Bitcoin – The economy razor?

Well, we already have heard about Bitcoin one way or the other. If not, feel free to read at least the splendid article introduction posted on Wikipedia. The concept of the virtual currency is not something new, there were attempts all over the Internet during its life but this one is the first try of being the core of decentralized decontrolled transaction based currency.

I remember the time I have no idea what Bitcoin is all about. A friend of mine asked me if I could help him open an exchange account in order to buy Bitcoins and so I did. To my later dissatisfaction I have not opened an account for myself neither did I bought some coins. If I were I would have earned hundred if not thousand fold of what I have invested by now. Started as an experiment (it still is, mind you) Bitcoin prognosis was bleak and its life deemed to be short and painful.

Alas it is still alive and kicking, the current exchange rate for US$ is 130 dollars for one Bitcoin. Even the bubble burst we have seen in the recent past did not diminish the virtual currency valuation in real world money. Now, you might think of getting rich just buying and holding the coins and sell it at a later time. This might hold the water and it might not – as with all the things in life, there are plethora of variables involved in the Bitcoin valuation including other guys and gals thinking of making themselves rich the same way. And what if everyone holds onto coins not selling until it reaches some magic exchange rate – the currency valuation will slowly rise due to sporadicly buyouts and slow sell rate. Finally when the exchange rate hits it will burst and fall due to sell orders of all the make-yourself-rich types. However this point is moot due to Bitcoin being used in the trade and barter throughout the world as I write this.

Bitcoin logo

In Crypto We Trust

So what is to do in order to not miss the bandwagon once again if you consider being to late to the show to reap the fruits of early adopters (you can still consider being on time, it takes some faith and luck to do so). Well, it is quite simple, try to think about what you have been doing if there were no banks, no money exchanges as that and no services taking money for work. I agree that this is quite hard to imagine in this time and era however this is exactly the state of affairs if you consider Bitcoin money and take that into equation. There isn’t much services taking Bitcoin for goods and there isn’t much exchanges taking Bitcoin for real world money and finally there are no banks as we conceive them taking Bitcoin as anything close to valuable (not even as short-term investment options). So we live in more or less Bitcoin-less world just waiting to be conquered, the low hanging fruit may be gone but there are plethora of ideas not even considered and you can take your pick.