It was my senior year of senior high school and one of our teachers called us in a room filled with new computers. We were instructed to sit back and “surf the web.”
“Surf the web?” What did that even mean? At that time I did so not live anywhere close to the beach and couldn’t really understand this concept of web surfing. It had been clunky and pages were slow to load. There is no way that this would be useful. I went back to the library later that day during study hall and read the newspaper. You know, the people you see in hotel lobbies and occasionally outside of restaurants.
All kidding aside, when people are used to doing something a certain way for so long it truly becomes part of who they are. I have operations management experience and every time I attempted to change the process or method of doing something to make it better I was typically met with resistance.
Some people are far more married to certain ideologies than others. We view it everywhere. I view it with the older generation at church not liking the newer music. Or, for instance, the National League baseball purists despising the thought of the designated hitter. Think about even simple things such as when Facebook or Twitter changes an individual interface? Don’t wreck havoc on my timeline! LOL.
Why then should it be any different for Bitcoin or any cryptocurrency? I talk to people every business day that are educated and successful yet still can’t wrap their heads around cryptocurrency. To me it is like explaining how exactly to browse the net to people in 1994.
For centuries folks have had it ingrained in their brains that money issued by the federal government meant it had value.
Fiat currency (money issued by way of a government – USD, Euro, Ruble, etc) has this connotation behind it that as the government printed this it Should be of value. While it holds true that our dollars have value, most people think it is since it is backed by something. As a society we have decided that shiny minerals we dig up from the ground are “valuable” and for that reason so is our money.
When economies are humming along and governments aren’t overbearing and folks have a relative “trust” in them then yes, fiat currency works quite well. What happens whenever we tip that scale and things don’t go so well? Economists have varying opinions on that, but most of the time governing bodies will step in and make an effort to stimulate the economy. This is done by manipulating the economy via tactics such as lowering interest rates or quantitative easing. Governments want to turn on the printing press when things go bad.
These types of scenarios can cause distrust, or far worse. Recessions can turn into even bigger problems such as for example price controls or food shortages. Just ask the people of Venezuela that are protesting in the streets on a regular basis. The reason being their government backed Bolivar now has seen triple digit inflation and it’s not even worth the paper it’s printed on. Let that sink in.
The distrust of centralized banks, governments and corporations has led to people seeking financial refuge elsewhere. It usually is incredibly difficult and costly to move money around the world aswell. I used to control banks and the procedure was tedious and required many eyeballs on it for verification purposes.
Blockchain technology is changing all that. It is completely decentralized meaning that nobody President, Dictator, government or corporation can control it. The online digital accounting ledger known as the blockchain maintains trust and multiple persons nearly instantly verifying transactions for every other. People are financially incentivised to take action. It is a genius peer to peer operation that depends on people’s greed to verify each transaction. Due to this, blockchain transactions may also be the safest & most secure transactions ever invented.
What the internet did for information, blockchain technology does for transactions. Bitcoin is not backed by any shiny material in the bottom, but by something far greater. The lack of rely upon traditional fiat currency is causing people from all over the world to move their money into cryptocurrencies. It is just a secure and relatively easy method of payment. I can send Bitcoin to anyone on the planet for almost no fee at all plus they receive it instantaneously. They are able to keep it in Bitcoin or they can instantly trade it on an exchange back to the local currency of these choice.
Not just that, but merchants around the world are starting to get sucked in and many are actually accepting Bitcoin as a method of payment themselves. If I owned a store, I would be BEGGING visitors to pay me in Bitcoin. Those who accepted Bitcoin because the start of 2017 have finally TRIPLED their profit.
And it is only starting out. Right now only about 1% of the populace is confident in conducting regular transactions with Bitcoin. Imagine when that number moves to 3%. Then to 10%.
What many people don’t realize is that the more folks that jump into cryptocurrency the more value it will have. This is because the volume of Bitcoin that will ever be created is FINITE. And you also can’t have a Ponzi scheme with a finite resource. That number is actually 21,000,000. That’s it. Once that occurs there will never be another Bitcoin created again.