Like many biopics of experts on bitcoin or cryptocurrency, these stories often start in the woods predicting some apocalyptic disaster which would erase the credit record or sums of money in everyone’s bank account. My story was different, I just happened to be in the woods talking about bitcoin with my friend PinkyAndTheChain who had already invested. Most of the time, I was trying hard to focus on the oddly shaped dirt path which cut through the massive trees and formed a trail as we hiked through the woods of New Jersey - which boasts a lot of greenery. There were five of us mixing conversations between groups and sometimes unifying into a mass discussion. Frequently, these discussions would gravitate towards our investments. PinkyAndTheChain worked in technology same as me, but more on the design side. I wanted to know more about his experience with bitcoin. By default, as a person, I’ve been fortunate or unfortunate enough to put my manners aside and continue to ask questions when something peaks my interest. He was kind enough to indulge me deeper and deeper into this rabbit hole which blossoms into a story of early adoption and significant risk.
It was summer of 2014 and bitcoin was making its usual roller coaster fluctuations between $500 - $700 all season long. I didn’t want to invest. Not because the price was too high, but rather I didn’t believe there was a future. I felt it was too new, too early stage, and hardly anyone knew about it! So, I started asking my questions - mainly about use cases. I was quick to talk about the inefficiencies of banks. PinkyAndTheChain agreed and mentioned, high fees, and lots of minutia when transferring money across international lines as examples. This was all true, but this was also all what we knew till date! Was there a better way?
Let’s pause to think about the Internet. I know it’s cliché and most people compare the Internet revolution to the bitcoin/blockchain revolution. The Internet capitalized on communication, for sure. For example, email - and thousands of other mediums - that allow you to communicate instantly with someone on the other side of the planet crossing international borders in nanoseconds. That was revolutionary. Could bitcoin change our lives in just as much of a profound way?
The question itself starts to challenge your beliefs and values about a system which billions of us are a part of. Banks are controlling how we store our hard-earned money so that they can determine what is ‘best’ for us by advertising investment strategies, or giving us a high (not so high) rate of return, or even requiring a minimum balance in our account so they don’t have to charge us fees to hold on to our money. Basically, we are trusting 3rd party organizations to make decisions about the money which we worked hard to obtain and secure. Philosophically you could ask yourself if this is trust or totalitarianism. Many articles regarding crypto are focused on this topic alone.
Fast forward to Winter of 2014 and I muster the courage to ask Ben a question point blank. “Should I invest in bitcoin?” At the time it seemed like a foolish question, but in retrospect, it was really more of a philosophical one. Perhaps that’s why I was asking him. By February of 2015 I had made up my mind and was going to buy bitcoin. It was very exciting for me. I felt like I was on the cutting edge as a significant risk taker. However, intent is very different from execution. To start this exciting adventure, I would need a little technical expertise. By that time, the price of bitcoin had dipped to $250 which created the perfect chance for me to enter into the great nebulous world of crypto. I graciously invited PinkyAndTheChain over to my place to walk me through the process. You could only learn so much from the Internet in those days about how to buy digital currency, not to mention where to digitally store it so that it’s secure, and finally how to access it to pay for that late-night ice cream craving or potentially something even more devious. PinkyAndTheChain came over with a smile on his face. Maybe he was excited that another person was joining the bitcoin community, or maybe he was finding out that there is a gap in knowledge which existed for those who wanted to become bitcoin owners but didn’t know how. Upon arrival he started talking to me about passphrases, private keys, digital wallets, cold storage, hot storage, and many other things. I was so overwhelmed! Therefore, I said let’s do this together, and we did. He was patient as we progressed through the steps of me creating a digital wallet and initiating my first bitcoin transaction by linking my bank account. I wanted to make sure I understood what I was doing so that I could manage the wallet on my own after he left, so I sucked every last ounce of patience out of him. We made a pact that night, intending to purchase pizza with our bitcoin at a local pizzeria. Alas, to date PinkyAndTheChain and I have not taken each other up on our offer to buy each other pizza with our bitcoin, but I hope that day is still coming sooner than later.
In summary, I don’t care what the price is, as long as the technology gets used in a way that benefits mankind into the future. Since then, I have branched out into many other cryptocurrencies and done my own self-directed research about the blockchain space. Its use cases and applicability continue to grow daily. I’m eager to find out how the financial services industry will evolve by the talented and passionate community focusing on development. Finally, bitcoin is a protocol, and protocols take years, sometimes decades to develop so I do not think the story ends here. But, that is a conversation for another day.