Bitcoin is here to stay because it has almost worldwide adoption and popularity. It’s difficult to explain what bitcoin is and why people want it because it doesn’t have a physical form, only a cryptographic code. Well, digital money desined that would be used as an alternative method of payment to fiat currencies. However, the difference lies in the fact fiat money and its value is controlled by the central banks and governments, while bitcoin is decentralized and has no authority that controls it. Bitcoins are issued by ordinary people worldwide with the help of special equipment. Those who don’t have such equipment can easily buy it on one of the numerous crypto exchanges. But choose fiat-to-crypto exchanges like CEX, this platform allows you to exchange fiat money to bitcoin ( https://cex.io/btc-usd ) and vice versa. The benefit of bitcoin is in a technology called blockchain that allows making transactions without third parties (mainly banks) thus reducing the transaction fees. The fees don’t depend on the amount of transacted bitcoin as well as on the country you send it. In addition, due to the limited amount of coin (21 million), it’s supposed that the price of each coin will only grow and won’t meet inflation, unlike fiat money.
Totally agree with you. I have a stock answer for “what even is Crypto” but whenever I hear friends say they’re going all-in, I cringe. It’s a gamble, not an investment, so if you’re going to get involved, don’t risk the money that you really need.
I got into it with just the cash I earned from a time-bound set of dividends, so I wasn’t really feeling a heavy loss if things went south - which they did. But still, I’m holding those positions because I’ve already mentally earmarked the cash as “f-it money,” so worst case it drops to zero, best case they spike again. Either way, I’m not exactly betting on retiring off of Bitcoin.
Am I crazy in thinking that, while blockchain is great, the coins are not really the value-add? So why would I invest in them? I want blockchain to succeed and become the standard, but cryptocurrency is such a side-step from it. Great for decentralizing currency, but blockchain is the thing that really has the staying power, rather than all these different coins…