Wednesday, January 28, 2015

Why You Shouldn't Be Buying Bitcoin, but Certainly be Paying Attention

For the past two years, I have been immersing myself in the intriguing world that is Bitcoin. I had bought one for $20 back in February of 2013; that one Bitcoin quickly shot to $200, then $300, then all the way up to $1000 in the summer of that year. Nowadays, the price is hovering around $200 again. I never sold (except bits here and there to cover bills), and never really bought much more. Really, this is besides the point. Bitcoin is not an 'investment' per se.

Bitcoin is also not, contrary to what Reddit and every other 'Bitcoin News' source will tell you, a payment system. It will not revolutionize the world in the way 99% of bitvangelists preach. People get excited when big companies like Microsoft and decide to accept it as a payment. This will never amount to anything. You will never see the day when the 'average joe' runs down to Starbucks and buys his latte with BTC.

Bitcoin is, simply, a store of value. It will never be anything more than that. However, you should not underestimate the importance of this fact. It is perhaps the best store of value this world will ever see. This is because of the magic of cryptography, and the fact that if you take the time to understand the technology behind it you can be sure that you, and only you, can touch your money. You just can't say that about any other store of value, be it a bank, gold or the USD cash in your wallet.

Sadly, the 'Core Bitcoin Developers' have been slowly driving this technology into the ground. The beauty of this is that it really doesn't matter. The 'protocol' is open-source, which means that people who do know what they are doing will pick up the slack and carry the torch. You just need to really be aware of who those people are and what 'version' you should be using. This is why I say not to be buying right now. It is near impossible for a 'newbie' to cut through this layer of obscurity. Hell, I barely know what I'm talking about now.

Keep your eyes on this though. I'm off to bed, but I've been meaning to make this post for a while now (months). I will try to write more on this in detail in the future.

In the next decade, I think we will see some interesting developments in this space. Keep your eyes to the skies.

- Magnetic Bran Flakes

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