How to Buy Bitcoin in New Zealand
You may have arrived at this page searching for how to buy Bitcoin in New Zealand. I'm not sure when you are reading this, but I am writing it on Waitangi Day, 2024 (the value of 1 bitcoin today is just over $70,000NZD).
Before considering purchasing Bitcoin it's crucial to Do Your Own Research to understand why it is important.
Perhaps you found your way here after reading a news article, hearing about Bitcoin from a friend, or maybe you are simply more curious about how money works.
Have you ever felt skeptical about the rising cost of living in New Zealand despite assurances from the media and the Government? It's a sentiment many share. Perhaps you've encountered contradictory phrases like:
"Inflation is cooling."
"Changing climate pushes super markets to hike prices."
"Consumer Price Index expected to go down."
"Families still feeling the pinch of cost of living crisis."
"New Zealand is doing okay."
"Putin, Gaza, Covid, Gabrielle, are to blame for increased grocery prices."
It can all be very confusing, but don’t be misled, inflation and prices are not going down and unfortunately they never will.
The Connection Between Money, Inflation, And Government In New Zealand
Before buying the asset that is Bitcoin it is important to understand the fundamental mechanics of how money works and how it has been interfered with and printed by the New Zealand Government so much as to cause the current cost of living crisis that every kiwi is feeling.
It is not because of foreign wars, climate change, Covid or any of that.
Inflation is always and everywhere caused by the Government printing money – Here is what Nobel Memorial-prize wining economist Milton Friedman had to say.
Once you understand this you will get why Bitcoin matters.
With an appreciation for the gravity of the situation and an understanding of what money is you can approach learning about Bitcoin with the skills and attitude that will ensure you can successfully use it to store your value in an inflation-proof way.
Some Learning Resources To Start With
To keep things simple I just have just two sets of resources for you. There is a lot here, but throw a dart at any of the articles on these pages and start reading:
Getting Started with Bitcoin - Jameson Lopp
You can also check out the list of episodes on The Transformation of Value Podcast. Just pick any one and go from there.
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I understand that diving into extensive reading may seem daunting. But it is all extremely valuable and there is an advantage in learning these things today instead of tomorrow.
Of all the people I have shared Bitcoin with, the best outcomes have come from those who have done their own research on Bitcoin, starting off with maybe just a few hours to get a foundational base of knowledge. Then they have gone on to do more research to equip themselves to purchase the asset that is Bitcoin with the confidence that they know what they are getting into.
Once you have done the work to genuinely try and engage and understand Bitcoin a little light will go on 💡 and you will understand what all the fuss is about and why Bitcoin is so important.
You may begin accumulating Bitcoin knowledge and find yourself listening to podcasts and watching videos on YouTube about macro-economics, fiat money, how the energy industry is being transformed by Bitcoin miners, and circular Bitcoin economies that are forming in Latin America. You might learn about the way the Bitcoin network works and how the U.S. Federal Reserve manipulates global money markets (and how the Reserve Bank of New Zealand does the same thing here). You may become interested in setting up your own Bitcoin node, researching open-source wallets, zapping tiny fractions of a Bitcoin to friends on the other side of the world with zero fees and no middlemen.
You will likely find yourself compelled to learn more and educate yourself about the technological and monetary revolution of Bitcoin that is currently taking place.
Ultimately you may not do all or some of these things either and that is okay, but at the very least you will understand why Bitcoiners do them.
Some Questions To Think About
It is my view that there are a few Bitcoin questions that you should be able to give a brief answer to, demonstrating to yourself that you have done your own research and understand what you are getting into. If you are not 100% sure that is okay too, but here are some questions to think about:
- What is inflation and who causes it?
- Why is it important to self-custody your Bitcoin?
- What are the units that fractions of Bitcoin are measured in, and how many are there per Bitcoin?
- What are the differences between the New Zealand Dollar and Bitcoin?
- What is a seed phrase?
- What are the dangers of using other cryptocurrencies that are not Bitcoin?
- What gives Bitcoin its value?
This Bitcoin thing is a long-term game. At the very least, you need to expect to hold your Bitcoin for 4 years to see any material gain in NZD value. It may go “up” far sooner than that, but it may also go "down". It may even "crash" and be declared "dead" by commentators on Radio New Zealand or one of those economic talking heads they get in for a soundbite.
None of that matters though, it is all noise. Only the secure long-term self custody of your Bitcoin is important.
Put another way, Bitcoin is where you put your money so that it does not melt away your purchasing power like it does if you simply hold it in New Zealand Dollars.
What It Really Means
Now that you have done a bit of research (maybe you have even read a book or three), hopefully you also understand how Bitcoin is not just another “financial asset” to sit alongside your Kiwisaver, your ANZ Term Deposit, or your Sharesies portfolio.
Bitcoin is a new financial system that is being built around the world. It is a global, permissionless money that anyone can participate in. It has a fixed supply and cannot be printed by a loose-cannon government or confiscated by a tyrant. it cannot be inflated away by Grant Robertson, Nicola Willis, or Adrian Orr.
If you have your Bitcoin (properly secured) it is yours and only yours. No one can take it from you.
The legacy financial system, the Australian banks pretending to be Kiwi, interest rates being hiked, slashed, dashed and mashed, of inflation and recessions engineered by the Reserve Bank of New Zealand and a cost of living crisis is all just that: legacy.
The fact that you are reading this page means you are early, just like the internet in 1993: Most people didn’t know about it, most people didn’t care, but eventually they would all be using it.
Upskill yourself with the knowledge of Bitcoin, learn why it is important, then you will know what you need to do.
If you have any questions please get in touch.
Cody Ellingham
