Question Checklist Before You Buy Bitcoin
Table of Contents
- What you still may do.
- The Risk of Rushing into Bitcoin.
- Question Checklist Before Buying More Bitcoin.
You May / Actually Highly Recommended
- Download a bitcoin wallet and note your public and private keys.
- Mine bitcoin.
- Participate in airdrops, faucets, giveaways, and other free stuffs.
- Become a merchant that accepts bitcoin.
- Have channels for exchanging bitcoin whether peer-to-peer, centralized exchange, or decentralized exchange.
- Buy maximum $10 of bitcoin.
The Risk of Rushing into Bitcoin
The risk is from yourself. If you are not mentally strong enough, you will not able to handle the volatile market. Tomorrow, it may rise by a thousand dollars but the next day may drop by two thousand dollars. You will become like the FOMO losers who buy when the price is high and sell when the price is low especially if you are here to get rich quick. When people asks you why you buy bitcoin and you only answer "to get rich" they will eat you alive.
Question Checklist Before Buying More Bitcoin
In 2 days the bitcoin price crashed from around $9000 to $5000. Have you learned your lesson? This is a question directed not to professional traders, supporter, or technologist, but to you who are only here to get rich quick. Therefore, here are some questions I recommended you to answer before diving into the market again especially for you who haven't dive into the market but considering.
1. Do you know how the current global monetary system is created and how it works?
- To understand the significance of bitcoin, you need to know how the current monetary system works.
- How is your money created?
- Where does it come from?
- Who controls it?
- You at least need to know the Bretton woods system in 70s and how it was replaced by the freely floating fiat currencies. I learned this from Mike Meloney.
2. Have you studied some previous monetary crisis'?
- The fall of the Roman Empire
- 1873 long depression
Thomas Nast (1840-1902) https://commons.wikimedia.org/wiki/File:Grant_Inflation_Bill_Veto.jpg
- 1973 recession
- 1997 asian financial crisis
- Dot com bubble
- 2008 Banking Crisis
- Today's Venezuela, Zimbabwe, and you know what
3. Do you know why bitcoin was created?
- Other than its innovation, early bitcoin was created to free the monetary system from the monopoly of the central banks.
- At least from what I think based on the early message on the genesis block "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks".
- Go back to the past and go the inventors shoes and think why they decided to build bitcoin in the first place. Andreas Antonopoulos explains very well in his book and talk the Internet of Money, this is where my stance in bitcoin changes.
4. Do you know what bitcoin is and how it works?
At least watch a short video how bitcoin works.
5. Do you know the benefit of bitcoin?
- The novel blockchain technology which keeps the transaction history almost incorruptible.
- Borderless, open, and permission-less, not only it is open source but anyone can carry a Swiss bank in their pocket without discrimination and permission.
- Almost, decentralized, uncensoreable, and unconfiscateable.
6. Do you know the challenges of bitcoin?
- Whales, bitcoin wealth is currently centralized.
- Bitcoin haters.
- Direct competition against the Fed or central banks.
Until you understand them, you should not buy more bitcoin because not only you are leaving yourself vulnerable, your future actions will burden the entire cryptocurrency community and those who really needs cryptocurrency like the unbanks, the discriminated, etc. The best approach is to educate yourself first.