The speculation as to why Bitcoin is over $10K is amazing. Humans doing what Humans do best. Drawing conclusions not on data or fact but on how they feel. A few million years of instinct and gut feelings now shared at the speed of tweets and "buy now" buttons on Coinbase and Robinhood. As an anthropologist I love it. However, before you #FOMO your July mortgage payment a few things you should consider.
Bitcoin, the New God
Somewhere on Michael Creadon's page I was explaining the surge in the price of #bitcoin is due to the faith of the crowd. #BTC isn’t a new religion; rather a new idol / deity / avatar to capture and convey the hope of people in despair.
Fiat currency isn't collapsing. #Faith, #Trust and a whole lot of adjectives in the confidence of politicians and political entities, as well as banking and finance, are collapsing. Humans know the system is unjust and rife with inequities, we just haven't figured out how to express that in words. So like the French, we turn to action. The French riot and burn over higher cost of living. We, you and I, we vote w/ our value. Lacking faith in the Government, more people are placing their faith in cryptocurrencies. Today, people are doing what Humans have done for millennia, following the crowd, seeking a sense of safety in numbers.
Why? When faith maketh the lord or currency, why not pray to all the gods, old and new, that you find the peace you're looking for in an encrypted medium?
The real question isn't why is Bitcoin over $10K. Bitcoin, like all cryptos and fiat currencies, has no intrinsic value. We can argue over that to no end so lets just jump to the end. In the apocalypse when you have 1000 dollars or 1000 Bitcoins and I have 1 live chicken. You know who has more "value"? They lady with the bottle of bourbon who can trade it for the chicken. Cause neither dollars or bitcoins have any value beyond a record of debt. Where as a live chicken is worth, a couple years worth of eggs.
Bitcoin's Real Value
Bitcoin's "real" value is as a vessel for faith of those looking for security. Bitcoin is a mechanism that Humans without actual value (folks without chickens, bourbon, etc...) can fool themselves into believing their faith is real. And that is the funny thing about "money". When you believe it has value, it does. When you believe in the "full faith and credit of the United States Government" or the "immutability" of blockchain, you feel safer in your decision to place your hopes, dreams, aspirations and even reason for being into that avatar of your faith. Bitcoin has value, for the same reason the USD has value and Peter Pan can fly. Because Humans believe in it.
Bitcoin is a Customer Service Battle of Faith
So, who do you think will win this customer service battle of faith and belief? #Fiat or#Cryptos? I dunno know. But its going to be an interesting ride. Last time we saw Humans flocking to the Church of Crypto was in December 2017, when Bitcoin passed $20k. Little did they know that the Church of Crypto was ran by the Wolves of Wall Street who pumped bitcoin futures with their right hand and shorted it with their left. This time around with the hype of Facebook's Libra Coin and the misinformation of the masses, what will happen? How will the faith of the "enthusiast", "hodlers" and "maximalist" be tested?
Again, I don't know. But I do like to gamble. So like many of the Wolves I belly up to this game of No Hold 'Em Crypto and recalling what a wise man named Kenny Rogers once said, "You've got to know when to hold 'em and when to fold 'em."
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About Samson Williams
Samson is an internationally recognized anthropologist and expert in Operations & Technology, Blockchain, Cannabis, cryptocurrencies, mobile payments, mortgage finance and organizational change management in FinTech.
Samson is ranked among the globe’s top innovative technology professionals for his cutting-edge research and applications in crowdfunding, tokenomics and digital securities. Samson is a professor at the University of New Hampshire School of Law , Columbia University and Principle consultant at Axes and Eggs. For business inquiries Samson can be reached at firstname.lastname@example.org