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What Keeps Bitcoin From Being A (Bigger) Part Of Our Future

I consider myself an enthusiast of technology. On many occasions, I’ve wildly speculated about emerging technology and expressed unapologetic excitement about certain trends. In general, I have the utmost respect and support for those who share this passion. I don’t always agree with their outlook or speculation, but I get where they’re coming from.

Then, there are Bitcoin enthusiasts. I’ll just come out and say I have mixed feelings about them.

Don’t get me wrong. I don’t want to diminish what a remarkable technology Bitcoin is. It is a complicated and, at times, confusing technology. Even the Wikipedia page only does so much to explain what it is, where it came from, and why it matters. That’s not surprising. There was plenty of confusion about the internet too when it first emerged.

While I don’t consider myself an enthusiast, Bitcoin has sparked my curiosity. I do sometimes look into major news stories and developments surrounding the technology. The fact that it has lasted over a decade and made some people legitimate millionaires is proof enough that Bitcoin has real, tangible value. Those who keep saying that Bitcoin is just a fad or will crash are becoming increasingly scarce.

I’m convinced that Bitcoin, and other cryptocurrencies like it, are here to stay. They’ve proven that they have value in an increasingly digital landscape. As the internet becomes more prevalent and accessible, their role will only grow. That being said, I’m not yet convinced Bitcoin’s role will go beyond a certain point.

Those who say Bitcoin is the future of money are likely talking in hyperbole.

Those who say Bitcoin and the blockchain are the most revolutionary technologies since email are also likely exaggerating.

I don’t doubt for a second that these people believe in what they’re saying. I just haven’t seen enough to warrant that kind of enthusiasm. The issue isn’t as much about the merits of the technology as it is about how it’s being used. I’m not just referring to its role in the illegal drug trade, either.

At the moment, Bitcoin is fairly accessible. If you have a smartphone and an internet connection, you can download a simple wallet for free. If you do a quick search for a Bitcoin ATM, you can purchase Bitcoins with the same ease you would when purchasing a gift card. It’s what you do after that where the issues arise.

What exactly can you buy with Bitcoin that you can’t buy more easily through other means? That’s not me being facetious. This is where I tend to diverge with Bitcoin enthusiasts. I understand that some major ecommerce sites accept Bitcoin, namely Overstock. I’m also aware that more and more retailers are accepting Bitcoin.

However, the only ones taking advantage of that option are those who go out of their way to use Bitcoin. For most people, especially those who aren’t as tech savvy, there just aren’t enough benefits to warrant the extra effort. On top of that, Bitcoin does have some lingering flaws that are hard to work around. Then again, you can say the same thing about traditional money.

None of that even begins to highlight the growing issues associated with mining Bitcoins.

Now, that could change. It’s not a certainty, but it is a possibility. Like any new tech, the issue isn’t always about whether or not it works. Bitcoin clearly works and it’s been working for nearly a decade. It’s whether or not there’s a “killer app” to entice ordinary people to go through the effort of learning about, acquiring, and using Bitcoin.

The problem is that, thanks to incidents like the Silk Road, the primary use of Bitcoin and cryptocurrencies like it have been for the purchase of drugs or other illicit services. Regardless of how you feel about the politics surrounding illegal drugs and services, that’s the reputation Bitcoin has. It’s just a way for criminals and their cohorts to operate.

That’s not a killer app. It’s also not sustainable.

In order for Bitcoin to play a bigger part in our future, it needs to have a good, meaningful use. It took cell phones decades to find that. Just being able to make phone calls, remember phone numbers, and occasionally host a game of solitaire wasn’t enough. Other apps like music, video chatting, and cameras had to get into the mix before the public and the market embraced them.

That’s what Bitcoin needs. I don’t claim to know what that entails. I think Bitcoin has to get to a point where using it is as simple as using a credit card or debit card. It also needs a particular use or product that will justify the physical and financial investment. That use also can’t be illegal. It’s no secret that the internet owes much of its early growth to the porn industry, but porn isn’t illegal.

Bitcoin, in my opinion, will need something bigger than porn. It might also need to wait until more parts of the world are connected to broadband internet. Maybe it involves voting, enforcing contracts, or the development of new peer-to-peer networks, such as Open Bazaar. I don’t know. I’m not smart enough to figure it out at the moment.

In the meantime, I’ll certainly keep an eye on Bitcoin. I don’t deny it has its uses in the current world. It’s just too limited right now. Whether it has a large or small role in the future that awaits us remains to be seen.

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Buying My First Bitcoin: My Reason And Experience

I talk about the future a lot on this site. That’s because, in general, the future excites me. I genuinely want to see some of the emerging technologies under development manifest. From advanced artificial intelligence to hacking our own biology to sex robots, I think these developments will lead to some major upheavals in society and I want to be around to see them.

I don’t know if I’ll live long enough to see all of them, but I want to make the effort. I want to experience the future and not just speculate about it.

This brings me to Bitcoin. Now, before I go any further, let me disclose that I am not one of those hardcore, uber-libertarian Bitcoin fans who see Bitcoin as the technology that will bring down corrupt governments and banking cartels. I’m also not among those who think Bitcoin is a total scam. For this technology, I try to keep my perspective balanced.

I see Bitcoin the same way I see email. It’s basically a digital form of a tangible thing/service that we’re familiar with. Email was a supplement to regular mail. Bitcoin is simply a supplement for money. Email didn’t end all forms of regular mail. As such, I don’t see Bitcoin ending all other forms of money.

As for the technology behind it, I’m no expert, but I definitely see the value. Bitcoin, unlike other currencies, has no boarders. It has no middlemen or central authorities. It doesn’t require a big bank or some other financial institution to authorize it. All it requires is an internet connection and a smart device with an app.

Beyond the money, the technology behind it, most notably the blockchain, has some exciting applications. It promises to change the way we process, manage, and scale big data. It has the potential to create secure, decentralized operations that can’t be run from the top-down by the future Mark Zuckerbergs of the world.

Even if you think Bitcoin has no inherent value, I hope you see the value in that.

Now, I have been following news about Bitcoin since 2013. I remember the first time it became a major source of headlines. It was primarily associated with black market economies on the dark web, namely the Silk Road. That was not necessarily a good association, but that didn’t stop Bitcoin from growing considerably in both value and use.

However, I didn’t invest in it or seek to buy any Bitcoins. Some of that was mostly because it was still so new. I wasn’t sure what to make of it and I didn’t necessarily trust the early Bitcoin wallets. It also didn’t help that some of the early Bitcoin exchanges went completely bust.

I understand this era still created plenty of Bitcoin millionaires. Those people are the lucky ones. Even after 2013, I don’t think we’ll see Bitcoin create any more millionaires like that. I still watched Bitcoin with a skeptical eye. I didn’t want to buy in until I could be sure it was able to weather these upheavals.

In hindsight, I think I waited too long. At this point, I think Bitcoin has proven its worth and its utility. It’s been around for more than a decade now. If it were a bubble or a scam, it would’ve failed long ago. Even if I’m late to the party, I can safely say that I have finally joined in.

Granted, I didn’t put my whole life savings into Bitcoin. I decided to start off small and honestly, it was a lot easier than I thought.

Here’s what I did to get my first batch of Bitcoin money.

Step 1: I downloaded a basic Bitcoin wallet, namely BRD. It’s the simplest, least cumbersome wallet I could find.

Step 2: I compiled about $100 in cash. These were just a bunch of $20 bills I had in my drawer. They were actually bills I got from Christmas cards. Since I buy most of my stuff with credit cards and my phone, I really didn’t have much use for them.

Step 3: I went to a gas station up the road from my house, which had a Bitcoin ATM. I used that ATM to purchase $100 in Bitcoin. It took less than four minutes.

That’s it. That’s all I did. I didn’t have to give my bank account number to anyone. I didn’t have to give my credit card number to anyone. I just took some bills that I probably wasn’t going to spend anyways and turned it into digital currency. I have every intention of purchasing more down the line.

In terms of loose change or extra bills, I believe Bitcoin is actually better than just letting that paper money gather dust. Unlike bills, Bitcoin’s value actually has the potential to go up. That’s something paper money rarely does.

It’s a key part of Bitcoin’s legendary volatility. That sort of thing turns a lot of people off and I understand that. They don’t want to wake up one mourning and find out their money lost half its value.

However, I would counter that paper money would lose that same value, but just over a longer period of time. It’s like owning fruit. It’ll only ever rot. It’s never going to get fresher. Bitcoin is a bit more like a game of cards, but with the odds in your favor.

Sometimes the value goes up.

Sometimes the value goes down.

Overall, due to the scarce nature of Bitcoin, its value is inclined to go up.

That $100 was only going to get less valuable sitting in my drawer. At least with Bitcoin, there’s at least a possibility that $100 could be worth a lot more later this year. Compared to what inflation does to money, I’ll take those odds.

For now, I just wanted to share my experience. I genuinely believe that Bitcoin and the technology behind it is going to be a big part of our future. It may not completely replace money, but it will improve on what we’ve got.

I’ll share more stories as the year unfolds. In the meantime, I’ll leave everyone with this little anecdote.

The first known Bitcoin purchase was on May 22, 2010 when a man named Laszlo Hanyecz bought a pizza for 10,000 Bitcoins. As of this post, one Bitcoin is valued at $32,711. That means someone payed $327,110,000 for a pizza.

That must have been a damn good pizza.

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