My top 5 reasons for buying Bitcoin

Introduction

“The heart has its reasons which reason knows nothing of… We know the truth not only by the reason but by the heart.” – Blaise Pascal

My heart wanted to own Bitcoin and then my mind found reasons why I would be right in doing so.

So allow me to present to you my top 5 reasons why I ended up buying some Bitcoin even though it is a highly volatile asset/currency, not authorized by any government body (not legally banned either), and intangible (you cannot touch it as it is just a ledger entry on a set of computers).

Reason 1: Curiosity and Learning

My interest in Bitcoin was piqued a few months back when Elon Musk started making news in this space by allowing Bitcoin for Tesla purchase and then started dipping his toes in the Dogecoin crypto. I wondered if Bitcoin was that big a deal. I had to dig deeper.

I started with the Youtube video and online articles. The AI behind these apps helped by feeding me more articles with a more diversified point of view which expanded my learning in the process. I could understand the insecurities of the governments, the faith of the technocrats, and the mistrust of the public in general.

The world’s second-oldest profession (finance) was undergoing another tectonic shift and I wanted my knowledge to be a little better than that of a layman.

Reason 2: Technology behind the application

I followed the videos and articles with a book called Blockchain Revolution by Don Tapscott and Alex Tapscott. The book is a flag bearer of the underlying technology of Bitcoin which is Blockchain. It was not easy to understand the application without understanding the need which gave rise to the application and this is where the book came in handy.

Bitcoin is just one of the applications of the underlying technology called Blockchain. Ethereum which is another blockchain with its crypto currency is developing other applications called Dapps.

According to the book if the first wave of the internet-enabled the exchange of information the second wave of the internet lead by technologies like blockchain will enable the exchange of value on the internet. Just like you could exchange emails, pics, and information in the first wave, the next wave will allow you to transfer money, property, and assets without worrying about the intermediaries like government or banks.

Reason 3: Didn’t want to miss the bus

Well actually, I have already missed the bus. The first bus left somewhere in 2007 when Bitcoin was released. I just don’t want to be on the last bus. The Bitcoin value has appreciated from nothing to Rs 26 lacs approximately and it is expected to grow even faster as the word spreads and the adoption increases.

Yes, it is a highly volatile and risky asset. Yes, it doesn’t have the approval of government bodies. And yes there is nobody to watch your back as a regulator. But these are the exact reasons why it is a unique and high-risk high-return business.

My strategy which is adapted from what I learned online from really smart people like Elon Musk and Michael Saylor is to invest only that much money which you can afford to lose. Never make it more than 2-5% of your portfolio and sit tight. Period.

Reason 4: Community of shared beliefs

Do we trust people or machines? Do we trust banks with their greedy promoters who are ready to bet your life savings on risky loans? In poor and underdeveloped countries would the average Joe trust his government with his money, the government which will devalue the lifetime savings by printing an obscene amount of money at the drop of a hat?

I believe the value of money cannot be trusted by a single person or even a group of people. As long as these people are not God, they are bound to have biases and compulsions. Crypto currencies don’t. Why? Because they are computer codes on a machine and the Bitcoin supply is not controlled by one single person or even a group of people. It is fixed.

I also believe people should have the right to decide who they want to lend. Why would I give that authority to bankers? Well given a choice I would like to have partial if not complete control over who the money goes to. The subprime crisis and corruption in the banking industry have taught me that bankers cannot be blindly trusted with your money. Since Bitcoin can’t be “stolen” from you, why should I put the money in the bank, I wonder. Internet is going to be your new bank!!!

Reason 5: The Impact on the Future

When I was growing up in the 80s and 90s as a child, I remember using 5 paise coins to make purchases. Now there are Rs 10 coins sitting in my drawer which I haven’t touched for a couple of years. Why? Because I don’t need to. UPI and Digital wallets don’t require me to carry clunky coins in my pocket.

Fast forward 10 years from now or maybe more. International travel will not require you to carry any money at all. Bitcoin works seamlessly across borders and you don’t have to pay hefty commissions buying foreign currency.

A truly global currency is the only way to envision a global village and Bitcoin and Blockchain seem to be the key contenders towards achieving that dream.

Conclusion

The top 5 reasons I have mentioned above are highly personal opinions and not investment advice. There are several challenges facing Bitcoin and Blockchain as a technology and the world’s best minds are working on it. I would put my Bitcoin (read-money) on them to solve them as we move along.

Blockchain is a subject as vast as the Internet itself and we are just seeing the birth of the technology. I would recommend wait and watch strategy rather than jumping in head-on especially if you are thinking of putting your money in it.

If you have invested in any of the crypto currencies or have an opinion about them do share in the comments below. Also if you haven’t registered for the Newsletter, you can do so at the bottom of the home page of https://sanadsuman.com.

2 thoughts on “My top 5 reasons for buying Bitcoin”

  1. I was mostly intrigued by the simplicity of entire concept behind Bitcoin. How Satoshi used basic computer engineering concepts like cryptography, hashes, linked structures and built something which is so awesome. And handling complexities like complete decentralization, double spending is still puzzles me more i think about it. Super pumped for Bitcoin to be alternate currency years down the line (may not be used in day to day transactions but definitely gold)

  2. Attractive section of content. I just stumbled upon your blog and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Any way I will be subscribing to your feeds and even I achievement you access consistently quickly.

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