Why I bought Bitcoin for the first time last week

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1 BTC = $17094.31 USD  (via Coinbase)
1 ETH = $1277.56 USD  (via Coinbase)
1 LTC = $76.88 USD  (via Coinbase)
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I thought it might be nice to share my experience going from someone who was vaguely aware of Bitcoin to an investor in Bitcoin.

  1. Notice bitcoin had hit $3,000. What? Last I paid any attention it was a few bucks. Time to look into this some more.
  2. Understand the global economy and how money works. Easy enough with a couple YouTube videos.
  3. Understand how blockchain works. Easy enough with just a few more videos.
  4. Do some simple math to examine the various possible scenarios for Bitcoin value. This just sets mathematical, common sense limits.
  5. If the value is below the mathematical limits, it is probably "safe" to invest. BTW, those limits change over time based on a number of factors.
  6. Look over the history of Bitcoin and how we got here today. Reddit and more videos filled in the picture.
  7. Ask smart friends what they think about blockchain and bitcoin. Ignore them if their opinion differs (just kidding, probably not a good idea).
  8. Think it over for a couple of days, do any follow-up research as required
  9. Post a thought on Reddit, to see what other Redditors think. Immediately regret.
  10. Make a leap of faith and buy. This was actually the easy part. All the evidence supported my action, so I just had to have the ovaries to commit.

I used Coinbase to buy some Bitcoin and Eth. I did not yet understand Ethereum, but I figured it can't hurt to buy one now and figure out what it is later (not a significant financial risk). Coinbase required a lot of personal information due to laws, but since I understood why, I pushed past my privacy concerns and scam fears. I understand Coinbase can crash, just like Gox. I get the risks. However, I have faith in the virtuous cycle that the idea of this currency produces. Smart people figure it out. Smart people invest in it. Now you have a global group of smart people who have a vested interest in seeing the concept succeed. That is a recipe for eventual success in my book.

So, I'm on the ride now. I invested more money than I can spare right now (I don't have paying work at the moment, but that is not unusual for my line of work). Comments and feedback welcome.

Footnotes:

I am aware of how wallets work and how to secure my purchase made through Coinbase.
From my YouTube history, here is what I watched, in order:

Global Economy:

https://www.youtube.com/watch?v=mQUhJTxK5mA

Blockchain:

https://www.youtube.com/watch?v=LZEHOlZY2To

https://www.youtube.com/watch?v=k53LUZxUF50

https://www.youtube.com/watch?v=810aKcfM__Q

https://www.youtube.com/watch?v=2iF73cybTBs

https://www.youtube.com/watch?v=_160oMzblY8

Edit: Minor formatting

submitted by /u/Jrsea
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1 CRYPTO

Crypto News & ICO Reviews

1 News - 247 News - 247 Bitcoin - 1 Search

BTC - BCH - ETH - LITE - XRP

Buy Sell Trade Crypto Here

 

Ticker

1 BTC = $17094.31 USD  (via Coinbase)
1 ETH = $1277.56 USD  (via Coinbase)
1 LTC = $76.88 USD  (via Coinbase)
Quotes delayed up to 2 minutes.

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