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What Are Your Thoughts on Cryptocurrencies Like Bitcoin?

Posted on June 11th, 2013 By Under Thoughts

I’ve taken my first real steps into cryptocurrency this week when I bought my first mining rig. I did not buy it purely to make money. The cost was around $2000, and honestly, I don’t believe I will ever really make a profit out of it due to the cost of electricity costing more than the returns I would get out of mining anything, whether that is Bitcoins, Litecoins or any other alternative coins (Right now, I’m messing with Bitgems and BBQCoins.)

When my buddy, Charles, brought up Bitcoin at a Meetup around 2 years ago, I thought not too much of it. I spent a little time mining it and reading into it, but figured it wasn’t really going anywhere. Back then prices were at around $10 for one coin. Today that cost is at $100 per coin, fluctuating daily. Let’s say I regret ignoring Charles a little bit.

But the real idea behind Bitcoins isn’t to create a, what I would call, a true push-button profit system, but to create a form of real world monetary value decentralized from any one government agency that is plagued with problems. Now I’m not too in-touch with FIAT economics and how it all works, but anyone with half a brain can see that the government control of currency and the current bank schemes aren’t what they should be. Bitcoins allow for near instant transactions, worldwide, with lower to zero fees, a level on anonymity, and a market based around what you and I see the worth at with no one group of people or banks with complete control over it. It is also a global currency, which means no fussing around with silly exchange fees (I have to pay around $20 in exchange fees for every $500 I spend here in Thailand.. yeah I really need to find a better bank!)

But here is the major dilemma. I don’t think many people are really valuing Bitcoins and other alternatives for what they should be, which is a pure, global form of currency to be taken for the exchange of goods and services. A lot still see it as,  again, a push button form of generating FIAT currency. If we want to see any major FIAT banking changes, we need to purge ourselves off of FIAT as much as possible and use Bitcoins as a replacement currency. We need to stop changing it to USD or whatever local currency and keep it as a Bitcoin, exchanging it from one hand to another. Until a more services and people start realizing that this is the future of currency (And I believe that it is, and we just aren’t ready for it at this moment), Bitcoins and other cryptos are just kind of stuck in Limbo.

I know I might not be making very much sense; I blame that on my lack of knowledge on how government and banks work. What I do know is that with FIAT, our money isn’t truly in our control. We’re left to the whims and wants of our banks and government. Bitcoins are untaxable, are finite (only 21 million will ever be produced and it will take over 100 more years for them to be minted through mining), and require work to be minted. There are no government bailouts and they will be produced at a predictable rate, which should help with volatility when more people can embrace the use of cryptocoins on a daily basis.

With that said, I’ve decided to accept Bitcoins, Litecoins and other minor alternative coins in exchange for goods and services I produce at a 10% discount over regular fees. The future of this currency relies on it being exchanged between us all, so I feel this is a step in the right direction to get it there.

I’ll have more affiliate marketing related posts for you this week! Hope my rant didn’t bore you too much!

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Comments

  1. Cryptocurrencies are the answer to finally having a single worldwide monetary system.

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