How to buy Bitcoin

You can only buy Bitcoin once in your life. You are going to make your homework and buy some coins with the intent to hold them for at least several years. They will (probably) eventually increase in value, so buying more some time after would not make a difference to your balance.

Unlike popular ponzi schemes, such as social security, pension funds and modern stock market, there are no dividends: you cannot earn more bitcoin by holding bitcoin. You can only sell, in which case you can get something useful back, but you would have to give your bitcoins to other people. The amount of bitcoins you have will only decrease.

People who understand that are rushing to buy as much as possible to have a better starting position. Because when you go from zero bitcoins to some bitcoins, that’s all you are going to ever have. This also explains all the insane level of attacks on Bitcoin in 2017: big money comes in and has only one chance to buy as much as possible, hence all the drama attempting to slow down the price while Coinbase signs up one million accounts per month.

There are three caveats, though.

First: most people would learn about bitcoin when its price has just increased rapidly and has a large amount of short-term speculation in it. They will buy at $1000 in 2013 only to witness the price sliding down to $250 in 2015.

Second: you have a lot of personal responsibility with Bitcoin. You can lose it in million different ways if you are not careful — hackers can steal it from you, your wallet provider can defraud you, you can “invest” in some “crypto currency” etc.

Third: an attempt to create a new kind of money is not a matter of technology, but a purely cultural phenomenon. Any money has value because many people are simply willing to hold it in their pockets. Technology is only there to provide plumbing for the shared hallucination, but does not actually induce it. If you do not believe in that cultural shift or do not support it, by all means you should not buy Bitcoin.

Nov 26   bitcoin