Ok, who's bought Bitcoin or any other cryptocurrency yet?
I finally took the plunge about two months ago or so and have been totally intrigued and hooked on this type of investing (if you can call it that).
When I first heard about Bitcoin roughly 3-4 years ago, I couldn't wrap my brain around the concept. I thought that it was a currency that was trying to replace the U.S. Dollar and make it extinct. I thought how in the world can a new currency just come into being without any kind of government support? What about all the people that currently have money in the form of U.S. dollars? Would everyone be broke now? I didn't realize that the value of a currency that could potentially replace the dollar would fluctuate in value more than what a U.S. dollar was currently worth. I didn't understand how Bitcoin could have value.
Fast forward to a few months ago and the more I read about it, the more it made sense. It's like a lightbulb went off over my head.
Bitcoin isn't necessarily going to replace the U.S. dollar (or any other currency), it's going to trade alongside of it. That's when it made sense to me. Just like the Euro, and the Yen and the Canadian Dollar, in which all these currencies can co-exist with each other in the world, Bitcoin can also exist alongside of them as another form of currency. We just have to have enough people to believe that it has value to make it a viable "other" currency.
And just like the dollar, yen & euro which fluctuate in price and can be used as a store of value, bitcoin can do the same (and is). It has a price and it fluctuates. It is another form of storing value, just like stamps and artwork and baseball cards and comic books and vintage records, etc. These things all have value because people have decided they have value. This is what's happening with bitcoin.
But I think one of the greatest values of bitcoin today is the blockchain technology that is the backbone of the whole cryptocurrency system - the fact that we can make anonymous transactions with no middlemen taking fees along the way. It's genius!
Every transaction is tallied amongst hundreds of thousands of computers around the world making sure every transaction is legit and every transaction is known. There's no getting lost in the system and no hacking is possible. Every one of those hundreds of thousands (if not millions) of computers have a record of every transaction so there's no breaking the chain - hence, the "blockchain" technology.
Listen, I'm still new to all of this, so it's still a bit of a learning curve for me. Don't rely on me for all the info about bitcoin. There's a TON of information on the web about bitcoin and how it works, so if you're interested, start doing some research and report back to us!
For now, I have a small stake and can't wait to watch it grow - hopefully!
Give us your comments on bitcoin.