Why the Obsession with Bitcoin is Not Really about the Money

The debate on bitcoin shows no sign on easing. Beyond the insane price movements is a cultural movement that demands to be acknowledged. Bitcoin was introduced in 2008 during the thick of the global financial crisis. When Lehman Brothers filed for bankruptcy protection it ignited one of the most explosive periods in economic history.

Millions of people around the world were directly impacted by home foreclosures, business shutdowns and the loss of disposable income. While President Bush announced the $700 billion bailout another group of activists were birthing Occupy Wall Street.

There is still a great amount of mistrust of the traditional financial institutions. Millennials show a behavior and mindset that is more friendly toward consumer-finance startups than older generations. The mashup of banking scandals during the past eight years including Wells Fargo, Deutsche Bank and the Libor scandal have added fuel to the fire.

Social media enables people that previously could not interact to connect instantly with text, images, voice or video. The goal is be independent of traditional financial institutions and government control.

When you travel internationally and want to make purchases you have to repeatedly exchange currencies. I’m currently in Bangkok and have about 6 different types of fiat money issued by the governments of Singapore, Thailand, China, Philippines, Myanmar and the United States.

Bank fees for wire transfers are particularly burdensome for businesses like freight forwarders who conduct hundreds of monthly transactions. Bitcoin simplifies this process and saves money by eliminating these fees. That just increases bottom line profit.

Another factor not to be ignored is the power of the underlying blockchain. Already it’s use is being introduced beyond bitcoin and into medicine, logistics and even advertising.

In many of these introductions the blockchain tagline is mentioned “the technology underlying bitcoin”. This is a marketing bonanza for bitcoin because it raises brand awareness.This is evidenced in the online search queries. Currently there are over
3-million monthly searches for “bitcoin”. And the related searches include terms “buy bitcoin”, “bitcoin price” and “usd to bitcoin”. Do you see what is happening here?

The fluctuations are going to happen as with all currencies. But with the revolutionary support, social media and blockchain technology the global appeal for bitcoin is trending upwards.