Dear Wall Street friend,
I write this letter because I like you. I know we are different, especially in how we look at the financial institutions that dominated the history of the last century, but we do understand where you are coming from. increase.
You are a smart and communicative person, and banks and managers have recognized your potential and provided you with a well-paid career and financial education in line with the fiduciary security system. Suddenly, I appear with an obsessive gaze, telling me that an anonymous individual has created digital money. In addition to being an unparalleled investment, it’s a technology that revolutionizes humanity and upsides everything learned from successful billionaire employers. ..
At first glance, it looks like a crazy person, but please be patient and read this letter to the end. I will write from the bottom of my heart.
This is not a definitive article to convince you why Bitcoin is your best investment at your disposal, or why it represents the greatest social turmoil of the century. My intention is to give some warnings and suggestions on how to approach this topic so that you can find a way down the Bitcoin Rabbit Hole.
Bitcoin is a threat to the financial industry
This may scare you, but nothing else. Bitcoin is certainly a threat to the financial industry as a whole. As Bitcoin adoption increases, the size of the entire sector, including funds, banks, brokers and investment banks, tends to shrink.
Don’t let this fact prevent you from gaining a deeper understanding of Bitcoin. Those who understand orange coins today are only a small part of the total population that will adopt this technology in the future. Even with the pessimistic outlook for the investment industry, the opportunities you see are so great that you quickly forget about the turmoil in the industry that employs you.
Bitcoin is not a company
Bitcoin is a weird beast, but it’s especially weird when trying to understand it through the traditional lens of analyzing income-generating assets such as businesses, real estate, and debt. Bitcoin is difficult to define, even for someone like me who has been obsessed with this subject for years.
My suggestion is to approach Bitcoin from a network technology perspective. Look for similarities in the development of the Internet, decentralized peer-to-peer networks like Tor and BitTorrent, as well as sea and air routes.
And, of course, don’t forget to study the history of money. Placing Bitcoin and fiat money on the evolutionary timeline reveals how dynamic this story is, more than central bank advocates would like to admit.
Bitcoin is a personal revolution, not an institutional revolution
Don’t look for the value of Bitcoin at major financial institutions or gurus. Its value lies in the anonymous people who consciously decide to participate in maintaining the Bitcoin network by buying their own home appliances and saving by buying a little Bitcoin each week.
This is quite different from what you are used to. In the world of trustees, names, names, job titles and institutions are very important and valuable agents. At Bitcoin, the opinions of Jamie Dimon, Warren Buffett, and BlackRock’s CFO are of little importance. What makes this technology inevitable is an anonymous, uncompromising, unstoppable minority.
Try to understand what this minority is thinking, what motivates them, how they interact with Bitcoin, and why it’s so difficult to stop them. please. The next time Charlie Munger gives his opinion on the issue, ignore it.
The technical nuances of Bitcoin are important
You may not be interested in understanding the difference between asymmetric key encryption and hash functions, and the difference between computation and predicate validation. It may also seem less important to understand the governance nuances of open source projects, the implications of soft forks, and the tendency of Bitcoin to avoid investing in hard forks. I understand you, they are specific ideas and not part of your daily life.
But know that these concepts make a difference, especially if you want to understand why Bitcoin is different from all altcoins. Bitcoin is affectionately called “Sitcoin”. Take the time to explore how Bitcoin works at a deeper level than the articles on the financial news portal. Some technical details are essential to understand the guarantees that Bitcoin offers and why they are unique compared to all the projects that exist in the “cryptographic” world.
Learn Austrian Economics
I’ve heard celebrities on Wall Street claim that Bitcoin has no more than reasonable “intrinsic value”. A few years after not understanding this “phenomenon,” I read a single essay by Friedrich Hayek and Ludwig von Mises by many economists with high degrees and working in finance. I knew that there was nothing.
Putting linear regression and derivative modeling aside for a while to focus on the ideas of Carl Menger and his disciples is of great value to the Bitcoin journey. I promise you won’t be a gold bug overnight, but at least you’ll understand that the term “intrinsic value” doesn’t make sense.
Everything will be better
This trip is not comfortable. Realizing that the investment industry (probably the strongest sector of the economy in the last 50 years) is about to be shaken, he realizes that many of the teachings of status-bearing billionaire bosses aren’t exactly the best in posts. Masu-The world of Fiat will hurt, but it will be okay. As I said at the beginning of this letter, you are an intelligent and communicative person. When it comes to Bitcoin dominoes, you will face one of the greatest opportunities in your life. And after the first horror, he promises that all that remains is inexhaustible optimism.
This is a guest post by João Grilo.The opinions expressed are completely original and are not necessarily BTC Inc. or Bitcoin magazine..