This article is a response to the discouraging and derogatory words that are being used by the media in reference to the value of Bitcoin and Alternative Currencies. The media is accidentally framing any activity in the Bitcoin and Alternative Currency market in an insulting and belittling way. Bubble, as defined by Wikipedia, is an increase in price “when market participants drive stock prices above their value in relation to some system of stock valuation”. A Correction, is a reverse movement, usually negative, of at least 10% in a stock price to adjust for overvaluation. Both the words bubble and correction carry a negative implication. They both imply that Alternative Currencies are worth less. Whether this intrinsically insulting word choice is a defense mechanism being carried out through the media on behalf of those who are overly entrenched in fiat currencies, or just the very common resistance of skepticism that we see in response to anything that is new, is uncertain.
My first reaction to Bitcoin was that it was a Ponzi scheme, or a scam of some sort. I felt required to at least see what it was and educate myself on it somewhat, so I did my due diligence by watching a 10 minute video which I did not understand. Not understanding how this could possibly create actual money, or value as I saw it, and of course being lulled into an involuntary nap after my first lesson on the Blockchain, I then proceeded to Google “Bitcoin is a scam” and scan the first article in the search results. I was satisfied that my original judgment was correct within one minute, and that comforting thought allowed me to completely dismiss this foreign and intimidating idea as if dodging a bullet. People naturally seek out information that is affirming to their then current beliefs, because it feels good. They feel a sense of peace when they know they’ve chosen correctly and are on the right path. Conversely when exposed to thoughts that are or are interpreted as being in opposition to their own it creates fear.
Bitcoin and Alternative currencies are especially fearful to some because some say that they should disrupt the system completely. For the average person in the US, a middle income employed person the idea of being a debt slave is so humiliating and uncomfortable that they will not think about it. The professional person, will not entertain the idea of upsetting the system because it threatens to take away everything they have worked toward. Add to this the social scrutiny any person has to endure whenever they adopt any idea that’s unfavorable to their group and you’ve got enough reasons to banish the idea Bitcoin to the collective subconscious for several years.
There’s nothing inherently fearful about Bitcoin, because it is what we make of it. It could be just as simple and smooth a transition as swiping a bitcoin debit card instead of a fiat one, or it could be a disruptive social revolution. As young savvy currency investors let’s take it easy and take pity on the rest of the world, many of them are still struggling to navigate their online banking.
To sum up, I believe that the patronizing language used to describe the movements of Alternative Currency prices is a defense mechanism against cognitive dissonance and fear of the unknown, or in some cases, the known. I realize that I did get somewhat off track from the goal of affirming what we already know, and I apologize. Blockchain technology, the use of Bitcoin and Alternative Currencies is our choice. We make our reality by our will to choose what we do. If we value Bitcoins they are valuable, and that’s the definition of valuable. Thank you.