I recently saw a post on Facebook, where someone had posted an article about Bitcoin ATMs. The comments on the article made it clear, just how misinformed people are about Bitcoin and Crypto currencies, so I figured I would write a little article about some of their concerns. This article really isn’t about what Bitcoin actually IS. There is lots of articles about that already, explaining what blockchain technology is, what decentralized currencies are, and why they are a good thing. Instead, I wanted to talk a bit more about some of the myths, fears, and down right ridiculous notions there is surrounding this new crypto craze “fad”.
Bitcoin is a fraud. I see this one a lot. Yet I have yet to see anyone actually say, why it is a fraud. No evidence at all. Recently JP Morgan CEO Jamie Dimon came out publicly calling it a fraud. Again, with no real evidence. He said he would fire any investor that bought Bitcoin. Yet, the company purchased millions of dollars worth after his comment caused the price to drop. Of course bankers don’t want people investing in something they aren’t profiting from. They want your money, because that is how they make money. When someone can actually show me proof it is a fraud, I might believe that.
It isn’t real. When I ask them to explain how it isn’t real, I hear, you can’t touch it, or hold it. Well, that is true, except these days, with checks, debit cards, credit cards, bank accounts, and online payments…when was the last time you held all your money in your hand. I assure you, Bitcoin and other alt coins are very real. Just in a digital sense. You trade real US dollars (well, digital US dollars) for Bitcoin, the same way you would gold or silver. People believe that because they can hold a paper dollar in their hand, it makes it more “real”. The paper is real. The value is real. The future is uncertain.
It’s a bubble! I honestly don’t know enough about markets and bubbles to say it isn’t, but I have heard “It’s a bubble” since the price was $2000. Today it is near $20K USD. I am glad I didn’t listen.
It’s just a fad. Bitcoin today, is comparable to America Online in the late 90s. People said the internet was just a fad. Then we had Myspace. Then Facebook. And I admit, that when Facebook came out, I thought it was dumb and had no interest in it. Who still uses Myspace, or worse AOL today? Bitcoin is in it’s infancy. It is just now starting to get know to the general public, so of course it is surrounded by fear, uncertainty, and mystery. Generally, by nature, people are scared of things they don’t know or understand. Human nature causes them to stay away and run from scary things.
I’ll keep my paper dollars and metal coins. That’s fine! That is your choice. Nobody is forcing you to buy crypto or saying cryptocurrency is taking over…yet. Keep your dollars. I still use dollars occasionally. I also have Bitcoin and alt coins as well. It’s not a one or the other scenario. You may want to call up your stock broker though, and ask them to send you paper dollars and coins over.
I can’t afford a Bitcoin. Well…neither can I. Thankfully you don’t have to buy a complete Bitcoin. You can buy fractions as well. You can also buy over 1200 other coins, some that are actually less than a cost of a penny.
These are just a few of the fears I have seen. Some of them are actually pretty hilarious. Not sure where people come up with some of this stuff. Maybe watching the news? Nobody is forcing anyone to buy or use Bitcoin. Most that I know who have gotten into it have and are making money. I tried buying stocks. they wanted $10K just to start. I tried FOREX but even getting registered was a hassle. I tried a money market savings account. $800 deposited made me $.22 cents in a month. I tried bitcoin with the same $800. I made $300 in 4 days.