I started looking into bitcoin about 4.5 years ago. At the time, I had no idea how to even buy a small piece of this exotic thing. I did not understand how you could “own” a virtual thing that represented nothing tangible and claim to be an “investor”.
What kind of investment is that?
Even though I am a newbie, the whole bitcoin thing has me in a fever of excitement. Can you really make a difference without owning ‘real money?
So I started to study. A novice investor, but an avid reader who wanted to know more. I read every book there was on the subject and gradually got a clear overview of cryptos. I later learned that there were dozens of them, but I did not care that much. All I wanted was to learn more about Bitcoin, the King of cryptocurrencies, and to be honest, even the mysterious, ghost founder and the back story were incentives for me.
As I got into Bitcoin, one thing became clear to me. There is really not much need to read about Bitcoin per-se. Bitcoin is a virtual coin, alright. A token whose value fluctuates over time like any other asset. Measuring its value against USD follows the rules of the market — which is good because you can get a better grasp of the concept.
What I also realized was that the system is based on blockchain”.
Wow, what is that?
I have a thing for catchy terms, so I did not hesitate to dive in (again).
Aha! (I had an epiphany). Terms like “ledger”, “decentralized finance”, token, hash, mining, “trusted network”, started popping up in books and online. I was excited. Now Is the Time, I felt, to understand as much as I could about it, and it all felt like — you know — a need as urgent as water to quench my thirst.
Now, blockchain is not that simple. I repeat. Bitcoin (seen as a precious — or scarce “coin” is much easier to understand as a concept). Blockchain — the technology that governs and organizes crypto transactions is another matter. You need to immerse your efforts into it, forget most of the economics you learned in business school, and stay practical and open-minded while you learn. And that’s exactly what I did.
What I learned was some of the…