Bitcoin Is NOT Just Another Cryptocurrency - An Overview Of Basic Qualities Of Bitcoin
Everyone is once again talking about Bitcoin as a result of a recent banking crisis that might have contributed to the price of Bitcoin rising significantly. Bitcoin enthusiasts are once again seeing themselves in a position of advantage. Normally, Bitcoiners are misunderstood when they try to advocate the superior qualities of Bitcoin. It happens quite often that when a Bitcoiner trys to explain why and how Bitcoin is better than other kinds of money his statement is misconstrued as an attempt to bring more people to a pyramid scheme. However, as has been stated time and again, by many smart people, Bitcoin is not a pyramid scheme or any other kind of scheme, for that matter.
As a matter of fact, nobody can gain any special advantage if he persuaded someone to invest in Bitcoin, therefore Bitcoin cannot be called a pyramid scheme. Of course with each new Bitcoin investor the whole Bitcoin network becomes more stable and decentralized, which means that it is good for every single Bitcoiner, including the one who has just made an investment, when the investment occures. The only reason that some Bitcoin enthusiasts seem to be dishonest when they try to laud Bitcoin is that we as humans have a shared experience with things that some people try to tout as the keys to all financial problems which, invariably, turn out to be scams or swindles.
There is no shortage of ponzi schemes and other fraudulent activities going on in every sector of today's economy. The crypto universe abounds with all kinds of fraud that might confuse outsiders as to the authenticity of bona fide cryptocurrencies such as Bitcoin. In the chaotic world of crypto it is easy to fall into traps that dishonest players set up for inexperienced investors, who know little about the dazzling concepts of crypto and decentralization. More often than not these same dishonest players are the ones that are the harshest critics of Bitcoin.
Bitcoin is fundamentally different from any kind of money that we knew before its creation. Being so different and new, Bitcoin is often misunderstood by the majority of the world's population. There are many myths about the origin of Bitcoin, how it is mined or how it can be used. Although the number of new Bitcoin investors is on the rise it seems to me that it hasn't been able to find its true place in the highest place in the list of best kinds of money. In order to understand why Bitcoin is still far from being the most common form of money, something that it deserves to be, we have to pay attention to the timeline of the journey of crypto.
Before Bitcoin was invented nobody, apart from some developers, really knew about the now ubiquitously discussed concept of decentralized finance . The general public was slow to understand the importance of Bitcoin even after it was being mined by lots of technology savvy individuals. Once bitcoin price reached a certain threshold people started to pay attention to it. Once enough people became involved with Bitcoin it seemed to be unstoppable. Today Bitcoin is the most recognizable cryptocurrency and, arguably, the most secure one too. However, Bitcoin's astronomical success paved the way for some happenings that caused many people to lose their money and develop an unfavorable mind-set of cryptocurrencies. Some alt-coins popped up that proved to be scams.
These things led to a general belief among those of us who didn't pay much attention to the details of the subject that Bitcoin must be some sketchy project meant to defraud unsuspecting individuals. Of course that notion is wrong. Bitcoin is legit and a really secure kind of money. But mud sticks. The opinions that were formed are difficult to change even in the face of sound evidence to the contrary.
For a person who has just started paying attention to crypto, Bitcoin might look like just another cryptocurrency out of thousands of them. They might think all coins are equal and therefore make similar mistakes to those made by people in the first years of the crypto era. Trading various fishy cryptocurrencies, which are being created left and right, in centralized exchanges is the diametric opposite of what true Bitcoin hodlers aspire to.
Bitcoin gives us the opportunity to take the control of our money in our hands. Of course with the control comes responsibility. Investing in Bitcoin means that we are responsible for securing our assets ourselves. The only question that remains is whether we are ready to take the opportunity that Bitcoin provides for us. The most important thing to remember when thinking about Bitcoin is that it is not controlled by any single party. Buying bitcoin means expanding this trustless, decentralized network while keeping our money secure.
Bitcoin is different from other cryptocurrencies in that it is the oldest and the most famous among them. It is not wise to make inferences about Bitcoin based on what you have seen in the altcoins.
Understanding the unique qualities of Bitcoin is essential to making informed decisions about how you interact with crypto.
Disclaimer
I am not giving advice on investments here. This article was written for entertainment purposes only. Bitcoin, like any other asset, especially crypto assets, is subject to price volatility. It is best to consult with a professional before making any investment in anything. Only you are responsible for the decisions that you make.
