They are roughly three types of people that buy cryptocurrency:
Traders
HODLers (a variant of the above)
Cryptocurrency users
This is a good way to approach the problem. I shall use the same opening (Thank you, Vladislav). But the remainder of my answer is different…
I will address #1 and #3, and then return to #2…
#1: Speculators (short term) and Day Traders
For these individuals, there is nothing to “get”. Because the do not plan to buy and hold, they perform a technical analysis of trends and recent news events. They do not research the fundamentals, nor believe in the underlying technology.
(Incidentally, technical analysis is a fool’s errand—the result is either dumb luck or a total loss).
#3: People & Companies who buy or sell with Bitcoin
What about cryptocurrency users? These are individuals and businesses that use Bitcoin to buy & sell goods and services, pay debts, compensate staff, purchase raw materials. We are still very early on the cryptocurrency adoption curve, and so all of the users who currently accept and spend Bitcoin probably “get it”, but they don’t really need to… They can accept Bitcoin, but demand that their payment processor instantly convert revenue into fiat currency. So, for category #3, it doesn’t matter if they get it—but most of them probably do!
#2: Long term investors
Here is where it gets interesting. As you suggest, these individuals have an intuitive recognition that something tangible and significant is brewing. They “get it”. But what do they get?
(I have not linked these “get it” bullets to explanations or justifications. If you want supporting statements, check my recent Quora answers. Each point is addressed in my answers)
They recognize that Bitcoin is backed by something more tangible than Dollars, Euros, Yuan or Pounds, even though it lacks intrinsic value or a redemption guarantee (the dollar has neither)
They recognize that Bitcoin will not lose to a better implementation—even though it is easy to copy, permissionless and open source
They recognize that Bitcoin does not facilitate criminal activity (a popular, but false conception)
They recognize that Bitcoin cannot be stopped by legislationThey recognize that Bitcoin is good for governments, even though it spells a day when governments will lose control over their own monetary policies
They recognize that cryptocurrency does not interfere with a governments ability to tax, spend or enforce tax collection
They recognize that even if Bitcoin never becomes a currency, it is still likely to become the world’s ‘reserve’ currency.
They recognize that even if Bitcoin never becomes a store of value, it will still displace payment, gift card and credit instruments. And because of a capped supply, this will create a rising, long-term supply-demand value.
Incidentally, Bitcoin investors harm the ecosystem. (Yes! We are all hampering our goal!) Our activity retards the day that Bitcoin will gain the traction of critical mass. That’s becuase fungibility and stability (two necessary components of money) require that the fraction of trades driven by purchase, sales, salaries and debt settlement far exceed the fraction driven by traders and investors.
RE: Musing Posts