Mind = Blown (Finally!)

[Cred]

I first bought Bitcoin for $5 at the start of 2012 in a  small amount to 'experiment' with it. Being a computer programmer I could just about follow the proof of work concept and the block chain.

I sat on them for a few month until they were $20 and only then had the insight that they would make a damn good investment, even though I had been reading gold bug blogs like ZeroHedge for years. The anxiety over buying them vs the fundamental value is what convinced me it was a good investment (buy when other are fearful) but, of course, I hesitated and only panic bought some once I saw them on the news as they were headed up to $50 and I held back even then so my average price was $100 in the run up.

Only after 'thinking' yes they are money for 5 months did I actually get the Mind Blowing moment of clarity and 'BELIEVED' they are money. As http://www.forbes.com/sites/jeffbercovici/2013/04/29/big-vc-says-bitcoin-is-gold-2-0-its-a-huge-huge-huge-deal/ says, it really is like taking the red pill. Everyone else just seemed to be in another economy and paper money suddenly seemed a bit worthless.

If it took me, a computer programming economics geek who has tried the odd dubious substance that long, how long will it take a while for the rest of society to wake up?

The thing that hit it home on top of a number of other things was the realisation that even gold bugs are in a state of cognitive dissonance and denial because they are so trapped by the belief that gold is money. Once you see that money is whatever makes it easiest to pay for a transaction while maintaining a proof of work (store of value), it becomes blindingly clear. When you see the total value is still only $5 billion and know Gresham's law it still is the best 'investment' in the world, even if you see it as a gamble with a 50% chance of double or nothing you would take that bet.

The queue's for the Bitcoin machine in Canada is a slow motion bank run that most people aren't even aware of.  Jim Sinclair is right about getting your money out now, he's just clueless about where to move it to.

Proof of work + fear of something you don't understand + Gresham's law + Cognitive dissonance = Way more money coming our way.

[1713937340]

1713937340

[1713937340]

1713937340

[1713937340]

1713937340

[1713937340]

1713937340

[1713937340]

1713937340

[1713937340]

1713937340

[lucaspm98]

Yup, soon enough we will be looking back and saying "Wow, I should have bought every bitcoin I could while they were under $500. I would have made a fortune!"

[tutkarz]

my advice is always to buy just one bitcoin because soon not many people will be able to afford even that.

[Casino Gambling Guy]

It now makes me laugh when I bought my first round of bitcoin at $210 and then how upset I was that thirty minutes later it was $190. This is chump change compared to where the future will take the price. I now buy bitcoin whenever I have extra money without even caring what the price is. Anything sub $1000 is a bargain in my eyes. I'm either blind and stupid or just another brilliant bitcoin visionary. Only time will be able to answer that one for me.

[LiteCoinGuy]

...
The thing that hit it home on top of a number of other things was the realisation that even gold bugs are in a state of cognitive dissonance and denial because they are so trapped by the belief that gold is money. Once you see that money is whatever makes it easiest to pay for a transaction while maintaining a proof of work (store of value), it becomes blindingly clear.

good post. i actually think that you should always have an open mind and try to have no dogma on one thing. i like gold, but then all other stuff in the world (stock market, cash, houses, etc etc) is "stupid" ? no.

(and also use BTC as a medium of exchange  )

[jubalix]

you need quite a mix of skills to understand bitcoin, eg fraction reserve banking, CRR, and IT, programming and crypto.

It was only because I had actually studied fractional reserve banking and the Law of banking, programed and use extensive cyrpto as well as fabbed some chips from scratch, when I heard about that last point asics were being made I purchase btc on that same day.

I can fully understand your point it is really hard to understand as 99.9% of the population are used to state issued currency. You have to explain that individuals should have the right to issue currency its just too hard for them to comprehend.

[Rupture]

Should be interesting to see if btc ever ditches it's fiat ties altogether.

[franky1]

on an episode of "the goodwife" the character mentions buying A bitcoin for $8.

i cant wait for the episode in the future where the story is brought up again and she says she now has atleast $460 just by leaving it and forgetting about it.

[marcotheminer]

Aquire 1 bitcoin while you still can and sit on it!

[Gabi]

You have to explain that individuals should have the right to issue currency its just too hard for them to comprehend.

That should be showed in the bitcoin client. "You have the right to issue currency"

[kwest]

You have to explain that individuals should have the right to issue currency its just too hard for them to comprehend.

That should be showed in the bitcoin client. "You have the right to issue currency"

I wouldn't mind seeing that on a real coin, but in latin: "Habes pecuniam ius constitutum"
And for anyone that actually knows latin; if that's wrong - blame google.

[Phinnaeus Gage]

on an episode of "the goodwife" the character mentions buying A bitcoin for $8.

i cant wait for the episode in the future where the story is brought up again and she says she now has atleast $460 just by leaving it and forgetting about it.

The episode could start out as Alicia needing a million dollars quickly for ?. Everybody she goes to either doesn't have it or some reason won't give it to her because of the nature of what it's needed for.

At the eleventh hour, a note is found in a pile of forgotten papers. It's from Dylan Stack. The note consists of the following:

BA: 1SN1tYftBoHH4haH1me2gUttHichyo1d
PW: TT030109CoBoSBfB

Thanks!

Dylan Stack

[zachcope]

Thanks for this post. I can really relate to what the OP has written.

Initially i thought bitcoin was great because it is deflationary.

Then I started to see the benefits of a pseudo anonymous currency.

After that I started to understand how the international distributed nature of the currency could really help the world trade.

Finally I started to think about Keynesian economics and how multinational corporations, expectations of inflation and institutionally corrupt politics and banking has developed. This 20th century model has run its course.

We are now seeing the 21st century economic models develop. Why now? Because unnecessary consumption should not be the goal of the global financial system. Because individuals need to share ideas and skills across boundaries in the same way only the multinationals could. Because of the internet. Because of China, India, Africa, South America. Because we can. Because of Satoshi. Because of Bitcoin.

[jubalix]

"You have the right to issue currency"

"The inalienable right to issue currency"

"Personal and inalienable right to issue currency"

hmm not a bad slogans

"freedom of currency competition"

"issuers rights"

"fiat freedom"

and by right, I mean as extensive even to "counterfeit" as this proves that currency is useless anyway.

[beetcoin]

you guys are a bit too optimistic imo. there is more good reason to believe as you do, but there is also good reason to think otherwise.

[didjaydisteele]

you guys are a bit too optimistic imo. there is more good reason to believe as you do, but there is also good reason to think otherwise.

IMAO.

[Cred]

One other thing on Zerohedge recently was that someone had gone over the history of money and noticed that there had been a revolution in money roughly every 40 years. I can't find the article to link it but we are overdue for a correction to the closing of the gold window in 1971. Bitcoin is it.

Also FOFOA's blog is very interesting if you read the Another: thoughts about gold suddenly being revalued a lot. I also read a blog comparing the ages of history to a battle between debtors and savers and one in which the debtors have been winning for quite some time. (Yes I read a lot of this stuff)

Clif Droke writes a lot about a Kondrotief Winter in 2014 and right now there is the lack of risk awareness and complacency that was around before the 2008 crisis with everyone desperately seeking yield with no compensation for risk, thinking the FED will make it all better.

To me the FED is pushing against a wave of deflation and pushing harder and harder. In my analogy that is like trying to put a chock in the San Andreas fault. You're going to get a Minsky Moment when it all goes horribly wrong.

To me BTC is less risky than all that.

[rayfloyd]

I started mining back in february (30$) as an experiment, I bought a 5850 and mined with it, for fun. By the time I got my first bitcoin the price was up to 70$ and I thought it was a good price to sell at. About a week later it was 250$, it was at that moment I realized the potential of a bitcoin. I've hoarded since then.

[newsilike]

Same goes for me I brought like 1 and a half bitcoin when they where at ~120€, I cancelled the transaction unfortunately as the price was dropping at the moment (I wasn't thinking rational in any way, I was emotional, fear came up and I just cancelled the transaction on bitcoin.de).
Lost track of bitcoin for  a few months, at 200-250€ I did massiv research about it and brought some bitcoin with strong belive, and a clear objective view on it, even today I wasn't too worried about the big drops. You just learn to see what is truly going on, all these emotion driven panic sells, so stupid

[mgio]

damn, I gave my ex-gf 2 bitcoins last year when they were only like $15 each. Now she is rich!