Since I started trading, I have traded everything from Gold and Silver, US Shares and UK Shares, FX, Indices, ETF’s, Commodities.
I have spread bet, traded binary options and bought and held stock.
None of what I traded I have ever physically seen.
Now I am holding/trading a digital currency that I will never feel in my hands.
That isn’t a concern
I am certain that digital currency will be standard in the not too distant future and that the term ‘Adapt and Survive’ should be heeded because a change is a surely coming.
From Gold to Paper
Back in the 17th Century the Bank of England issued their first bank notes in exchange for gold deposits.
This was a BIG change. Anyone with any wealth in those days were offered the chance to go into a bank with their hard earned gold and exchange it for a piece of paper.
As confusing as that undoubtedly was back in 1693 the trend obviously caught on. The people of those days adapted to paper money over time.
That to me seems like exactly what is happening now with Bitcoin and digital currency.
Adapt and Survive
Some of us are and have adapted already… most have not.
Many/most people are still saying, “what on earth is Bitcoin all about”? So I buy something with my paper money [fiat] that is worth X amount but I can’t see it???
As mentioned above, paper money was initially worth a certain amount of gold or silver but you didn’t see the gold or silver once you had your paper note.
Now you are buying a digital token with paper money. The transitions are very similar in reality.
As much as Bitcoin and Ether have risen in value, I think most people actually forget what it is… A Currency that you can actually spend. I always get the feeling that it is more likened to a stock or commodity that has risen in price. The fact is it is far more than that.
Gold Banned in The US
US citizens were banned from owning Gold in the US in 1933. The ban was uplifted in 1974.
It lasted… but not for long in the grand scheme of things.
If the US or any other country tries to ban Bitcoin and or digital currency, I really don’t think it is going to last. In fact, I don’t see how it could work?
We are all going to need to adapt to survive into the future. That has always been the case. Why should it or will it be any different nowadays?
Of course certain countries are going to be against a decentralised digital currency like Bitcoin because they are losing control of what has always been controlled by them… fiat currency. Controlling the currency has meant control of the people.
But not anymore.
Bitcoin in the Press
Every correction and consolidation Bitcoin sees [that is totally normal] is labelled a crash in the press. But we all know, as the press do that price never rises in a straight line.
Yes, it must be tough if on traders if you have bought leveraged positions in Bitcoin… OUCH.
But for people looking after their own wealth, who have ETF’s or Bitcoins in their own personal wallets, it is just part of the overall package. And most of us know we should take what the press say about Bitcoin with a pinch of salt.
If you are still on the fence with the whole digital currency thing, then at least do yourself a favour and get a wallet and start to learn about it and how to use it. Even if you are not looking at it from an investment point of view
Adapt and survive… or get left behind. The choice is yours
If you have already purchased some digital currency as an investment, then just hold tight.
“Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting.” Jessie Livermore