For a long time, I didn't even know what cryptocurrencies were. I'd read things here and there about Bitcoin, but I didn't really understand it. I'm sure I wasn't alone.
But who isn't talking about Bitcoin nowadays?
Just yesterday, media outlets teemed with reports about Bitcoin soaring to new heights; a CNBC headline proclaimed, "Bitcoin climbs to record, nearly three times the price of gold." Think about that: Despite near-constant poo-pooing by analysts in a variety of different areas, Bitcoin is a better investment than gold.
I bought Bitcoin for the first time a couple days after I signed up for a Steemit account. A couple days after that, I earned my first Steem – about $60 worth, from my introduction post. I will readily admit that I don’t completely understand cryptocurrencies yet. But I like what I’ve seen so far.
I bought my Bitcoin before the threat of the August “hard fork,” when the price had dipped. Now that the fears of the consequences of that hard fork have been revealed as completely unfounded, and the price of Bitcoin has shot back up, I’ve already made a small return on my modest investment.
And as a writer, I’m always looking for ways to use my craft in a way that helps me make an honest living. Steem feels new, and I think there are ways to make it more efficient and user-friendly. But I’ve already earned tangible money from a single post – something not easily done online. It’s a good feeling.
People have been predicting Bitcoin’s death for years, and there were many doomsday predictions leading up to the potential hard fork. Now that those fears have been availed, the criticism of Bitcoin seems to have backed off a bit (while the criticism – fairly, perhaps – has been directed instead at Bitcoin Cash), although there are still warnings about what dangers Bitcoin may face next.
One of the criticisms I’ve seen lobbed at Bitcoin many times is comparing the rise of Bitcoin to “tulip mania,” the so-called economic bubble over tulip speculation that supposedly popped in the 17th century. If something as silly as a flower can lead to rampant speculation only for the bubble to burst when people come to their senses, the skeptics argue, then it goes to reason that these mysterious “cryptocurrencies” everyone is raving about these days are, similarly, a passing fad whose own bubble is set to burst any moment.
But there’s a major flaw with this critical comparison: Tulip mania was a myth. A woman wrote an entire book about the problems and flaws inherent in this lasting economic myth.
I’m not economist, and like I’ve mentioned before, I’m still learning a lot about the intricacies of Bitcoin and other cryptocurrencies. In many ways, the rise of cryptocurrencies represent uncharted waters that very well could be leading to a fall. I don’t think it’s wise to put all of one’s eggs in one basket; you won’t see me investing all my life savings in Bitcoin any time soon.
But cryptocurrencies, and Bitcoin in particular, have defied the apocalyptic predictions of critics for so long, that I’m not sure it’s fair to say Bitcoin is merely a fad. Fads don’t endure for eight years and grow to be worth three times as much as gold.
I don’t know what the future holds for Bitcoin, but while I doubt the future of the cryptocurrency is all blue skies and sunshine, I doubt it’s all doom and gloom, either.