Over the last month, I have seen more triangles added to Bitcoin price graphs from analytical traders than I have in trigonometry math classes. “When will the bloodbath end?” they ask. These graphs are trying to justify that there is a method behind the madness. But in the real world, things go up and then they come back down. The Bitcoin graph is nothing more than a typical booming market, even with its deep fluctuations. With that said, I can understand the recent panic and fear of the falling price, but sometimes I cannot help but feel we are losing sight of what is important.
Price is important, absolutely. As an economics guy, I believe that those that get in first, those who have the foresight, are allowed to keep and enjoy the wealth they have acquired. But I mostly view my investment into Bitcoin as a charitable act, for the more Bitcoin or cryptocurrency I hold, the lower the supply and the higher the demand. Don’t get me wrong, I want to acquire wealth in the process too, but I am also motivated by the underlying immense potential of blockchain technology in disrupting the economic system of the present day.
Those that keep up to date with everyday events will know of the dangerous economic system we are currently living in. There is so much wrong with the system, from rogue central banks inflating the currency to oblivion, to the shaky fractional reserve lending banking system. One can find multiple examples of a system that just is not working. Bitcoin is the solution to these problems with its lack of dependance on centralisation and set supply of money.
This is just the start. As the Bitcoin community grew and grew, the decentralised technology evolved into something I never thought was possible. Take Zcash for example. Zcash focus is on being the most advanced private network. Zcash enables users to send Zcash coins, from one wallet to another in total anonymity. Other cryptocurrency projects, like Komodo and HUSH, have taken that technology and are moving in totally different directions. This is really what cryptocurrency is all about, the sharing of technology which leads to a kind of the division of labour in which different projects specialize in different things.
Another amazing area worth mentioning are ICOs (Initial Coin Offerings). Similar to IPOs, a project looking for funds will appeal to the internet on why you should help fund their project ideas with your Bitcoins. This was once considered a grey area in Bitcoin, is it a share? Are Bitcoin dividends legal? What has become now the mainstream is that companies are now offering buybacks of their coins, completely eliminating the need for red tape. The ICO scene is booming, even in a popped bubble. It was only recently that a project of the name ZrCoin raised funds to build a plant for the creation of ZrO2 (Zirconium Dioxide). The project is on the WAVES blockchain, whose creator Sasha Ivanov came to the realisation that ICOs do not need to be limited to decentralised projects, but to the real world too. The possibilities are endless.
Bitcoin is a technology like no other and possibly the most destructive and progressive technology of all time. As Bitcoin descends downward, it is best remember why we bought Bitcoin in the first place. I bought Bitcoin because I believed it would change the world for the better. My first Bitcoin was at around $600, and since then it plummeted all the way down to $200. At the time, I cared very little about the price, for I was running the marathon and not the race. Bitcoin is indeed a volatile coin; the moves that it makes in a month is done over years in the largest stock exchanges around the world. Maybe it is this volatility that has desensitized us into the day trading mentality; for quick profits (and losses) are so easy to come by in the cryptocurrency world. Maybe it is that mindset where we have lost our way.
While am not downplaying the importance and interesting nature of the analytical price trend graphs, in the case of Bitcoin I do believe that the technology behind Bitcoin is of more importance than the price. With that in mind, there is never a bad time to buy Bitcoin, for I am running a marathon and not a race.