03 September 2013

My Stance On Bitcoin

Bitcoin Logo Big


The Story So Far
 
The first time I read anything about Bitcoin was back in late 2009. Don’t thought much of it at the time as it apparently was only a paper. That’s not true of course. But I had read about many Digital Money or Digital Value Storage and Electronic Store of Value attempts before that.
 
All the way back to 1995 to the rest of the 90’s, where ideas of hypercards, USB smart keychains + programs and PCI cards + programs were the kinds of ideas been explored to create a good proposition for Digital Money. Then came the Web App ideas like eGold and Paypal that focused on distinct parts of the Digital Money proposition. Ultimately none of those evolved into being true digital money. Neither were the other abstractions than were more of a virtual currency like the Linden Dollar, WoW gold or EVE credit from a public side or financial electronic token ideas that were not just proprietary but also isolated and obscure.
 
So when I first read on it. I didn’t even bothered to read the actual Bitcoin Paper. Historic examples had me that jaded. Until I saw that Bitcoin was still around and evolving in 2010. Then, then I read the paper. I was skeptical but intrigued on how good the thinking behind it was. It covered many angles, it had many theories well fleshed. It simply was damn good. Which led me to just track its progress. It only really  started connecting with me in 2011 as I collected Bitcoin from faucets and random people that gave it away. In truth, my first Bitcoins were given to me for free as it is the case of many others.  Bitcoin then was also finally fleshed out. Trust and demand started to pick up and so did its utility online. Revealing the potential in it. Once 2012 arrived I was fully into it. I had purchased what I could which was very very hard since I am in Mexico City. Something that then led me to be very timid in how much I invested on it or how long I held on to what I had. Meaning I am not Bitcoin Rich at all. 
 
I will disclose that the profit I have got from Bitcoin so far is in the single-digit thousands of dollars since then. Something that is my fault because of getting discouraged by how hard I found it to purchase it back then in a trustworthy way. Leading me to avoid two chances at high risk. If I had taken the first one I would had made $100K+ USD. If I had taken the second one I would had made some tens of thousands. By the time I wanted to jump into it a third time it was too late. Do that soured me on Bitcoin? Not at all.  That, as with other things was not the main motivation on why Bitcoin interested me. For me it was all about the Technology of it and the principled ideas intrinsic to it. In a balanced and grounded way I may add.
 
While the most obvious question when it comes to any news coverage on Bitcoin is “What is Bitcoin?”, I still feel very much it continues to be badly answered and that the defacto answer is now a canned bland phrase. The same comes for when people make allegories comparing it to Napster or MySpace. Ignoring that the history of digital money and digital currecy is already deep enough to make such comparisons ridiculous. In this very post am aware I am still part of the problem. But i will make another post answering those basic questions and simplifying general explanations about Bitcoin without making the answers too boring nor too plain, or so I hope. As I like to be in the conversation when it comes to Bitcoin and Cryptocurrency. Something that also got me to jump at the chance of being one of the co-founders, co-owners and moderator in The main Google+ Bitcoin Community. Community that is also the one honored to be listed in Bitcoin.org.
 
The Point
 
When it comes to me personally. I am not interested in the hyperbole of Bitcoin Hype-Pumpers or the trollish negativity of those hell-bent against it. I fall in the middle of those spectrums and for me looking at the bigger picture is always essential. Zoom In and then Zoom out as many times needed. Only way to not lose perspective, objectivity and context.
 
The whole reason of this rant post is to simply lay out some my thoughts, my story and my perspective on Bitcoin. There are people that have suggested I only like it because of the speculation or simply didn’t really had any clear idea of where I stand on it and have been curious.
 
The point is to state that for one I am not polarized on it at all. I disagree in seeing Bitcoin as a Zero Sum Game.  I also disagree vehemently its only possible goal or finish line is to completely subvert other currencies or governments. Specially when it comes to the Top 10 ones.  Thoughts and perspectives that are just flat out misguided and a bit delusional because those spewing it lack a global thinking perspective and sensible amounts of common sense. As in my opinion, Bitcoin whole point is to be the first step to a truly useful form of digital money that can serve as a secondary or tertiary destination to store value, do payments, vote monetarily in a censor-free way synonymous to regular Fiat CASH that can transcend the physical limitations to it. It being the primary currency is only possible in the smallest countries or countries where the national currency loses most of its value every 20 years. But Bitcoin is and should be the option and choice to use for when you want to use or store your money like you do with cash anywhere in the world without it mattering if you are there or not.
 
The Punchline
 
Regardless of what happens with Bitcoin. It happened and it can only evolve and revolve if necessary. Just like other disruptive P2P tech, like, lets say BitTorrent. Literally and figuratively the buck don’t stops here. It is after all not just a currency. It is a commodity, it is a network design, a payment system and a platform.  A whole block of principled utilitarian technology for Money. It is a big deal.
 
Further Reading: What Is Bitcoin?

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4 comments :

paganknight said...

good read.

Avatar X said...

@paganknight Thank you. Glad you liked it.

Unknown said...

Hi Avatar. Thanks for sharing your perspective with me.

Avatar X said...

@Unknown My pleasure.

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