I wrote an article awhile back where I outlined some of the most common reasons traditional finance workers and investors seemed hesitant to embrace the blockchain and Bitcoin. While they admitted that the blockchain itself and the technology behind Bitcoin were impressive and disruptive, they seemed unimpressed with the tokens themselves. However, one of those individuals I mentioned in the previous article and a close friend of mine finally has purchased some Bitcoin for himself. He joins the ranks of many new investors who have had their interest piqued by Bitcoin’s price.
Bitcoin’s Latest Bull Run was too Tempting
While my friend -who is an investor- and I were having a few drinks the other night, he asked me how Bitcoin was performing recently. Usually he is subjected to almost constant texting from me about its current price, but I had been busier than normal with some projects and was unable to send my usual updates. During drinks, Bitcoin was trading at around $3800 -and at the time of writing Bitcoin is sitting at $4359-. My friend was completely floored when I told him this. Last time I texted him Bitcoin was at about $2700. He immediately fell silent and frantically tapped away at his phone.
“It’s performed that well this year?” He asked, barely able to believe what he was seeing, “fine, I’m finally buying some of my own.” Right then and there he made a Coinbase account and purchased some Bitcoin on the spot. Bitcoin’s incredible performance convinced a friend who did not seem into the idea of owning it as an asset, and he is just one of the many new investors into the coin.
Bitcoin is becoming more mainstream as an investment and form of payment more quickly than I had anticipated, but I am confident that this is because of how much it is now worth. But even with the excitement of new investors -my friend included-, they are also hitting some frustrating barriers to entry.
Barriers to Entry are Joykills
While purchasing his Bitcoin, my friend expressed his frustration over Coinbase’s fees, speed, and trading limits without verified accounts. These problems are not unique to Coinbase. “With traditional trading I pay a flat fee per trade, this percentage fee can really add up quick,” he noted, “and what is up with only being able to trade $2500 right now, what if I want to buy more?” Though he was frustrated with some aspects of entering cryptocurrencies, he acknowledged that setting up brokerage accounts can also be a pain.
While those barriers can be annoying to new traders, hodlers, and investors, my friend also pointed out that he thought cryptocurrency might be a good way to hedge his positions on the traditional market potentially if he felt there was going to be a bubble. Investors do often look to alternative investments in times of market turmoil. He said he would do his research -something all investors should do- before trying it out. His final thought on Bitcoin that night was that he wanted more, but was sad he did not invest earlier when it was cheaper. I told him about Bitcoin Pizza Day and how much those coins would be worth now. We both gave a heavy sigh and then decided to order a pizza of our own, with fiat and not his shiny new Bitcoin.
from The Merkle