All in on Bitcoin

How a Programmer Became a Multi-Millionaire

Computer programmer Alexander Bottema made a tough decision four years ago.  In 2013 he decided to liquidate all his investments (stocks and bonds) and instead invest 100% in Bitcoin. That decision in 2013 had made him quite lucrative and almost at Billionaire status.

At the time he made the switch to Bitcoin, a single Bitcoin cost $30.  Today, as of this writing, Bitcoin costs $4,300 a coin.  His decision came after he reviewed the code for Bitcoin.  Prior, he worried that any cryptocurrency would suffer from a lack of security.  After he reviewed the code base he felt that the decision was clear – to switch and invest in Bitcoin.

In an interview with Business Insider, he gave some of his reasoning on the switch:

”The allocated value of the gold market, where rich people put their money to avoid devaluations, is roughly 8,000 billion dollars. If you divide it by 21 million, which is the number of bitcoins that will be available from the year 2140 onwards, you get 380 000 dollars per bitcoin. I ended up on values ranging between 50,000 and 100,000 dollars per bitcoin. I panicked, and bet all of my savings.” – Business Insider

Disagreement

Where I respectfully disagree with Alexander Bottema, is in his view of “one currency to rule them all.” He states that Bitcoin is the only choice for him and that the competition from other currencies will not affect the price – his analogy is that of VHS vs. Beta.

Alt-coins are not much of a competition to Bitcoin (yet) but this market is not like a one stop service (such as VHS/Beta.)  In the VHS/Beta analogy, you are dealing with a limited market where a home consumer could afford one, not both players and the market determined a king.

The Cryptocurrency exchange is more like a stock market – various stocks up for grabs, and new ones emerging every week.  There will be the “pink-sheets” and grey market options, and bluechip.  There’s room for it all to work and thrive.

The same is true for cryptocurrencies.  Bitcoin would be akin to a Blue-Chip stock… and Aero would be akin to a pink-sheet.  In between these extremes are a variety of value choices: Ethereum, Doge, Litecoin, etc.  The market is wide open and these newcomers are bringing (in many cases) new technology to go beyond the origination of Bitcoin.

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