Due to its high volatility Bitcoin is classified as an investment. It's been known it needs time to mature and those who were willing to invest some cash in the project at the beginning or started mining are rich now. Not only bitcoin, but any cryptocurrency in general is an investment, a long term investment. Obviously not every currency is a good investment as are many factors influencing the evolution but that's another story for another day.
Since bitcoin and crypto is a hot topic, everyone is talking about it, news platforms are flooded with crypto news, you can read all kinds of stories each day. Some are funny, while others you can certainly learn from.
Use Cases For Cryptocurrency
When bitcoin was born, many were asking what they can do with it, other than buy and hodl. It was a legitimate question as if there's no use case for it, then what good does it make to invest in it.
The article above was published on November 23, 2013, about a month after the first bitcoin ARM was born. Looks like Subway was the firs business to accept bitcoin. The article doesn't say how much was the sandwich in bitcoin, but the chart below shows the price evolution.
That being said, transactions will be the backbone of bitcoin’s future. If you really want to support bitcoin’s long-term success, you need support bitcoin businesses by making purchases. Unfortunately due to the current volatility of bitcoin over the past year, many are choosing to sit on their investment and watch it rise and fall in value. source
This was written in 2013. This is what they thought about bitcoin and its use case back then.
Should Have & Would Have
These are words you see repeatedly now that bitcoin has reached its ATH.
That $10 salad I paid for in bitcoin at a French restaurant on the Lower East Side four years ago, would now be worth about $232.
The ice cream sandwich from Melt? It cost me $6.50 of bitcoin in 2017. That amount of bitcoin would be worth around $150 at February’s peak. source
People are regretting living off bitcoin in its early days. It's understandable how they feel if you look at the current market price of the token and take into consideration what the future can hold for bitcoin.
The same is valid for what is going on on Hive and Leofinance. Not long ago the only way to buy Hive was to buy bitcoin, then convert it to Hive. Since then bitcoin tripled (most likely) and Hive ... well, Hive may have got more valuable, but the growth is nowhere near bitcoin's growth.
If you're reading posts regularly on Hive and Leofinance you must have seen those reporting what they have been able to buy with their earnings. Users from countries in great economic difficulty usually do that as they have no choice.
In the early days of Steem, when the market price was as high as $8/Steem, some quit their jobs as living off Steem seemed a better, more profitable solution. Then we know what happened.
Is There A Way To Deal With The Roller Coaster Ride?
The truth is, crypto is not like fiat. Its volatility gives us a great opportunity to invest and hodl long term, but if you're living off crypto, you need a different mindset.
After 10 years of watching bitcoin market price going up and down we all know there's little to no chance of staying the same for long. If you need to spend it because you have no other option, then you have to let it go. If you can afford to sell when you think you make a nice profit and use it when you need it, even better. Otherwise it's just a torture.
However, I'm wondering how many of those early adopters and early spenders are holding bitcoin now and what was the market price they bought with the intention to hodl.
Posted Using LeoFinance Beta