Too many people invest in bitcoin the asset without fully appreciating all of the value that Bitcoin the technology can provide.
This is an opinion editorial by Tim Niemeyer, co-host of the Lincolnland Bitcoin Meetup.
Source
As you might have learned from watching the mainstream news, the bitcoin price has been pumping as of late. If you bought the top and held until now, you may consider taking advice from good ol’ Mr. Goldshill himself, Peter Schiff, and use this opportunity to sell. If you’re someone who missed the boat, though, you may reasonably wait for confirmation and buy closer to $70,000. For those thinking to make a quick buck, you might hop on for a ride just to try and cash out near the next all-time high. If you’re a Communist who doesn’t believe we need a noncoercive way to coordinate human action… well, then, I can’t help you.
Whatever your story or specific situation is, one thing is clear: buying bitcoin is not going to help you.
Yes, you read that right. The physical act of trading one monetary good for another does next to nothing for you. Sure, you might make a few dollars in the short term (save for as much as 37% on short-term gains taxes). You may even get a girlfriend. Pay for that next vacation? Lambo? Why not?! But none of that matters because the ultimate value of bitcoin is not merely quantitative, but qualitative. And to get the qualitative benefits, you’ll need to prove you’ve done some work…
Proof Of Work
Source
The gift of bitcoin lies in the unfathomable unlocking of understanding that you receive from putting in the time and effort to study it. The bad news is that there’s so many different rabbit holes down which to go. You could spend months to years learning about any of the following: cryptography, computer science, distributed systems, open-source software, network effects, game theory, economics, monetary theory, eleventh grade math, energy production, geopolitics, history, human rights, philosophy, human psychology, personal responsibility, just to name a… few. The good news is that there’s so many rabbit holes down which to go. I’ve been studying Bitcoin since 2018, and I’ve yet to even come close to exhausting the depth and breadth that Bitcoin offers. On top of that, the wisdom derived is rooted in reason and logic; it acts as an anchor in a world where reality is constantly and increasingly manipulated.
Initially, it’s hard to grapple with the fact that you’ve grown accustomed to living with a relatively short-term mindset, as we all have at some point in our lives. This short-term mindset is what Bitcoiners refer to as “high time preference.” It might take some time, but understanding how the money we choose changes individuals’ incentive structure is the first step to understanding why bitcoin is the best form of money. Inflationary fiat incentivizes its users to make decisions based on the needs of the present, while disinflationary bitcoin incentivizes its users to plan for the future while deprioritizing present consumption. It took me years of intent study to get to a point where I could articulate that point and truly grasp its effect on society. Don’t expect to get there in one conversation, article or podcast. This knowledge can only be spoon fed so much. You have to build a “proof-of-work” mindset. Unfortunately, many of your friends think they already know what they don’t know…
Dunning-Kruger Around And Find Out
Source: author
Wikipedia states that the Dunning–Kruger (DK) effect is a cognitive bias whereby people with low ability, expertise or experience regarding a certain type of task or area of knowledge tend to overestimate their ability or knowledge. One main reason that most normies won’t take the time and effort to do their own research, or DYOR, is because of hubris.
The most recent and obvious example of this in regards to Bitcoin came during Joe Rogan’s recent interview with geopolitical strategist, speaker and New York Times best-selling author, Peter Zeihan. While this guy is seemingly intelligent and well versed on much of what he writes and speaks about, he completely exposed his utter lack of knowledge and understanding of Bitcoin (and basic monetary theory) in less than a three-minute time span. For a great breakdown of how epically wrong he was about Bitcoin, listen to Guy Swann’s brilliant “Bitcoin Audible” podcast.
The point here is not to beat up on Zeihan (too much). The point is that we are all human and are able to easily make incorrect assumptions based on misconceptions and ignorance. To approach Bitcoin, you must begin with a level of humility and intellectual honesty. Unfortunately, too many of us will outsource this to “trusted” media sources filled with people who have yet to do the work themselves. This is a core concept within Bitcoin: don’t trust, verify. If you choose to trust those who show bravado but are void of any depth of knowledge, you’ll end up sharing their same misconceptions. You have to do the work yourself and come to your own conclusion. It takes… time (pun indeed intended).
It Takes Time…
Source
The physical act of purchasing bitcoin is not the pinnacle of virtue. If you want to capture the entire value that Bitcoin offers, you need to show the mental proof of work required to comprehend at least a fraction of what this invention can do. Most of your normie friends won’t, though. Many will continue believing that the solution to life’s ills can be solved through subjugating their will to an equally-flawed human, whether they be red or blue. Others will go back to their bread and circuses. Most will lose focus in order to support “the next thing.” Everyone will have their reasons and justifications. Some of your friends will even become salty haters or remain intellectually dishonest.
You, on the other hand, have the opportunity to expand and grow, to see outside of yourself. Lower your time preference. Face your Twitter addiction. Turn off your television. Get anchored in reality. Don’t listen to any cocky DKs. Read a book. Listen to an audiobook. Download a podcast. Ask questions. Attend a local meetup. Prove your work. Take the orange pill. Do your own research. I humbly implore you, don’t buy bitcoin. Just learn about it.
This is a guest post by Tim Niemeyer. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
In the face of ongoing challenges to our cherished freedoms, it is imperative to critically examine the forces at play that threaten the very fabric of democracy. The ideals of freedom and open markets are at risk of being undermined by influential political forces seeking to impose oppressive order and control in the name of
Avnet has become the latest major enterprise to begin accepting payment in bitcoin and other cryptocurrency. On March 19, 2019, the company announced that it will allow customers to pay for goods and services using bitcoin and bitcoin cash. Crypto payment processor BitPay will facilitate the transactions. Founded in 1921, Avnet is one of the…
Bitcoin stokes an inner curiosity about the nature of money and other seemingly topics. Once it clicks, it’s hard to refrain from telling everyone.This is a transcribed excerpt of the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, they are joined by Jason Maier to talk about how Bitcoin is an even…
Grayscale Investments LLC has officially launched the Grayscale Bitcoin Miners ETF (MNRS), providing investors with a unique opportunity to gain exposure to the Bitcoin mining industry. This ETF is designed for those who want to invest in Bitcoin miners without directly purchasing Bitcoin itself, making it an attractive option for traditional investors looking to diversify
Listen To This Episode: AppleSpotifyGoogleLibsynOvercast For this episode of the “Bitcoin Magazine Podcast,” host Christian Keroles sat down with Bitcoin developer and economist James O’Beirne. O’Beirne is a Bitcoin Core developer with very unique experiences across disciplines, being both a Bitcoin Core contributor as well as a learned macroeconomics scholar. He took Keroles through his…
Bitcoin offers a chance at hope in what can seem like a never-ending cycle of debt and economic obstacles.Yes, I am homeless. Unhoused. I am not alone.In the Netherlands, there are 38,000 homeless, growing daily. It can happen to anyone. One day, you have a job, a relationship and a bed, and before you know…
Stablecoin issuer Tether has significantly expanded its Bitcoin holdings, acquiring 8,888 BTC worth around $600 million. This latest purchase was revealed through on-chain data rather than an official announcement.Tether has not publicly disclosed its Bitcoin addresses. However, transactions tracked on the blockchain show 8,888 BTC were recently sent from the crypto exchange Bitfinex to an undisclosed
Bitcoin Magazine’s BitcoinHalving.com 21-hour live stream was a celebration of programmable scarcity during Bitcoin’s third-ever subsidy halving. It brought panel discussions, fireside chats, technical analysis, banter, memes, music and an unforgettable decentralized countdown to Bitcoin’s global community and beyond. Among the diverse pieces of content presented were firsthand demonstrations from some of Bitcoin’s most active…
Why do we celebrate this joyous holiday, and how does it resemble the quirky holiday of Festivus?Bitcoin Pizza Day. The fabulous event that takes place once each year on May 22. I won't bore you with all the details. Laszlo Hanyecz paid 10,000 BTC for two Papa John’s pizzas in what’s widely believed to be…