WTF is a bitcoin? I’ve listened to podcasts, read articles online and just watched a documentary and I barely get it. I might be too stupid to get in on it or I’m not stupid enough.
Today I searched the term, “why should I buy bitcoin?” I didn’t really get any good answers. Most of what I read was telling me how bitcoin is better or differs from conventional currency. What I haven’t fully comprehended yet is why one would want to exchange $13,000 USD for 1 bitcoin. What am I going to do with this bitcoin?
For the most part you can’t do much with it right now. I think people are piling into bitcoin and other cryptocurrencies for speculative gain. It’s an exciting idea similar to 9/11 and moon landing conspiracies but as for now why would I use Bitcoin to pay for goods and services if I can use cash?
The supposed appeal of cryptocurrencies is that they’re a decentralized online currency that eliminates the need for a third party(banks, credit cards) to facilitate transactions. Being able to tell the banks to F-off might be nice but if you somehow lose your bitcoins from no fault of your own I think you’re screwed.
There’s people who stockpile gold as a hedge against cash and capital investments. Cryptocurrencies are like an online version of gold except they don’t have the backing of historic value and confidence. It could be the future. I’m only saying this because you never know. It sounds crazy but who knows. There’s smarter people than us who believe so. Everything seems to be going online and towards a cashless society.
Yesterday the value of a bitcoin was $12,000. Earlier today it was $13,000. I just stumbled across the current value and it’s $14,000. Just over a month ago a friend and I were talking about it and it was “worth” $5000. In 2015 it was in the $250 range. In July of 2010 it was like 6 cents. What this means is that some people have gotten really really rich and probably some time soon some people will be jumping off a bridge because they lost a ton of money. It could go up to $20,000 before that happens though. The feeling I get is that the craze is not near its end yet.
So your options today are a good used car or a bitcoin.