner. Bitcoin is what is called open-source. There is no secret code. The network is completely open to everyone. Even though most data written on the network is financial transaction information, it is possible to write other information. And regardless of the type of data written, there is a small fee. For example, to write “Matt loves Miriam” would currently cost approximately $20. But, this written phrase would be permanent. No power known to man could change this. If that seems unlikely, that’s the kicker. I am here to tell you that it’s true.
On the surface, that mini-valentine may seem unimportant. But the fact that no government or mega-corporation can do anything about it is a new type of power that is valuable. This unique value is reflected in the value of each Bitcoin. In 2011, Bitcoin was worth $10. By 2016, Bitcoin was worth over $500. In 2019, it was around $8000. From 2021 to 2023, it averages over $30,000. Currently, each Bitcoin sells for over $90,000.
So, it has become obvious that I have failed. While I’ve covered some of why Bitcoin matters, I didn’t get to what a Bitcoin is. And even though this column is intended to be a biweekly offering, hopefully the next article can be published next week to complete this thought – just in time for the news you’ll be getting about the 2025 Bitcoin conference in Las Vegas.
Part 2: May 22
More Eye Rolling
Last week, we started a conversation surrounding a powerful new technology that is unstoppable by any person, company, or sovereign nation. Bitcoin.
To recap, Bitcoin is complicated, but understandable. It will eventually be as important as electricity, television, automobiles, aviation, money, and the Internet. Its birth is considered to be an “immaculate conception” because it was not born like most systems. No one knows who created it. Also, no one owns or controls the network. Technically, the network is seen as unstoppable, and the data written to the network every 10 minutes can never be changed. We also noted that these valuable characteristics are reflected in the value of each Bitcoin, which is currently over $100,000.
All of that supports the notion that Bitcoin matters. What was not accomplished in the last article is answering “What is Bitcoin?” The goal here is to demystify this new phenomenon. The details are not trivial and entire books are written for anyone who wants to go deep. That’s not this.
The notion of something that you cannot touch being worth close to $100,000 is a stretch for most people. Famous and smart people have publicly declared that the whole thing is a scam. I can see that temptation, but they are wrong. While it might be a stretch, I tend to see such disparaging statements loosely similar to declaring that 2+2=4 is a scam. It’s not. It’s math. And in so many ways, that’s what Bitcoin is… math. It’s just more complicated math. That’s why so many other smart people have invested massive amounts of money and energy into the Bitcoin network.
Bitcoin is built on a specific technology called blockchain. Much like Kleenex is a facial tissue, all facial tissues are not Kleenex, even though some people act like that is true. This is similar. Bitcoin uses blockchain, but there are other blockchain-based systems that are not Bitcoin. Why does this matter? Part of the unchangeable nature of Bitcoin is completely dependent on blockchain and being decentralized. That is where we must go next.
The original 2008 document detailing how Bitcoin works set some ground rules. Understanding what a single Bitcoin is requires understanding key parts of these rules. First, a Bitcoin is created during the repetitive process that specialized Bitcoin machines do over and over. This repetitive process is known as “mining.” Bitcoin mining is the process by which powerful computers solve complex mathematical puzzles to validate and record transactions on the Bitcoin blockchain. Understanding how this works is not necessary. Just know that there are a whole lot of computers all over the world competing, and spending lots of money on equipment and electricity so they can have the chance to mine (earn) Bitcoin.
People who own and run these mining computers are called “miners” and they compete to add new blocks of transactions. Every ten minutes or so, there’s a new race for who solves the next equation first. Functionally, it feels like a lottery. However, each time a mining machine “wins” they earn newly minted Bitcoin and transaction fees as rewards. That is when Bitcoin is created. This is their reward for writing data into the permanent record called a block – with each new block cryptographically tied to the previous block. This energy-intensive process maintains the blockchain’s integrity as it uses cryptography to ensure the data written to a new data block is unchangeable. And in doing so, this introduces new Bitcoin into circulation.
Every four years, the number of Bitcoin awarded for each new block is cut in half. Currently, the reward given out to winning miners for each new block is 3.125 BTC. At current rates, that is over $300,000 of value awarded every ten minutes. You can see the incentive for people, companies, or governments to mine Bitcoin. Mining is an entire industry itself.
Now, here’s the most critical rule that gives Bitcoin its greatest value and drives control-hungry governments and central banks crazy. There will never be more than 21,000,000 Bitcoin. No one will be able to make more than that. Unlike the US government which can just print more dollars, which leads to devaluation, Bitcoin cannot be manipulated. That is the real “magic” Bitcoin offers.
Bitcoin’s price is driven by supply and demand, and the supply cannot change. This creates scarcity that amplifies price increases when demand rises from investors, institutions, or adoption. This truly inelastic supply makes Bitcoin unique. When people are uncertain about the reliability or usefulness of the Bitcoin network, volatility follows. And Bitcoin has been one of the most volatile assets ever. And yet, over time, even with the uncertainty that has caused sharp price swings, Bitcoin’s value has steadily increased over time. Bitcoin’s annualized average from 2010 to 2025 is roughly 200–300% compounded annual growth rate. No other asset has behaved this way. This scares and confuses people.
Also, Bitcoin is part of the larger world of digital assets and cryptocurrencies. The fact that a high percentage of these other cryptocurrency projects have proven to be unsuccessful systems or actual scams, doesn’t apply to Bitcoin, even though some try to paint it as such. Even so, there are legitimate new technologies being developed within cryptocurrencies that are changing how people move value around the Internet. That’s another story.
Bitcoin matters. Everyone does not need to fully understand what I’ve presented here. But this technology called Bitcoin has a unique function and value. As more people understand this, more will buy it. And another benefit of Bitcoin is the ability to buy fractions, even down to a satoshi, the equivalent of 0.00000001 BTC – one hundred-millionth of a Bitcoin. So, you don’t need $100,000 dollars to buy Bitcoin. One satoshi currently costs $0.001028. I bet you can afford that! Regardless, Bitcoin is here to stay. Get used to it.
Part 3: May 29
Be Careful Out There
Sharing information about Bitcoin to coincide with the recent Bitcoin conference in Las Vegas seemed like a good idea at the time. Then I realized that I couldn’t leave it floating out there by itself in good conscience, because Bitcoin is not the entire story, even though there are some who act as if it is.
I appreciate your patience, as I never intended to start this bi-weekly column with three weekly articles about cryptocurrencies. My bad. But here we are, and I promise the next article will be about something else.
In the original article, I referenced a list of life-changing technologies including electricity, television, automobiles, aviation, and the Internet. As it goes, ushering in new powerful things often includes mortal mistakes. Over time, we have fewer people being accidentally electrocuted, fewer plane crashes, and less people email their cash to Nigerian scammers. However, those things still happen. Well, such growing pains are clearly also true of cryptocurrencies, except the masses have not yet learned the lessons. So with this truth, I’m saying “Be cautious.”
The success of Bitcoin has spawned a universe of “altcoins” – literally, alternative coins. While some altcoins aim to improve upon Bitcoin’s technology, offering faster transaction speeds, enhanced privacy features, or more complex functionalities like smart contracts, many others are vastly different creatures. They can range from serious technological contenders to speculative ventures, and unfortunately, outright scams. This is where all of us must tread with extreme caution.
The allure of quick profits in the volatile crypto market can be intoxicating, but it’s crucial to understand that not all digital assets are created equal. Bitcoin’s relatively long track record, its widespread adoption, and its robust, decentralized network give it a certain gravitas that most altcoins lack. Many altcoins have small development teams, limited use cases, and are highly susceptible to market manipulation and “pump and dump” schemes.
The cryptocurrency space, while full of legitimate innovation, is also a playground for sophisticated fraudsters. Understanding their tactics is your first line of defense. This is why I couldn’t just stop with two positive columns about Bitcoin and call it a day. This is serious business, and social engineering scams are particularly prevalent.
Here’s how it typically works. And notice the trend that is not just about cryptocurrencies. First, you get an unsolicited contact. A fraudster, often posing as customer support from a reputable company like Coinbase or another entity holding your data and coins, will reach out via text, email, or a phone call. They warn you about something bad and create a sense of panic, claiming your account is compromised or your funds are in imminent danger. Phrases like “Act now or lose your funds!” are designed to bypass rational thought. The scammer will then pressure you to divulge sensitive information like your password, two-factor authentication codes, or your wallet’s “seed phrase” which is a master key to your crypto. They might also instruct you to move your assets to a “safe” wallet, which, in reality, they control.
Here’s the deal. Reputable platforms and financial exchanges will never initiate contact to ask for your passwords or 2FA codes. They will also never demand you immediately transfer assets for security reasons without prior, official communication about product migrations or similar events.
While the potential of Bitcoin and select altcoins is undeniable, the path is fraught with peril for the unwary. Approach the world of digital assets with a healthy dose of skepticism, prioritize security, and remember: if an investment opportunity seems too good to be true, it almost certainly is. Educate yourself, protect your information, and never invest more than you can afford to lose.
With that warning, I am here to tell you that there are some very positive non-Bitcoin altcoins out there with real track records and real value being developed and grown right now. And for those who do their research and carefully invest, there will be a number of people who will make insane amounts of money as they ride this next wave of innovation into the future. Learning more about this new financial and technological ecosystem will be relevant, regardless if you figure out a way to parlay that understanding into new wealth. At minimum, I hope that fewer people in Bosque County will simply roll their eyes when they hear something about Bitcoin. It’s not a joke, and neither are its altcoin cousins.
And beyond this, let’s see what’s next!
J Matt Wallace