THE ULTIMATE

GUIDE TO BITCOIN
Investment For Canadians in 2021

Bonus Content: Bitcoin VS Gold!

Key Points
Launched in 2009, Bitcoin is the world’s largest cryptocurrency by market cap.
Scarce, only 21Mio Bitcoin will ever exist.
Unlike fiat currency, Bitcoin is created, distributed, traded, and stored with the use of a
decentralized ledger system known as a blockchain.
As the earliest cryptocurrency to meet widespread popularity and success, Bitcoin has
inspired a host of other projects in the blockchain space.

Bitcoin is a type of cryptocurrency. Balances of Bitcoin tokens are kept using public and private “keys,” which
are long strings of numbers and letters linked through the mathematical encryption algorithm that was used
to create them. The public key (comparable to a bank account number) serves as the address which is
published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is
meant to be a guarded secret and only used to authorize Bitcoin transmissions. Bitcoin keys should not be
confused with a Bitcoin wallet, which is a physical or digital device that facilitates the trading of Bitcoin and
allows users to track ownership of coins. The term “wallet” is a bit misleading, as Bitcoin’s decentralized
nature means that it is never stored “in” a wallet, but rather decentrally on a blockchain.

Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The
independent individuals and companies who own the governing computing power and participate in the
Bitcoin network, are comprised of nodes or miners. “Miners,” or the people who process the transactions on
the blockchain, are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin.
These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin
network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the
total supply of bitcoins approaches 21 million. As of July 2020, there are roughly 3 million bitcoins that have
yet to be mined. In this way, Bitcoin (and any cryptocurrency generated through a similar process) operates
differently from fiat currency; in centralized banking systems, the currency is released at a rate matching the
growth in goods in an attempt to maintain price stability, while a decentralized system like Bitcoin sets the
release rate ahead of time and according to an algorithm.

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Key Points
The first step is to download a bitcoin wallet, which is where your bitcoins will be stored for
future spending or trading.
Buy bitcoins on exchanges that you can then send to your wallet.
Bitcoin platforms will require you to go through a KYC process.
The information that is getting collected is very similar to opening a new bank account.
Bitcoin can be bought on exchanges or directly from other people via marketplaces.

You can purchase bitcoin in a variety of ways, using anything from hard cash to credit and debit cards to wire
transfers, or even other cryptocurrencies, depending on whom you are buying them from and where you live.

The first step is to set up a wallet to store your bitcoin – you will need one, whether you’re buying bitcoin online
or with cash. This could be an online wallet (either part of an exchange platform, or via an independent
provider), a desktop wallet, a mobile wallet, or an offline one (such as a hardware device or a paper wallet). The
most important part of any wallet is keeping your keys and/or passwords safe. If you lose them, you lose
access to the bitcoin stored there. In addition, never invest more than you can afford to lose – cryptocurrencies
are volatile and their prices could go down as well as up.

If you want to buy bitcoin online, you can open an account at a cryptocurrency exchange that will buy and sell
bitcoin on your behalf. There are hundreds currently operating, with varying degrees of liquidity and security,
and new ones continue to emerge while others end up closing down due to hacking. As with wallets, it is
advisable to do some research before choosing – you may be lucky enough to have several reputable
exchanges to choose from, or there might just be one or two based on your geographical area.

With the clampdown on know-your-client (KYC) and anti-money-laundering (AML) regulation, many exchanges
now require verified identification for account setup. This usually includes a photo of your official ID, and
sometimes also a proof of address. Most exchanges accept payments via bank transfers or credit cards, and
some are willing to work with Paypal transfers. They typically charge fees for each transaction, which include
the cost of using the bitcoin network.

A bitcoin transaction takes anywhere from a few minutes to a couple of days to process, depending on the
traffic in the network as well as the fee attached to that transaction. Once the exchange has received payment,
it will purchase the corresponding amount of bitcoin on your behalf, and deposit them in an automatically
generated wallet on the exchange. You should then move the funds to your off-exchange wallet.

02
WHY DOES BITCOIN HAVE VALUE?

Key Points
Bitcoin is decentralized.
Bitcoin is the hardest currency in the world with a supply of 21Mio in total.
The Bitcoin blockchain ledger provides a permanent record of all transactions.
Bitcoin is a highly portable cryptocurrency.

Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money
(durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of
mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like
fiat currencies). In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form
of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of
users, merchants, and startups. As with all currency, bitcoin’s value comes only and directly from people willing
to accept them as payment.

What determines bitcoin’s price?

The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price
increases, and when demand falls, the price falls. There is only a limited number of bitcoins in circulation and
new bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level
of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could
be, it doesn’t take significant amounts of money to move the market price up or down, and thus the price of a
bitcoin is still very volatile.

Can bitcoins become worthless?

Yes. History is littered with currencies that failed and are no longer used, such as the German Mark during the
Weimar Republic and, more recently, the Zimbabwean dollar. Although previous currency failures were typically
due to hyperinflation of a kind that Bitcoin makes impossible, there is always a potential for technical failures,
competing currencies, political issues, and so on. As a basic rule of thumb, no currency should be considered
absolutely safe from failures or hard times. Bitcoin has proven reliable for years since its inception and there is
a lot of potentials for Bitcoin to continue to grow. However, no one is in a position to predict what the future will
be for Bitcoin.

THE ULTIMATE GUIDE TO BITCOIN: Investment For Canadians in 2021 03

A fast rise in price does not constitute a bubble. An artificial over-valuation that will lead to a sudden downward
correction constitutes a bubble. Choices based on individual human action by hundreds of thousands of market
participants is the cause for bitcoin’s price to fluctuate as the market seeks price discovery. Reasons for
changes in sentiment may include a loss of confidence in Bitcoin, a large difference between value and price
not based on the fundamentals of the Bitcoin economy, increased press coverage stimulating speculative
demand, fear of uncertainty, and old-fashioned irrational exuberance and greed.

Is Bitcoin a Ponzi scheme?

A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or
the money paid by subsequent investors, instead of from profit earned by the individuals running the business.
Ponzi schemes are designed to collapse at the expense of the last investors when there are not enough new
participants.

Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make
fraudulent representations about investment returns. Like other major currencies such as gold, United States
dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads
to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is
also a payment system with useful and competitive attributes that are being used by thousands of users and
businesses.

Doesn’t Bitcoin unfairly benefit early adopters?

Some early adopters have large numbers of bitcoins because they took risks and invested time and resources
in an unproven technology that was hardly used by anyone and that was much harder to secure properly. Many
early adopters spent large numbers of bitcoins quite a few times before they became valuable or bought only
small amounts and didn’t make huge gains. There is no guarantee that the price of a bitcoin will increase or
drop. This is very similar to investing in an early startup that can either gain value through its usefulness and
popularity, or just never break through. Bitcoin is still in its infancy, and it has been designed with a very long-
term view; it is hard to imagine how it could be less biased towards early adopters, and today’s users may or
may not be the early adopters of tomorrow.

Won’t the finite number of bitcoins be a limitation?

Bitcoin is unique in that only 21 million bitcoins will ever be created. However, this will never be a limitation
because transactions can be denominated in smaller sub-units of a bitcoin, such as bits – there are 1,000,000
bits in 1 bitcoin. Bitcoins can be divided up to 8 decimal places (0.000 000 01) and potentially even smaller
units if that is ever required in the future as the average transaction size decreases.

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The deflationary spiral theory says that if prices are expected to fall, people will move purchases into the future to
benefit from the lower prices. That fall in demand will in turn cause merchants to lower their prices to try and
stimulate demand, making the problem worse and leading to an economic depression.

Although this theory is a popular way to justify inflation among central bankers, it does not appear to always hold
true and is considered controversial amongst economists. Consumer electronics is one example of a market
where prices constantly fall but which is not in depression. Similarly, the value of bitcoins has risen over time and
yet, the size of the Bitcoin economy has also grown dramatically along with it. Because both the value of the
currency and the size of its economy started at zero in 2009, Bitcoin is a counterexample to the theory showing
that it must sometimes be wrong.

Notwithstanding this, Bitcoin is not designed to be a deflationary currency. It is more accurate to say Bitcoin is
intended to inflate in its early years and become stable in its later years. The only time the quantity of bitcoins in
circulation will drop is if people carelessly lose their wallets by failing to make backups. With a stable monetary
base and a stable economy, the value of the currency should remain the same.

Isn’t speculation and volatility a problem for Bitcoin?

This is a chicken and egg situation. For bitcoin’s price to stabilize, a large-scale economy needs to develop with
more businesses and users. For a large-scale economy to develop, businesses and users will seek price stability.

Fortunately, volatility does not affect the main benefits of Bitcoin as a payment system to transfer money from
point A to point B. It is possible for businesses to convert bitcoin payments to their local currency instantly,
allowing them to profit from the advantages of Bitcoin without being subjected to price fluctuations. Since Bitcoin
offers many useful and unique features and properties, many users choose to use Bitcoin. With such solutions
and incentives, it is possible that Bitcoin will mature and develop to a degree where price volatility will become
limited.

What if someone bought up all the existing bitcoins?

Only a fraction of bitcoins issued to date is found on the exchange markets for sale. Bitcoin markets are
competitive, meaning the price of a bitcoin will rise or fall depending on supply and demand. Additionally, new
bitcoins will continue to be issued for decades to come. Therefore, even the most determined buyer could not buy
all the bitcoins in existence. This situation isn’t to suggest, however, that the markets aren’t vulnerable to price
manipulation; it still doesn’t take significant amounts of money to move the market price up or down, and thus
Bitcoin remains a volatile asset thus far.

What if someone creates a better digital currency?

That can happen. For now, Bitcoin remains by far the most popular decentralized virtual currency, but there can
be no guarantee that it will retain that position. There is already a set of alternative currencies inspired by Bitcoin.
It is however probably correct to assume that significant improvements would be required for a new currency to
overtake Bitcoin in terms of established market, even though this remains unpredictable. Bitcoin could also
conceivably adopt improvements of a competing currency so long as it doesn’t change fundamental parts of the
protocol.

THE ULTIMATE GUIDE TO BITCOIN: Investment For Canadians in 2021 05

Key Points

A transaction is a transfer of value between Bitcoin wallets that gets included in the
blockchain.

All transactions are broadcast to the network and usually begin to be confirmed within 10-
20 minutes, through a process called mining.

Bitcoin vs Gold

Did you know that the price of Bitcoin could reach $250,000 in the next few years? Considering how it
performed in the early part of 2021, it’s entirely possible!

Traditional investors and big institutional players alike have begun to take notice.

For example, the world’s largest investment firm, BlackRock. In an interview with CNBC, BlackRock’s Chief
Investment Officer, Rick Rieder said Bitcoin “is here to stay,” and that it could replace gold to a large extent —
resulting in a significant price surge to $250,000 even if Bitcoin only reaches half of gold’s current market
capitalization.

Even established investment banks like JPMorgan, which were once Bitcoin’s biggest enemy, have changed
their tune and set price targets of $146,000 per bitcoin by the end of this year.

The calculation is simple:

Gold currently has a market capitalization of $11.7 Trillion ($11,700 Billion), while Bitcoin, which is still in the
hundreds of billions, doesn’t even come close… yet…

Even if Bitcoin only reaches $5 trillion — less than half of gold’s current market cap— it puts Bitcoin well above
the $250,000 line, and it can still go a lot higher from there.

Though the price has slipped a little, there’s an upside. Now might be your last chance to buy in before the next
digital “gold rush”!

So what are you waiting for?

THE ULTIMATE GUIDE TO BITCOIN: Investment For Canadians in 2021 06

Our Vision

At Decentral Capital, we believe everyone should have the opportunity to be part of the future. Our mission is to
help individual investors and businesses navigate through digital currency investments and to help bridge the
gap between investors and the world of high-growth blockchain technology. We provide our clients
unparalleled education and propriety market commentary and forecasts. Our goal is to provide investors
enhanced returns above and beyond investing in the traditional market.

Products & Services

Professionally Managed Bitcoin and/or Ethereum using our proprietary trading strategy with
a track record of outperforming a buy and hold approach.
Proprietary Market Research, Forecast, and updates.
Set-up & Management of Cold and/or Hot Wallet (if desired).
Initial Investment as well as Recurring Monthly Investment Savings Plan (PAD).
Investor Support: Our team can be accessed through phone, email, chat, or via Zoom.
Paperless Account Opening and Funding via Pre-Authorized Debit, Paypal, or Wire Transfer.
Weekly Investment Performance Summary
Investor Welcome Package
Client Referral Program

Security & Transparency

At Decentral Capital our promise to each client is to provide Transparency. Education. Expertise.

Our platform is fully secure and equipped with the most secure technology on the market today. Our services
and investments are Canadian government regulated under strict guidelines under FINTRAC (Financial
Transactions and Reports Analysis Centre Of Canada).

FINTRAC Registration: M20755902

THE ULTIMATE GUIDE TO BITCOIN: Investment For Canadians in 2021 07

The first step is to contact us via email or using our contact form on our website. In the next steps we would set
up a phone or zoom call meeting to answer any questions you may have and describe our services in further
detail to you.

If you are convinced that we are a good fit for you and your money, we will send a service client agreement and
arrange a method of depositing funds into your crypto account. We also offer a recurring deposit system to
build wealth over a long period of time. Our goal is to build wealth for your and subsequent generations after.
We look forward to hearing from you!

Eric Kasanowski Rocco Cicciarella Sean Kelly

The digital money

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