I could tell you all sorts of stuff about blockchains and decentralized currency and hype you up, but none of that stands close to the real reason bitcoin rules
I could go on and on about how much I love cryptocurrencies and all the reasons they are great, but the whole time there would be this one thing on the tip of my tongue: bitcoin only exists because people want it to.
I’m going to say that again, because big media seems to be working hard to convince people that bitcoin is a ponzi scheme, a scam, or a bubble at the very least, but the reality is that they are scared as heck because they can’t control it.
Bitcoin ONLY EXISTS because people want it to.
The real reason Bitcoin is spectacularly awesome isn’t because people have been scammed into thinking they need it, like any other typically useless product in our capitalist society. No, it’s actually quite the opposite of that. The reason bitcoin is happening is because it’s backed by investors, plain and simple. It’s a capitalist wet dream because, despite how easy it may seem to manipuate cryptocurrency markets at times, these markets are still completely controlled by supply and demand — in other word, bitcoin is true free market capitalism,., and the investors are not restricted to any laws or regulations.
Please read that again, because so many people seem to miss the point entirely about this beautifully crafted, here-to-stay digital currency.
The only reason bitcoin has value is because people have decided it is valuable. And you know what? That’s how everything is, so it’s not that crazy of a concept. It’s a simple supply and demand model and that’s probably why banks around the world are freaking out about how to handle it.
Bitcoin only exists because people have dedicated their entire lives to making it happen. And when I say “people” I mean a large array of investors around the globe, many BIG investors that foresee a future of $20,000 coins, but mostly many small investors like the average techie who thinks it’s just really freakin’ cool. But the point is that, once people put millions of dollars into buying equipment, buying or renting warehouse space, or in some cases running mining farms in the middle of the jungle, you have to ask yourself how desperate these people would be if bitcoin suddenly crashed. Soon afterwards, I hope, you’d realize that it just isn’t possible for it to completely crash since there are too many investors.
Investing in bitcoin isn’t like investing in the stock market. The stock market is backed by FIAT currency, by big banks, by countries and world economies, and I’m sure that makes it sound so solid and safe, but the reality is actually the opposite.
Because FIAT currency is centrally controlled, it means that the few people who control it can manipulate economies at will, and usually they do it through market regulations, but sometimes they manipulate schemes like the housing crisis of 2008, where they knew they would get bailed out by the government (i.e. the people).
However, that control is completely averted in the cryptocurrency economy, due to the nature of cryptocurrency in general. Bitcoin, as we all know, was developed to be decentralized and thus it is up to the community to make sure it exists via the proof-of-work concept, which is the basis of the blockchain, the ledger of all transactions in the bitcoin network. Without the support of the community, bitcoin transactions simply wouldn’t get completed and nobody would use the darn thing.
But they do.
And they are using the heck out of it.