Are you going to sell your Bitcoin?

(The views expressed below are merely the personal opinion of the author and are not financial advice.)

For everyone who is holding Bitcoins (or any other legitimate crypto currency for that matter), this question will probably sound very familiar right now. I myself have encountered this question most frequently since Bitcoin hit (and surpassed) the $10,000 mark not so long ago, drawing in worldwide attention of the mainstream media.  

The above question is most often asked by friends and family who believe it is at this stage time to ‘cash in the chips’ and walk away a happy camper, before it is too late and the bubble bursts. After all, it is common knowledge that being too greedy and not knowing when to stop is the Achilles heel of every gambling addict, leaving him with empty pockets at the end of the ride. 

The meteoric rise of Bitcoin, climbing from $1,000 in January 2017 to around $17,000 in December 2017, has taken the world by ‘surprise’ and is defying the conventional understanding of how financial markets are supposed to fluctuate. Such spectacular gains being unparalleled in the global financial markets, they are hard to fathom by the established Wall Street bankers (Jamie Dimon, CEO of JP Morgan infamously labelling Bitcoin a “fraud”), famous economists (Nobel Prize-winning economist Joseph Stiglitz sating that “Bitcoin should be outlawed”) and the mainstream media which are doing their best (but mostly failing) to explain a subject they struggle to understand to the general public. The atypical surge of Bitcoin’s global market cap from a few hundreds dollars at its inception (January 2009) to nearly $300 billion at the end of the year 2017 has earned Bitcoin the title of “the bubble to end all bubbles”. The Dutch media (i.e. the Netherlands, Europe) are thrilled at the idea that, at last, the tulip mania of 1637 will no longer go down in history as the biggest bubble of all time, as the tulip mania is being eclipsed by the global Bitcoin mania (so they believe).

So, for those who are wondering, what would be my answer to the above question?

The answer is quite simple. HELL NO, I am not selling any of my Bitcoins any time soon!  

Why?

People who are asking the question ‘are you going to sell your Bitcoins?’ are missing the point.

Bitcoin is not a speculative investment or wild gamble. It is first and foremost a revolutionary new technology solving a problem that the world was unable to solve before the invention of Bitcoin: it allows for the peer-to-peer exchange of digital information without the need of a trusted third party-intermediary (e.g. a bank).

Its decentralized nature, fixed supply (a total of 21 million Bitcoins will ever be created, of which almost 17 million Bitcoins are already in circulation today.) and divisibility (up to 8 decimal places) make it a new and better form of currency and a better store of value when compared to fiat currencies 

(such as the USD or the Euro) which can by printed at will by central governments or gold (having a market cap at the time of writing of around 7.5 trillion USD).

Bitcoin and cryptocurrencies are the new currencies of the future. The world is not witnessing a bubble, but rather the beginning of a paradigm shift in the way people around the world understand and use money and store their wealth.

The recent spectacular run up in price of Bitcoin may in part be caused by large volumes of speculative buying, but Bitcoin and other decentralized cryptocurrencies are here for the long run and have a lot further to grow.

What do you guys think?  Feel free to leave a comment below.

If you're a fan of Bitcoin and want to help Bitcoin Gear in its quest to accelerate Bitcoin's mainstream adoption, then make sure to grab some Bitcoin gear and wear it proud!

Cheers,

Mike


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