It’s here. The virtual currency that has teenagers drooling, hackers pixelating and governments shuddering. All across the digisphere, folks are perplexed, confused, excited and opinionated. If you listen, you’ll hear things such as…
“It’s going to boom!”
“Its going to crash!”
“It will never replace ‘real’ currency”
“It has already replaced ‘real’ currency.”
Just pick your favorite rant and run with it for 24 hours or so and you’ll probably be right. But what about the really long haul? What if you just slowly accumulated Bitcoin for the next 3-5 years?
Thats what this blog section is about. Not get rich quick schemes or trying to make a quick buck. Perhaps anarchy hasn’t won the war yet, but they have gained significant advantage this time. What fascinates me and piques my interest in Bitcoin is the sociological aspects of a bunch of renegade technophiles building their own nation-state complete with transactional currency. Say whatever you want about Bitcoin, but the simple fact is I have some and there are people in this world would be happy to buy it from me. There are others who will sell me goods and services. There was one guy who was selling a condo in Riverside, CA for approximately $90,000 and was willing to take the 90K in Bitcoin, valued at whatever the going rate was on the day of the transaction.
Here are some questions that I have that I’d love for you to ponder and discuss.
Some say that Bitcoin will not be accepted as a currency until it stabilizes. This is because store owners need to be able to predict the value of their inventory. This has merit. But only if you think in old-fashioned terms. What happens when our buying habits fluxuate according to the value of our currency?
What happens if someone like Richard Branson or Warren Buffet or Bill Gates decides he wants to corner the market on Bitcoin? They could purchase the entire capitalization of Bitcoin at the time of this writing.
Now, think deeply. Does it really matter? What if I retire to my dream house on a hilltop outside of Santa Cruz, CA, and get online. I buy all the goods and services I need with Bitcoin, including grocery delivery. I sell my software services and accept Bitcoin. I could live almost completely off-the-grid. I could build my own self-sustaining financial eco-system. The ‘dollar’ value of Bitcoin become irrelevant. Everything becomes a negotiation. On each transaction, you and I decide what Bitcoins needs to exchange hands. In effect, Bitcoin becomes a chit for managing a barter. It is no different than paying in labor or in chickens. Can you imagine a sub-culture that exists like this?
I welcome your thoughts.