Okay, this post is about as real as it gets. Don't get me wrong, I'm a believer in blockchain technology..but I've had some honest thoughts about Bitcoin and crypto and I want to share.
I first started trading Bitcoin/crypto last year...before the December madness (no, I didn't buy in at the top). I had no idea what crypto was and no idea what I was getting myself into. In 2017, you could throw money into just about any coin and come out on top. It was common, daily, to catch a 100% runner on Bittrex. Good times. I love to buy low, sell high. I'm a trader. I rode XRP from .25 cents to over $3.00. The hype was real. Did I really care about what Bitcoin stood for? No. I was playing for the money, like most.
Now, here we are...Bitcoin has been to $18,000 and now struggling to hold $6,000. A number of people thought they were going to become millionaires and they lost money; some in a very big way. People got burned and I think some are done. I also think people are scared: scared of regulation, theft, and losing money. All of these are valid concerns. But I've had other thoughts. Thoughts I've only shared with a select few but now want to put them down in writing so that we may be able to understand what people on the "outside" of crypto might be thinking.
I am not a Bitcoin purist. I'll admit it. Am I REALLY concerned about getting away from banks and the general banking system? Probably not. If people are honest, most aren't that concerned. I use my Visa card and my local bank regularly without blinking an eye. I trust my money is safe because of the FDIC protection. I think a good portion of people feel the same way. As long as someone is there to protect their money, they feel relatively safe. Here is where the true belief in Bitcoin/crypto comes in. Do people REALLY care about their privacy? I mean, Facebook, Twitter, Snapchat, and Instagram exist so that we can put our public lives out there: where we eat, who we are friends with, our birthdays, our family photos. Nothing is private..and we do it by choice. Why would we expect people to be so outraged about banking and keeping things private? We've willingly given that away. Are we so concerned about our privacy that we are willing to give up our bank accounts and trust in Bitcoin? No. Not yet at least.
I am keeping this blog real. It's been a process to go through my thoughts and I've had to be honest with myself. Remember, I am not a long time hodler of crypto or a blockchain expert. I am, however, a woman who doesn't follow anything blindly. I question EVERYTHING. It needs to make sense to me.
Value. What is the true value of Bitcoin? I mean, really. Who determines it? It's worth lies in what people are willing to pay for it..period. As we saw in December, people were willing to pay $16,000...now they are willing to pay $6,000. Bitcoin needs to find a value.
Bitcoin doesn't have a face. I know this sounds strange, but there is a name associated with Bitcoin, and a symbol, but not a face. We all know that Bitcoin Cash, Ripple, Litecoin and others have a face; someone to identify the coin/token with. I can go to a website and get updates and there is generally a person or people communicating to the investors. Bitcoin lacks that. I don't really know who the developers are or who is in charge of it. The Bitcoin website (bitcoin.org) is rarely updated. I think that concerns some people.
Adoption. Will Bitcoin/crypto ever be widely adopted like traditional money? It's a relatively new, potentially disruptive process that goes against everything that we know. Do we really think banks are going to allow something to come in and replace it? It has definitely gotten the attention of the banks and the government, but where will it fit in? Adoption is a must for crypto, but with adoption comes regulation.
All of this being said, I'm not bashing Bitcoin or crypto. I am in this for the long haul. I like to think things out and have conversation. I am looking years down the road for the growth. I've come to the conclusion that I will probably not benefit from this, but my grandchildren may. And that brings up my final point. This is a generation of "me" and instant gratification. Does anyone really invest in anything anymore for the benefit of someone else? I'd like to think yes, but sadly the number of people dropping out of crypto recently because they didn't get their lambo says something different. I am excited to be part of this new crypto world to see where it takes us. Even if Bitcoin goes to $100, I will be okay because this journey of learning is amazing.