It is no longer news that technology has been the major driver of change in our world today. Every aspect of our lives is being disrupted by one new technology or the other. Bitcoin is leading the world to move from fiat to digital currency.
Nevertheless, the level of acceptance of this disruptive currency has not been commensurate with its value appreciation. Bitcoin has overcome a lot of setbacks which many skeptics predicted would make it go into extinction.
It has also made people overnight millionaires. If you are among the people who are still skeptical about Bitcoin, this is for you. We curated 3 beliefs that might be holding you back from buying Bitcoin and how you can overcome them.
Resistance To Change
Let’s suck it up and admit it – we humans are poor at adapting to change. You and I would rather hold on to our old obsolete tightly held beliefs even when we are presented with facts that are now outdated. For more than a thousand years the means of exchange have been physical materials. And since our brain is a result of more than a million years of evolution, resistance from a tangible to an intangible means of exchange makes sense.
But there’s a downside to change which has kept recurring through human history- resistance to change ultimately leads to extinction or antiquity. Digital currencies are here to stay whether anyone likes it or not, and the better you adapt to them, the better. Reputable firms across the globe like Goldman Sachs, JP Morgan, MicroStrategy, and Greyscale have accepted Bitcoin as a hedge against inflation and started investing in it. El Salvador has also adopted Bitcoin as its legal tender.
With time, more individual and institutional investors will accept Bitcoin as the new global medium of exchange. If you wait till then because of your inability to adapt to change, you would have lost a lifetime opportunity to become enriched by Bitcoin.
Since its inception, Bitcoin has been characterized by volatility due to a number of reasons. Some of them are decentralization (no central authority to regulate or control it), including mainstream media, governments, and rich financial influencers. However, most times, investors in Bitcoin always feel like walking on a narrow cliff blindfolded. Most people can’t deal with this uncertainty, so they stick with the fiat money they are familiar with. “Better the devil you know than the angel you don’t know.”
Bitcoin’s capacity as a store of value has been greatly distorted due to present value fluctuations. As a result, people fear for their financial security when they are presented with an offer to invest in Bitcoin. Honestly, Bitcoin is highly volatile. Its value moves up and down unpredictably. The fact that it is not linked to any reserves or centralized authority means that many cannot get their head around how it works or how they can profitably predict it.
However, there are time-tested and proven methods for handling financial currencies which also apply to Bitcoin. They include avoiding emotions or sentiments caused by market splurge, knowing when to hold/sell, diversifying your investments, etc. If you stick with these basic principles, you will be able to maximize Bitcoin to your advantage. Another thing is that as more people adopt bitcoin, it will continue to stabilize.
We must educate ourselves about the capacity of Bitcoin. There are credible, no BS sites that will give you undiluted information on the internet if you are diligent enough to find them.
To many people, Bitcoin is still a beast yet to be tamed or understood because of the complexity of the technology backing it. If you randomly stop someone on the street today and ask them to explain bitcoin, many people will be clueless on what to say or even call it a scam. Due to its novelty, many people are yet to fully understand what Bitcoin is, how it is mined, how it is different from other currencies, and its benefits. Well, you shouldn’t be too surprised, many people are still skeptical about online payment gateways.
A major part of the misunderstanding rampant today is because of the narrative spread by the media. If you pick up your phone and google bitcoin/cryptocurrencies, most of the news that’ll rank high are all the wrong things about bitcoin (and other altcoins.) Headlines in newspapers about cryptocurrencies are mostly negative news and all the reasons why you should have nothing to do with them.
But that’s half the truth. The benefits, improvements, efficiency, and potential of Bitcoin never make it to the headline section of mass media. Thank God for the internet, though. We can get all the necessary information we need to educate ourselves about the capacity of Bitcoin. There are credible, no BS sites that will give you undiluted information on the internet if you are diligent enough to find you would be better off with your investments.