What troubles me about Bitcoin

tl;dr: Not knowing about Bitcoin might save me a lot of discomfort in the short run but not knowing about it will likely cause more discomfort in the long run.  

Every now and then, there’s a small part of me that wishes I had never heard about Bitcoin.

Because if I did, then I wouldn’t have to deal with the uncomfortable truth about fiat money.

Particularly on days when I am tired, or talking with someone who has read 1 or 2 articles about Bitcoin in a mainstream publication but feels 100% confident that it’s a “fraud” or a “ponzi,” I just think “man, it would just be better to live in blissful ignorance.”

Then, I wouldn’t have this strange sense of responsibility to tell people about it.

I know it sounds evangelical and irrational.

I mean, why should I care that much?

Sure, I benefit on a personal level because I have some “skin in the game.”

But is it realistic that my personal actions are going to move the market that much? N

o. The blog readership isn’t that high.

I can try and be all noble about it and say that I just want to help my friends, family, and others protect themselves-that I am trying to “save the world.”

There’s some truth to that, I suppose.

I do know what it’s like to work for a living, to have the responsibility to support a family, and to want to be able to provide for them in the future, giving them opportunities and options.

Or maybe it’s because it just feels unfair that central banks practice death by a thousand cuts via Gresham’s Law and have sold the “truth” that inflation is a “fact of life.”

Or possibly it’s because I am a technophile, believe that technology can make people’s lives better when used well, like the elegance of the Bitcoin and various crypto systems, and just think that Satoshi invented a technology that is better “money.” I am confident that it’s a better store of value even if it’s not better “money” yet. But it is, as Balaji Srinivasan wrote quite eloquently, the “flag of technology” today.

And once you recognize that all money is just a belief system, then you just have to figure out which one you want to believe in.

Unless you want to go back to bartering everything.

Good luck with the coincidence of wants challenge.

There are beliefs and there are facts

I may believe that Bitcoin (or some other superior form of crypto) will one day be recognized universally as a better form of money than a government backed currency. Others may believe differently, but the picture doesn’t lie.

The simple fact is that the dollar you earn today buys you less next year than it does today. And much less in 10 years.

And while not quite a fact, there’s a lot of historical evidence that suggests that money controlled or influenced by politicians doesn’t serve the long-term interests of citizens.

But don’t take it from me, take it from the Wall Street Journal” The Era of Fed Power Is Over. Prepare for a More Perilous Road Ahead. Central banks have long exercised influence over booms and busts, but their ability is shrinking

It’s a long article, but here’s the most salient part (imho)

There are times when I get scared and anxious because I worry about what happens if my thesis is right.

I worry about happens to people’s savings, to the stability of society, and to the structure of society. Honestly, it feels like a burden sometimes. And it can be (relatively) lonely.

Heck, my wife thinks crypto is BS, so factor that into the equation.

The First Time

But every time I try to talk myself out of it, I am reminded of the first time I bought Bitcoin.

It was a relatively small amount and I sat there, with my finger on top of the Enter key to finalize the order, for something like 20 minutes.

“I’m never going to see this money again.”

“My wife is going to kill me when she finds out.”

“I don’t even really understand all of it.”

And then, another voice in my head said,

“But it just makes so much sense.”

I pushed the key.

I guess that was a Rubicon moment. I just didn’t know it at the time.

Maybe one day, I’ll look back at this post and say, “you idiot, what were you thinking?” That’s possible and it’s scary to be so public about something that is not obvious and definitely not a “sure thing.” I could look like a fool to a lot of people. I am putting my family’s future at some level of risk.

Brene Brown may be proud of me for this maybe?

But it just makes so much sense.