Apparently, Bitcoin is taking over the world. As soon as I figure out what is actually going on, I will start to make adjustments. Is this part of some sort of new world order? Or, is this the future of how we will trade? We used to trade rocks, right? Why can’t we trade virtual money? Frankly, I am fine with electronic transactions because I already use online accounts and conduct all sorts of digital transactions. However, this feels like something different. It almost feels like the “rewards” that one earns when playing games on a smartphone or tablet. At the moment, I am just not sure what to think about Bitcoin. The speculation about Bitcoin impacts me, particularly if the financial world is about to change.
The meaning of currency
What is money, anyway? Is it something that I can hold in my hand? That is part of the commercial process, but obviously computers and technology have become a major part of the process. Truthfully, I don’t carry much cash these days and I don’t exactly have a lot of precious metals around the house. Therefore, I suppose you could argue that I am already partway to a world of all-digital currency. Still, this feels strange somehow. Maybe it is just because the Bitcoin concept is relatively new and unfamilar to the general public.
Should it be backed up?
The question about any currency is whether it should be “backed up” by something. My understanding is that currency is typically “guaranteed” by financial institutions, banks, governments and precious metals. Granted, I know there are different theories about the Federal Reserve and how that institution impacts the meaning of money in this country. However, that is a separate and probably more complex question. What is the backing for Bitcoin? A complicated computer? I suppose on some level this is no different than a website telling me that I have a certain amount of money that I can electronically send to another institution. And yet, it just seems different.
Should I invest?
What do I do about this phenomenon? Figure out a way to invest? Buy into a startup that is part of the Bitcoin infrastructure? This is the dilemma of investing. If this turns into something big, I will kick myself for not having the guts to invest in the early stages. However, if I sink some of my hard-earned cash into this venture and it turns out to be just a financial fad, I will wonder why I got sucked into the hype.
Maybe this will change the world. Then again, maybe it will disappear just as quickly as it appeared.
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