Developing The Right Attitude Towards Bitcoin
There are many different ways of looking at Bitcoin. Some people think it is a scam or a Ponzi scheme or something like that. Others see it as the only way for ordinary people to take control of their financial capital. There are others who think Bitcoin is a tool for opportunistic traders to make astronomical amounts of money to the detriment of large numbers of inexperienced investors. One thing that seems to be universally regarded as the reason why anybody should invest in Bitcoin is the ability of the investors to gain monetary profits. However, Bitcoin is more than just another financial instrument to be used like other instruments. Bitcoin promises financial freedom to random people who have become too much reliant on central banks and governments. Everyday that we continue using fiat money we are participating in and helping the perpetuation of an unfair financial system that is the current world economy. In order to understand the true value of Bitcoin we have to think deeply about what it offers regular people. You don't have to be rich to buy some sats. All it takes to invest in Bitcoin is a few dollars that anybody could spare.
The recent occurrences in the crypto world has had a significant effect on the price of Bitcoin. Just a few days ago bitcoin's price was as high as twenty five thousand dollars. Now, it is closer to a mere twenty thousand dollars. Those who can fully understand Bitcoin's potential as a universally sought after currency that is secure and reliable don't mind whether it is currently sold for 20k or 25k. They know that ultimately it is fallacious to denominate bitcoin's price in any fiat currency. It doesn't matter for them whether the amount of bitcoin they are holding is equal to 100 thousand dollars or just 10 thousand dollars because they know that Bitcoin assets don't derive their value from any sort of valuable thing outside of the Bitcoin Network. However, for those of us who are new to the idea of Bitcoin, this dip is a good opportunity to hop in the Bitcoin train while the ticket prices are lower than they have been in a few weeks. Once a new investor buys some Bitcoin they normally hodl it no matter how drastically its "price" changes. True hodlers ignore the "bitcoin price" represented in fiat currencies because to them those numbers are just that: numbers.
To true bitcoin hodlers their Bitcoin assets' value isn't constantly changing as some might believe it is. In order to understand this point better I think you should pay attention to this analogy. Hundreds of years ago, before gold was popular as money, other forms of money existed that were usually shells of cowries. Now imagine, if you can, that in those ancient times someone would denominate the value of gold bars in cowry shells. What would the people of those times think of gold? They would have thought it was a useless metal that would go out of circulation sooner or later. I can imagine that if in those days you had tried to convince someone of the true value of gold and of how much better it was than cowry shells you would have been mocked as a nerd who doesn't understand economics very well. However, after just a little time cowry shells and other forms of shell money went out of circulation because better forms of money were being adopted. The problem with new things is that they might need a little time to be accepted by the masses. However, once adopted, Bitcoin is highly unlikely to be replaced by any other currency, whether crypto or otherwise.
The problem with fiat currency is that it can be manipulated by central entities. This doesn't mean that all fiat currencies in the world are being manipulated. In fact, that is not happening. The real problem is that they can theoretically be manipulated so it doesn't really matter whether there are manipulations right now or not. The Bitcoin Network, being wholly decentralized, removes the possibility of any central party having unfairly high control over it. This takes us to the original idea behind this article, which is developing the correct attitude towards Bitcoin. Human nature isn't perfect but that doesn't mean that each of us has to think only about maximizing his or her individual profit to the detriment of our less advantaged fellow human beings. When thinking about investing in Bitcoin, it is important to keep in mind that whether we make profits or suffer losses we are at least helping the emergence of a better economic era of independence for individuals. When we see the investment in that light, potential financial losses or gains seem to us inconsequential and transitory. The larger picture that spans hundreds of years and the whole world is so big that in its vast expanse we are merely a dot.
The way we see Bitcoin should not be as another impracticable internet rage that we neither like nor care to understand. It is not easy to distinguish true gems from fake jewels but if you are fortunate enough to do so you will make the right decisions. In the crowded crypto market new shiny objects are abundant but Bitcoin remains the choice of the doyens of this market. There must be a reason why it is by far the most important crypto!
Taking a step back from the unnatural assumptions that prevail among people of this day and age, let's take a look at Bitcoin not as a tool to become rich overnight, but as a frontier to a better system of economy for the world. Let's take the time to comprehend the true benefits of Bitcoin not as a ladder to achieve affluence but as a way for all the people to regain their financial independence.
I am not a financial advisor. This article was written for entertainment purposes only. Investments are usually risky especially in cryptocurrencies. I don't endorse any token or NFT. Consult a professional financial advisor before making investment-related decisions.