Today is December 15, 2018. I'd like to share with you some information about Bitcoin in a 3-part post. The past, present and the future of Bitcoin (BTC). To be clear, I'm talking about the original Bitcoin (BTC). No other. These are just my opinions and observations and not financial advice.
Part 1 of 3
I came to know about BTC because of a news story about Silkroad. I read as much as I could about BTC online and then attended a local get-together of folks in the space. Most of them were already initiated and some were quite technical. I saw a raspberry pi miner there for the first time and one person was able to retire thanks to BTC.
Advice from others in that meeting that proved to be true:
- To accumulate more BTC was the ultimate goal. Even now, in 2018, alternative coins' exchange rate primarily follow BTC and no other decentralized peer-to-peer blockchain application has proven to be as widely used.
- The best way for a regular person to acquire BTC was to either buy it or earn it through goods and services. Mining was ultimately a negative return on investment.
- Protect your private key at all times. Without it, you don't actually own your BTC. This meant that one should not store BTC in exchanges.
I left that meeting with some sense that it wasn't a complete scam. I bought my first Bitcoin (a fractional amount) in 2014. I used Coinbase to make my first Bitcoin purchase and it was easy once you set up your account. Coinbase has been around for a while now and it's by far the easiest and safest way to get into buying and selling Bitcoin. Here's the price of BTC in December of 2014. I then bought more over a period of time. I learned that it's better not to talk about BTC with others because:
- To talk about speculation would not do me any good. If the price of BTC went down, then others would hate me for talking them into it. And it would be no fun to hear nocoiners say things like, "Hey, so how's that bitcoin thing working out for ya?" If others knew and the price went up, they would hate me for being successful or lucky. It's just human nature: we hate it when others become successful and we blame others when things go badly for us. And it's impossible to accurately predict the future.
Nothing really happened after that. And then in late 2017, BTC reached an all-time-high of over $19,000.
That's my quick trip down memory lane. Today, BTC is around $3,200. On my next post, I'd like to talk about what I think about BTC now. In my third post, I'd like to talk about what I think will happen in the future.