Is Bitcoin Technology ahead of its time?
Three years ago, there was an article written about Bitcoin technology and how it was most likely “ahead of its time”. Tech-savvy people don’t often relate to such a concept, since all new tech is exciting and welcomed. Early adopters practically inhale new tech releases to maximize potential and ultimately create more new innovations. But not everyone looks forward to new technology. Even some who do often don’t take the time to fully understand new innovations. Hence the countless computers and devices bought upon release, only to be used for not much more than email and social media. Three years later, it could be said that Bitcoin technology is still ahead of its time, even though there have been countless new services, devices, and publicity – not to mention an incredible rise in price.
Bitcoin Technology Adoption
“Ahead of its time” is defined as being innovative and radical by the standards of the time; more characteristic of a later age. Meaning an idea, in the case of Bitcoin, is advanced – usually too advanced for current technological abilities or the current society. While many in the crypto-space quickly master the use of wallets, exchanges, hardware wallets, and peer-2-peer transfers, the majority lack basic understanding of the underlying technology. Managing, securing, and transacting in bitcoin is complicated to newcomers, and the lack of knowledge can make this asset intimidating.
Bitcoin Technology Timing
Individual decisions to begin using a new technology are often the result of a comparison of the uncertain benefits with the uncertain costs of adopting it. An understanding of the factors affecting this choice is essential. This kind of decision means that the choice being made is not a choice between adopting and not adopting, but a choice between adopting now or waiting until later. It is important to look at the decision in this way because of the nature of the benefits and costs.
In the case of a bitcoin investment decision, adoption seems to be delayed in part by 1) uncertainty over future profits, 2) volatility that could result in loss, and 3) the opportunity to delay. The golden rule of investing in Bitcoin and other cryptoassets is to not invest what you can’t afford to lose. The “get rich quick” hype has encouraged more than one investor to ignore that rule. The far better approach is to invest using a “dollar cost averaging” method and to have clearly defined goals with realistic expectations. The crypto market will go up and down, and it is important to understand that you haven’t “lost” or “gained” anything unless you sell.
Timing is everything, and those who invest funds needed to pay living expenses will often find themselves panic selling and incurring a loss. Those “unrealistic expectations” have turned off many newcomers to the crypto-space. This is a pity because few assets have delivered the incredible returns bitcoin investors have seen in just a few short years. The exponential increases in the span of weeks or months are completely unheard of in any other field except crypto. Therefore, it draws in people looking for for a way to make money quickly, and that is not a good strategy. A better strategy for Bitcoin investment is to hodl and prepare to play the long game.
Knowledge is Key to Smart Strategies
You don’t need to be a computer scientist to buy and sell Bitcoin. However, it is useful to have a general understanding of where Bitcoin came from, how a transaction works, how to use a wallet, what private keys are, and how to protect them. Bitcoin transactions are irreversible and not knowing how to use it properly could have serious consequences. If you send your bitcoins to the wrong place accidentally, there’s no getting them back.
Dive deeper and you’ll realize that Bitcoin is the most accurate form of truthful record keeping humanity has ever produced. This is likely to have huge consequences for our entire monetary system, so understanding Bitcoin’s true potential is more important than ever. Bitcoin is immutable, tamper-proof, censorship resistant, finite in supply, and only likely to increase in value over time. Bitcoin will need to mature as a technology in order for more people to use it, but that is what gives early adopters the edge few other investment assets offer.
While nobody can predict the future, and nobody knows what any given crypto is going to do next – it seems obvious there is a future for cryptocurrency. FOMO buying is not the answer, nor is relying on the so-called “experts” advising buy/sell on any given day. Dollar cost averaging involves discipline, but it is the practice of spending the same amount of money on bitcoin at regular intervals. This averages the price paid for Bitcoin, sometimes a little cheaper, sometimes a little more expensive. But it removes the need to guess or time the market and it is proven to generally perform better than most traders.
Bitcoin Technology Now
If looking to compare Bitcoin with the adoption of the Internet, roughly speaking Bitcoin and crypto is around the 1995–1998 levels. Many thought the Internet was at its peak during that time – and they were completely and utterly wrong. It is most likely the same for Bitcoin, so thinking you’re going to miss out because the price rose in the last week is short-term thinking that will cause you to miss out. One day, today’s prices will seem comparatively cheap.
Bitcoin Technology Value
- Can be used by anyone, for free. 100% indiscriminate.
- Can be used in any country, for free.
- Can be stored safely by anyone, for free.
- Can be sent worldwide in seconds, nearly for free.
- Controlled by everyone with no single authority.
- Scarce – only 21 million will ever be mined.
- Censorship resistant.
- Open to innovation and improvements
- Unconfiscatable – cannot be seized by any entity.
- Pseudonymous – disguised identity.
- Peer-to-peer and free from any middleman
- Verifiable – cannot fake BTC, unlike gold and currency
- Market gives it value – good old supply and demand
Educate yourself on bitcoin in order to take advantage in a knowledgeable, responsible manner. For example, a purchase of one bitcoin three months ago (at time of this posting), would have been a $5,717.26 investment. Bitcoin today has reached $11,703, but now is not the time to sell, as it appears bitcoin still has far to go.
Disclaimer: This article in no way constitutes financial, legal or investment advice. It exists for educational and informational purposes only.