What is Bitcoin and why should I care about it?!

 

My BackStory

My quest for this answer started roughly three years ago in 2015. I was a financial junky who was always on the cutting edge of financial information! Bloomberg Radio was my “Spotify” and the Federal Reserve was my “artists”.

I was a recent business and finance grad, and ALL I cared to talked about was MONEY! I was probably not the ideal guy to go on a date with because sooner or later (maybe about 3 sentences in a conversation ) I would begin to ask questions about money, or the financial markets, or your thoughts about economics!

Yap! I was that guy! Being that most people would rather talk about DEATH, POLITICS, or RELIGION, according to a Wells Fargo survey, before talking about money, I was definitely setting myself up for failure!

Not Happy With The System

So why was my knowledge about money important in the process of discovering what Bitcoin or cryptocurrency is? Because as a finance junky, I learned a great deal about the value system of our financial system, and I have to say, unfortunately, I was not pleased with how our financial leaders or “financial authorities” manage our monetary policies and financial system. SO much so, that in my business ethics class I wrote a Memorandum to the president at the time for a class project discussing how the mismanagement of our financial system is negatively affecting corporate governance, which has a ripple effect on the workforce and society.

It was because of this very reason of being sick and tired of hearing about financial authorities failing to enforce stricter measures on banks and other players in the financial system, that had me wondering if there could be another solution to our monetary policies!

It was around this time I stumbled upon Bitcoin!

 

My Podcast Interview

So now what is Bitcoin? And is it the solution to our monetary woes? Well, I’m not going to go that far; however, I sought out local bitcoin enthusiasts and influencers in my network to help me answer these questions. Fortunately, I was able to get a response from Russell Castagnaro, a bitcoin enthusiast and Founder of Wampei, which is a platform that allows consumers to use cryptocurrency for commerce, and Adryenn Ashley, a Blockchain influencer who has held the title of being the 1 women in blockchain in the world. She has a dating app called Loly that matches based on sexual compatibility rather than simple geoproximity and photo, leading to better experiences in real life – not endless messages that lead nowhere.

They agreed to do a podcast with me in which we talked about various things people should know about Bitcoin and cryptocurrency.

Here are the 5 main things that I gathered from them in my interview:

5 Things The Average Person Should Know About Bitcoin

1)CryptoCurrency: The Future of Commerce

Question 1:

Caleb: Why should the average person know about Bitcoin and other cryptocurrencies?

Russell: Cryptocurrencies will be what powers the future economy, because electronic payments and electronic cash is the way things are going in the future.

Adryenn: Because it allows peer to peer commerce, which can enable people to start creating their own economy without needing a bank.

2) It’s more secure than your Bank!

Question 2:

Caleb: How is trust built through Bitcoin or Cryptocurrency?

Russell: Trust is built because every transaction done by bitcoin or a digital currency is traceable through an open source ledger called the Blockchain.

Adryenn: What is written to the Blockchain cannot be changed retroactively. It therefore creates certainty and immutability.

Note:

Although transactions are visible, they are all pseudonymous, no personal information is connected to the transaction, therefore, protecting the individual’s identity

3) It Creates Accountability

Question 3:

Caleb: What is one of cryptocurrency’s greatest value proposition?

Adryenn: It creates personal responsibility between parties.

Russell: It eliminates the possibility for fraud because the transactions are not going through multiple hands.

4) You Should Not Speculate With Bitcoin: It’s Long-term

Question 4:

Caleb: Is Bitcoin an investment opportunity?

Adryenn: You should never go all-in when investing in Bitcoin or cryptocurrencies. You can have a percentage of play money to invest, preferably 5-10%. But it should be used for just that, play money…Especially if you’re a passive investor.

Russell: You shouldn’t invest in bitcoin anymore than you would invest in any other present currency if your horizon is not 5 years or more.

Disclaimer: Both Adryenn and Russell are not licensed financial advisors, and thus are not qualified to give investment advice on this topic. They are just speaking from their experiences. Please reach out to a licensed FINRA regulated advisor if you have any investment questions for your specific situation.

5) It’s Fast!

Question 5:

Caleb: What other key attributes does Bitcoin or cryptocurrencies have vs the current system?

Russell: The fastest you can transfer money in the traditional system is generally two business days, whereas with Bitcoin it’s in your custody right away.

Adryenn: It streamlines investment transactions and brings liquidity. Additionally, it allows international transactions to be completed in a matter of seconds, instead of going through the wire transfer debacle that can take days.

Cryptocurrency Is Money For The People Not Governments or Banks

The podcast interview I had with Russell and Adryenn confirmed my view that I had about Bitcoin and cryptocurrencies. Because one of the greatest issues that I had about our current financial system was that society, its main participators, do not get to call the shots on how it should work. It is very privatized and controlled by a very few groups of people who do not have a proper understanding of the true financial issues that the everyday individual faces. Whereas Bitcoin and cryptocurrencies are not a private system – it’s an open source system – and does not require any central authority. In fact, it’s peer-to-peer, and it was because of this realization that I knew cryptocurrencies are a paradigm shift on the control of money and how money works and will not be liked by any centralized authority. Which is why it has had so much negative press from many of the biggest financial banks and authorities.

 

To learn more about what Bitcoin is, I recommend reading Satoshi’s White Papers. It’s a very simple 12 step manuscript written by Satoshi Nakamoto, who is reported to be the anonymous creator of Bitcoin!

Additionally, to hear the full power-packed interview stay tuned for the podcast release!

Subscribe for future blogs, vlogs, and podcasts coming from the WalletGyde team tailored to help you be financially empowered and achieve your financial goals!

Want to learn more about other money concepts?

Check out this blog written by Jordan Youngblade, Walletgyde’s mind-body-wallet coach titled, You Don’t Equal Money.

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