So Bitcoin prices are rising again, and you know what that means – everyone and their mom is asking me if it’s the right time to invest again in the virtual currency that is taking over the world. *
So Bitcoin prices are rising again, and you know what that means – everyone and their mom is asking me if it’s the right time to invest again in the virtual currency that is taking over the world. Which is great and all, but if I knew how to get rich off just trading, I wouldn’t be writing this blog currently and riding off on a yacht in the Caribbean.
This is nothing new, as Bitcoin has been around for several years at this point – yet there is still a massive amount of debate around it with no clear answers as to its utility and staying power. As a commoner, I have been waiting for proclaimed experts on all sides to give me their expert opinion on Bitcoin (and more importantly Dogecoin for the meme potential), but the debate around it remains as fierce as ever.
The truth is, relative to the few fervent supporters of Bitcoin who see it as a store of value, its decentralized properties, and limited supply – most other people just see it as a vehicle for getting a return on their cold hard cash. Is there some intrinsic value as a technology or as a medium of exchange? Somewhat, although not as much relative to Ethereum and its usefulness in DeFi with smart contracts. As a medium of exchange, I don’t see people going out to buy their Christmas presents in Bitcoin yet, unfortunately.
The lack of utility of Bitcoin is the biggest argument in my opinion. Yet the same argument exists against currencies such as gold. Sure, gold looks nice and you can wear it so that you can look like your favorite influencer, but at the same time, we have to keep in mind that it is just a shiny piece of metal. There is value in gold because of the perceived value of gold. Likewise, there is value in Bitcoin because of its perceived value and what it represents to the community of people who hold on to it.
There exists a whole ecosystem of people that appreciate Bitcoin and what it represents for individual rights and decentralization. In the same way that people associate Apple with luxury and status, people value Bitcoin for the ideas that it represents. As long as people believe that to be the case – Bitcoin is going to be here to stay for a long time (barring some extenuating circumstances). Which is great and all for you financial revolutionaries and all, but I am just happy that I keep trading Dogecoin for the memes.
