A few years ago, Silicon Valley in San Francisco came under the influence of a new, mysterious thing known as Bitcoin. It swept away the tech enthusiasts off their feet. There were a wide set of rumors that Bitcoin was virtual money, invented by a pseudonymous math stalwart named Satoshi Nakamoto, who would later stir up the structure of modern finance and render government-powered currency antiquated.
To understand the phenomenon better, I once bought a single Bitcoin long time back, which then involved a strenuous labor-intensive process, where I had to go to CVS and use MoneyGram to wire dollar value of a Bitcoin to a crypto-currency exchange. After a month or so, I decided to sell it off for a slight loss, thoroughly convinced that this virtual money is nothing but just a passing fad.
Today, cryptomania is revolutionizing the world! The Bitcoin that I sold at a loss several years ago would have fetched me more than tenfold than what I had shelled out that time – hey boy, I did blow it! Even last week itself, Coinbase, a top notch consumer trading podium for Bitcoin briefly crashed due to a huge influx of traffic, and similar instances has been reported from Chicago Board Options Exchange that trades on this cryptocurrency. Yet amidst all this ever-increasing hype, the experts prefer to warn about a possible Bitcoin bubble ready to burst, but before that we hope it creates a place of its own to survive brilliantly even in an event of crash.
But, what made me so pessimistic about virtual money? Often, I wondered about it, and rounded up at least three wrong assumptions I conferred. And they are:
I presumed Bitcoin is up for everyday use
In its early days, it was presumed that this cryptocurrency would be used to buy food, pay rent and expend on other day-to-day purchases. With a vision to introduce Bitcoin in mainstream, several Bitcoin ATMs were set up, but today hardly anyone actually spends Bitcoin on buying goods and services. While few prefer to use it as a currency, most of the people want to treat it as an investable security option, just like gold or silver.
I thought Blockchain would shroud Bitcoin in future
Previously, there were strong rumors that Bitcoin would just act like its predecessor technology, Blockchain – an incredible ledger system that keeps a track of all cryptocurrency transactions, while allowing them to work independently without reporting to a central authority. Though Blockchain had some hope, but Bitcoin was thought to fade away with time.
Now, Blockchain is weaving frenzy, but that didn’t deter the enormous hype of Bitcoin – in fact it has sped up the process.
I expected that Bitcoin’s excessive volatility would be a major damper
In the beginning, when Bitcoin’s price was swinging like a pendulum from $100 to $200, sometimes within a few days, I used to ask myself, why would anyone sign up for such a roller coaster ride?! I was of the idea people wanted stability in money, but now I have come to know that people adore the thrill that unstable monetary instruments bring in. For an instance, think about casinos, people love to flock in there and gamble! The same is with Bitcoin – the spectacular rise of this incredible cryptocurrency amidst so much social media galore encourages bandwagon behavior, which compelled enthusiastic speculators to bet big on this currency in the hope of striking a great luck before it’s too late to make big money.
With that, I would like to say Bitcoin has ushered us in a transformational epoch of cryptocurrency, and while I still rummage through the boons and banes, you go to hit the maximum out of it.
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