Two Minutes on Bitcoin—May 26, 2020

Now and then I write two minute’s worth of thoughts on bitcoin. It’s my very, very brief commentary. I hope you enjoy it.

To really make the best decisions, you have to understand what’s going on around you. You have to grasp that larger world of which crypto is only a small part.

If you focus only on what’s in front of you, only on the day-to-day, you will not see the opportunities that lay far down the road. You’ll worry about things that can easily change and neglect the things that can’t. You’ll assume a problem is permanent when it’s temporary and assume temporary problems are permanent.

I do this. We all do this.

Perception is reality

On my Medium page and in my Crypto is Easy newsletter, I try to show you the world in a more informed and honest way. While I don’t have any great truths or wisdom, I hope to raise interesting questions or offer unique perspectives.

We all come to the world with our own biases, usually trying to justify our gut decisions with some sort of logic or rationale. Our beliefs make us take a certain position. Our circumstances make us seek a certain outcome.

In politics and social media, bias is crucial for gaining followers and clout. People love opinions. Facts? Not so much.

At this moment, you see a lot of contradictory statements from mainstream economists, financial analysts, and everybody else. They’re all looking at the same facts, but with a different viewpoint. In the cryptosphere, most people have only a very basic understanding of how markets work. Yet, they are considered experts.

Many of them worry about inflation, negative yields, government debt, unemployment, and many other problems. To be fair, those are real concerns, even if it seems like everybody treats them as another bullet in the “buy bitcoin” pitch deck.

For everybody trying to make a buck from “buy low, sell high,” now’s a good time to reflect on what’s going on around you. Many people are struggling and fearful. Others are way too complacent and ill-informed. Is this a time to gloat about every pump of bitcoin’s price? If so, what happens when we crash?

As the saying goes, bitcoin doesn’t care. It’s just computer code.

You decide why it’s valuable, no matter what the maximalists say, what today’s price is, or what meme is trending on Twitter.

What matters to you?

As bitcoin’s price goes up (or crashes badly), everybody will throw opinions at you.

Take it all under consideration but seek your own perspective. Otherwise, you’ll end up with somebody else’s thoughts, chasing somebody else’s goals.

Bitcoin’s value does not come from its price or any “intrinsic” properties. For every cliche about digital gold or freedom coins, somebody has another viewpoint. When one theory fails, another takes its place.

In the end, time will tell who’s right. While Twitter argues, developers and entrepreneurs continue pushing the boundaries of financial technology. Markets move. Progress comes. You don’t need to pick a side, you just need to pick a seat.

Relax and enjoy the ride.

Mark Helfman is editor of Crypto is Easy and a top writer on Medium for bitcoin and investing topicsHis book, Consensusland, explores the social, cultural, and business challenges of a fictional country that runs on cryptocurrency. In a past life, he worked for U.S. House Speaker Nancy Pelosi.

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