I found a website about two years ago that I wanted to buy a special gift for my friend from, but they only accepted BitCoins. I had no idea what bitcoins were at the time and I really didn’t care, I just wanted to buy this thing for my friend. I then started learning a little bit about bitcoins and how you exchange US dollars to Bitcoins and it was a long confusing process that I never really wanted to go through again.. That is.. Until the day I looked into my bitcoin account a year later and saw the change left over from my gift purchase (about 14 US dollars) was now worth a little over 500 dollars! Before I get to this part of the story, you must know that all of this was entirely by accident. Gather around the campfire for a little one on one with Aesop 2.0
Shortly after I got that gift for my friend, I violated my probation and had to finish an 18 month prison sentence in Desoto Florida. My original charge that put me on probation was possession of marijuana over 20 grams. Its pretty crazy too considering the time period I was in there Washington and Colorado legalized the stuff for recreational use. I remember being so bitter the moment I saw that on the news in there at 5 a.m waiting to work with the ditch squad on the side of the highway. Chain gang, baby! Chain gang all the way! I’m angry with the legislation, but I’m also angry with myself for being in that position in the first place. Anyways, I digress..
When I got out of prison in February of 2013, my friend was telling about this Bit-Coin thing and how the value of it went through the roof. The were worth something like 120 dollars per bit-coin. That’s when I remembered I had bought some a year prior to that for about 3 dollars a piece! I knew I had some change left over, but I didn’t know what my account name or password was to my bit-coin wallet. I finally got access to it after a few hours of piddling around with some things. I will write some more articles in the future based on the success of this one about bit-coin wallets and other things tied to bit-coins like bit-coin mining (very interesting concept) and trading from different exchange platforms, but remember, that is only if this article gets any sort of following to it.
I finally got into my account and saw that my 4.5 bitcoins were worth a helluva lot more than I paid for them. I think it was a little over 500 dollars. I have traded my bitcoins since and gotten more value from them so I don’t remember the exact number, but that is definitely a good ballpark number. I guess it really isn’t that important in the big scheme of things. Being involved in the bit-coin at all is what is important. The potential of the bit-coin and digital currency across the board is incredible! Lets look at some numbers..
I got so excited and started doing a bunch of research about digital currency. How it started, what exactly it is, and more importantly, how I could forecast its value. I read about what important Economists are saying about the bit-coin in terms of what it is being used for and why.
The whole idea is that this bit-coin is a decentralized currency with a cap on how much is produced. The number of bit-coins will reach a limit once 21 million of them have been mined. Economists say this could be the next standard form of currency because its decentralization creates a totally free market system and it is scarce. Because of this very reason, criminals use it to launder money through completely private transactions. I read about this in a Business Weekly article while I was in prison in October 2012. Apparently, a lot of Iranians use this for criminal activity and to undercut the banks exchange rate of US dollars to the Iranian dollar.
If we look at the scarcity numbers alone and we take into account this may be the next standard form of currency, lets compare it to another scarce thing, say, gold. Based on some rough calculations indeed, there is definitely more than 10 billion ounces of gold present in the world based on that link’s calculation from an authority site. Right now gold is worth about 1350 per ounce. Compare that to the bit-coin and its scarcity and you can see that the bit-coin could potentially be worth substantially more if the entire world did start using the bit-coin as a standardized currency. Here is an image of the price history compared to gold of the bit-coin since it came out:
Since the bit-coin, many other digital currencies have popped up all claiming different things for different reasons. A very interesting type of digital currency, in my opinion, is the Peer 2 Peer Coin (PPC) because of its current low value and high volume with the added benefit of being way more secure with regards to hackers than the BitCoin is. I have actually been trading all my bit-coins against PPC coins since February and I have just about doubled my money. I dont even know very much about trading either so that just adds to the cool part of the story. Some people had way more coins than me that they forgot about and came back to their account to see 800,000 dollars worth of bit-coins in their account. There is a really interesting article about 5 people who made millions off bit-coins here: Bit-coin millionaires
Anyways, if you all would like to know more about bit-coins from this site because you found this to be an interesting read, all I ask is that you share this with your friends. I can’t keep an updated blog if people are keeping all this information to themselves. Also, let me know in the comment section below, what you would like me to write about next regarding Bit-coins. I know a really cool way that earns me 80 dollars everyday consistently that literally anyone can do right now if they just take a little bit of time to learn about these new digital currencies. Let me know if you would like to read about that.
JoeWee signing off now. Happy trading! 🙂