2014-01-20

My take on Bitcoin - appreciation for the freedom!

In the human world everything starts with an idea. That idea has to be built by a human mind in order to materialize it in this world. Imagining a new, digital, and secure currency as an alternative to traditional payment instruments is an extraordinarily exceptional achievement to me!
The vision and the thought processes leading to the vision of a decentralized, non-regulated, independent, and reliable currency are very exciting.
However, this phenomenon is more than just a new way of trading: It's about the freedom and power of imagination. We still don't know who the person(s) is/are behind the idea. For me, I even don't know, whether I really need this crypto-currency in the future. But I'm glad I already made a decent amount of money thanks to the volatility of the exchange rate.

In contrast to e.g. stock exchanges, where the market actors are only professionals with an appropriate license and are experts of their fields, Bitcoin exchanges will heavily be used by laymen, too. Everyone can join the party, manipulate the exchange rate or even open a marketplace without any restrictions. Without the need for law, government or gold reserve Bitcoins are just working, spread and increase in popularity across many countries. More and more businesses of various industrial sectors accept, embrace and use it each and every day. Start-ups utilizing and extending its versatileness will be created one after the other.
Without trias politica (legislative authority, executive authority, and judiciary) value will be added, jobs will be created, and wealth will be increased. It is optional to join: The country you're living in may ban, charge pay duty on or simply ignore it.

It's up to you how you perceive this liberty. The risk of losing your investment isn't a threat, but simply a natural consequence of the freedom, potential, and lack of experience and scientific knowledge of this exciting new territory.
People with limited or narrow perspective may only see the hazards related to Bitcoins, because they just can't handle this degree of autonomy. Such people rather rely on financial institutions dealing with means of payments, stocks, funds, or materials said to be valuable by others (isn't gold just a kind of metal…?). These people ignore many facts! The last economic crisis was possible because of the failure/corruption of the governments and the bank industry. The lack of criminal prosecution resulted neither in fundamental changes in the sector, nor in sentences for the responsible persons. Instead public money was used for saving banks and even for paying bonuses to employees for ruining whole economies. Less devastating is gambling funds or long-term bonds away. Common in both cases is that whether you were involved or not, you pay the penalty (with your investment and/or your tax) for the greed, maliciousness, incompetence, and failure of people who should've valued your trust, but are in fact just criminals or criminally unsuitable. In both cases you'd relied on the state, value reserves, responsible and skilled operation of your contract partner. You could blame all of them, but it was solely you who made the decision to get into business with those racketeers.

In case of Bitcoin there's a huge advantage: There's no false promise of safety and security, but only honest unpredictability. Due to its peer-to-peer nature no one else other than you can lose your investment. Unlike in case of conventional investments you can't delegate to anyone (such as a broker), you can't trust, believe or in any other dubious way waste your personal resources on anyone.
This overwhelming freedom with all its advantages and disadvantages can be yours, but enjoy it responsibly.

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