Bitcoin and Blockchain are not dead. In fact, if you look at the history of bitcoin itself you see that it seems to have a feline propensity for multiple lives.
After being battered and beaten up so many times, why is bitcoin not dead?
I am reminded of a movie that I recently watched with my nine year old daughter from the late eighties called The Princess Bride.
If you happened to miss this one, you really ought to see it. It’s a very funny love story based in the the middle ages with pirates, kings, and lots of sword fighting.
The love story is between a farm boy called Wesley and Buttercup. The two are separated as Wesley goes off to sea and Buttercup presumes he is dead.
Years later, she is chosen by the local King to marry and she agrees although she knows that she can never love again.
Now this king is a bad guy and he knows that Wesley is not only alive but coming back to claim his beloved. Eventually, Wesley is caught and tortured to death by the King’s minions.
However, Wesley’s allies need him back alive to defeat the king so, after finding him apparently dead, they bring him to a magician who was recently fired by the King.
This former disgruntled employee of the King, played by Billy Crystal, says that Wesley is actually “mostly dead” but refuses to help unless there is a true meaningful reason to bring him back to life.
So, he pushes air into Wesley’s mouth and squeezes on his chest. What comes out of Wesley’s mouth is “true love”. The magician admits that this is, indeed, the most noble cause to bring him back alive but tries to get out of it anyway. But when he finds out that bringing him back will help him get revenge on his former employer, the King, he agrees and brings him back to life.
OK, so perhaps my metaphor is a little overboard, but just like “true love” was worth bringing back to life in The Princess Bride, bitcoin has been brought back from the brinks of “mostly dead” several times over because of what it represents.
What bitcoin represents is the ultimate storage of value. It has all the traits of gold but it’s better because it is portable and can easily be transferred from peer to peer thousands of miles away from one another without the need for a central authority like a bank.
Bitcoin is not hackable because it is decentralized and there is a finite amount making it “unprintable”.
Like many people, up until 2016, I didn’t get it and maybe I don’t entirely understand even now. However, this concept of eliminating the middle man is so powerful that I now believe that it CAN NOT be stomped out by anyone or any entity.
That powerful message, unfortunately, has been bastardized by many like Tai Lopez and other charlatans who took advantage of people with the idea of getting rich fast because of the explosive growth of cryptocurrency. The bubble created in the frenzy of greed and subsequent popping of that bubble has led to the current round of bitcoin obituaries.
That said, the concept of bitcoin and distributed ledgers in general, is anything but dead. It is actually in its early years and it is simply experiencing the growing pains of any new technology or concept that is new to the world.
There is value in what is being created and people will continue to make a lot of money in the future from it. They may do so through owning cryptocurrency or through creating the infrastructure surrounding this new economy. For example, collateralized bitcoin lending services have nothing to do with investing in bitcoin, but they make a lot of money through a fairly traditional lending business model. There is so much going on out there. It’s just important to make sure you are listening to the right people.
One of the legitimately smartest individuals in crypto today is Nic Carter. He is not a social media figure and he does not have a newsletter. However, for those at the highest levels of cryptocurrency investing and technology, Nic has a voice to which everyone listens.
So, despite the polar vortex sweeping across the cryptocurrency world, this week I urge you to listen to my conversation with Nic on Wealth Formula Podcast.
- Nic Carter’s background
- What’s is Coinmetrics
- How is Coinmetrics different than bits activity and other competitors
- Castle Island
- Blockchain, blockchain, blockchain…
- When will the impact of institutional interest reflect the market?
- Learn more about Nic Carter