“Trusting the system”
Updated: Jan 26, 2022
Bitcoin has come a long way since it was created in 2009; it's just a matter of looking at the price range and how it’s gone up since then.
Many people invested in Bitcoin when the value was low. According to Coindesk, the price range of Bitcoin on July, 19th, 2010 was at 0.06 USD; and this past January, 8th, 2018, it was at $14 498.03 USD. I'm pretty sure those guys are more than happy now with the outcome... I call them the true Bitcoin believers; those who invested in the coins without any guarantee that this currency was real or not. They just took a chance on losing everything or making more than they ever imagined.
On the other hand, we have the people who, after realizing the popularity and the rising value of this coin, eventually decided to invest in it. Moreover, let's not forget people like me, that only two years ago heard of this coin. Therefore, in this blog entry, I would like to talk about these two last types of people; because even if you invested in coins after it became popular, or maybe just hearing about it now, these are the people that have the most trouble trusting this new currency system.
I still feel that the dark past of this virtual coin back in the dark web is not something that can be quickly forgotten. An article by the Washington Post from June 9th, 2015, states that "There have been warnings that the Islamic State would try to use Bitcoin to raise funds: The service has been used by drug dealers and pedophiles, so why not extremist groups?" In some way, this currency has been stigmatized for its past. These allegations may or may not be a problem for the future of this currency, but they definitely affect when it comes to winning over everyone into using it.
Even though humans have been able to adapt to different phases in technology, from beepers to iPhone; dial-up internet to wireless internet, among many others; all of these came with different processes. In an article published in the Huffingtonpost in 2017, the Chairman of the Federal Communications Commission, Tom Wheeler, stated "We are in the early stages of a technology-driven network revolution, unrivaled since the mid-19th century. Back then, the first high-speed network, the railroad; and the first electronic network, the telegraph; delivered a one-two punch that redrew the economic map, fired an industrial revolution, and even aided and abetted a civil war. Back then, coming to grips with such change was a decades-long struggle. We should expect nothing less this time around."
Maybe, we are not far from being able to adapt to this type of system. Nowadays, we all have checks, debit cards, or credit cards, so all our money is in paper or plastic. If I compare this to the Bitcoin system, it has its similarities; a person has a certain amount of money in their virtual wallet, and if we want to buy or invest to make a transaction, you need a key or, in other words, a password. The only difference is that this transaction does not have to be approved by any entity, like a bank, for example. When you make a transaction in bitcoins, it will be written down in a blockchain like a ledger, just like your bank transaction history.
What Bitcoin doesn’t have is a 1 800 number to call if you want to make a claim, and not even mention an address to talk to an executive. Why is this important? Once you make a transaction in bitcoins, there is no going back from there; you will not get your money returned.
However, not every aspect of the system is that definitive. Let's say you want to make a transaction to another part of the world. If you pay a fee, this can be done within hours depending on how much fee you are willing to pay; in a regular bank, this can sometimes take more than a week. I experienced this in a place I used to work in. A client bought a piece of artwork and wanted it shipped to the UK. We had to give the banks a swift number and, yes, the money got lost in the process. Just after 7 days the company finally got the transaction in their private account. At least in the Bitcoin system, you have the choice to pay a specific fee if you need your money wired urgently.
Hope you enjoyed it! I’m looking forward to reading your comments.