Why You Need to Own Bitcoin (at least a little)

There is something sweeping the world right now, something people are going to look back on thousands of years from now (if humanity still exists) as a critical development in the evolution of the human species on par with the invention of agriculture and systems of written language and potentially even language itself.

Obviously, given the scope of this website, the thing that I’m talking about is Bitcoin. The implications of Bitcoin are hard to understand because it is the rarest of things — a truly novel invention. It is so much more than “money for the internet” or a “digital currency”. Those monikers do justice to Facebook credits or WoW gold, but Bitcoin is a different beast. It is a radically disruptive technology that has just begun to shake the foundations of human society. It is for money what the internet is for information. It is economic freedom for the masses on a level unimaginable before its creation, and as it proliferates, it will ignite a surge of innovation and prosperity unprecedented in human history.

You are going to hear that word “unprecedented” a lot in relation to Bitcoin in the coming years.

In case you couldn’t tell, I am more than slightly bullish on Bitcoin. Actually at this stage in the game, I think it is nearly impossible to be too bullish on Bitcoin. You know you are beginning to understand Bitcoin when your eyes glaze over in awe and your projection of the future shifts from a dingy extension of the stagnant present to an ocean of limitless possibilities. This is our new internet boom and it will probably be so much more.

If you are a True Believer like myself you are probably nodding your head at the statements I’ve just made. Now stop reading this blog and get to converting new Believers. We need boots on the ground, Soldier! Your BTC will never appreciate without them.

My intention with writing this particular post is to appeal to the skeptics, the people who aren’t quite sold on the Bitcoin just yet. I don’t blame you folks. Bitcoin is far from an easy thing to understand, It is new and strange and there are a lot of moving parts. “Peer to peer network”. “Protocol”. “Miners”. “Cryptography”. It’s a lot to handle, and in truth, most of its supporters don’t fully understand it either. As the media will tell you, they buy bitcoins because of frighteningly abnormal political affiliations like “anarchist” or “libertarian” which are generally euphemisms for “hates the government”.

Here at Winning Bitcoin we don’t hate ol’ USG. Mainly we feel kind of sorry for her. It’s painful to watch at times, to see her lurching around, bloated and drunk and obviously past her prime, completely oblivious to the writing on the wall. Or maybe she isn’t oblivious. It doesn’t actually matter, The fuse has already been lit and it’s one of those damn water proof ones. It’s just a matter of time until this puppy blows. I expect we’ll see some flailing, A last ditch attempt to clutch monetary power. That’s when you’ll know that the real fireworks are starting. What happens if USG shoots Bitcoin in the head, but Bitcoin doesn’t die?

That’s just one element of the brilliance of Bitcoin. It doesn’t have a head. Or it has many heads. I’m not really sure.

But where were we? Oh yes, back to the skeptics. I am going to assume that you are not a believer and that you are potentially hostile to Bitcoin. I’m not going to try to explain Bitcoin to you like a five year old. We already have CNBC for that. If you’d like to read up on the technicals of Bitcoin this is a good explanation. If you aren’t in the mood to absorb obscure cryptographic concepts, this guy has some good videos. As always, Google is your friend.

In truth, you don’t really need to understand Bitcoin. All you need to understand is your own self interest. The reason everyone should own Bitcoin is upside. Personal greed, pure and simple. The most potent motivation that has ever existed. You need to own bitcoins because, if it works, a 1000X return is a realistic scenario from current price levels. If it doesn’t work, well, the most you can lose is 100% of what you invested.

But its not going to work! I can hear you screaming. Well, maybe, probably, it won’t. But let’s do some math on this one. Even if the chance of Bitcoin succeeding is only 1%, if you invest $100 you have a 1% chance of earning $100,000 and a 99% chance of earning zero. The expected return on this investment, factoring in both probabilities, is $1000. That is a 10X return on your initial $100 dollar investment. So yea, you might lose, but you might win. A lot. The laws of maths are in your favor on this one.

The second protest I anticipate is that $1,000,000 USD is not a realistic valuation. To this I would counter that $1 million plus, and zero, are the only realistic valuations on an extended timeline. Either this thing dies or it takes over the world. To give some context to that number, if the same number of dollars were pumped into Bitcoin as are currently pumped into gold, the price would be 1 BTC = $400,000. And bitcoins are like a billion times more useful than gold! There is a lot of money in the world, mind boggling amounts of it, and if a portion of it flows into Bitcoin that is commensurate with the value proposition of this remarkable new technology, $1,000,000 per BTC may be far too low. Bitcoin, if it succeeds, is destined to swim in the same water as today’s major currencies and asset classes, and the value of those is measured in trillions.

A final note. Bitcoin is a network. Every additional person that buys bitcoins adds value to the network and increases the value of their investment. How cool is that! The very act of investing makes your investment more likely to succeed.

Ok, so now the usual caveats. Don’t risk money on Bitcoin that you can’t afford to lose. Yea, yea, it’s really risky, no one knows what’s going to happen, etc. If you get burned on this one, its your own fault, so don’t go betting on Bitcoin before you pay the electric bill — that could make them rather hard to use. I’m just trying to do you a favor by laying out the facts of this proposition for you. It can be a loser for sure, but it can also be hell of a winner. Like the type of winner the world has never seen before. Some might even call it unprecedented. So why not dip your toe in? You know, like maybe $20? I would say 1-2% of your savings is not unreasonable. Just think about it. And maybe learn a bit more about Bitcoin. The truth is that there are way better reasons than financial gain to purchase a bit of BTC. This is the future of the humanity we’re talking about. It’s going to happen fast, possibly incredibly fast, and you’re gonna feel bad if you miss out.

So anyways, think about it. In other posts I’m going to cover the practical aspects of Bitcoin ownership to give you an idea of how to make a move into this exciting opportunity, as well as other fascinating aspects of the technological and economic implications of Bitcoin.

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About Based John 11

https://twitter.com/basedjohn11
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