One of the most common objections I still hear to holding any bitcoin is, “I just don’t understand what it is or how it works.” You, reading this right now, might even feel this way.
You’re likely reading this article on the screen of a phone or computer so think about this:
- Do you understand how the words on your screen were delivered to your device?
- Do you know how TCP/IP or HTML work? Do you know what those acronyms mean?
- Do you know how the computer you’re holding converts bits of information into the photons reaching your eyes?
I’m going to take a guess and say no, you are not sure how any of this works. You don’t understand it at all, yet if you look in Screen Time on your iPhone, you’ll see some staggering usage of a device and system you cannot begin to explain.
But you don’t need to know how these systems work because you find value in them. And that’s enough.
Let’s look at an even more abstract system: money and investments. You probably earn money every month and keep it in a bank account, pay for your life with a credit card and cash checks once in a while.
- Do you know how your bank clears and settles transactions?
- Do you know how Robinhood keeps the accounting for your stock portfolio and executes trades on your behalf?
- Do you know how the Federal Reserve “conducts the nation’s monetary policy”?
Even if you work in the financial system, I’ll take a guess that you do not have a full grasp on how these systems work. In many cases, the operators of these systems have no reason to help you understand — they often benefit from obscuring how they work to the outside world.
Even though you don’t understand how these systems work, you interact with them every day because you understand the value of each in your personal life.
Understanding what something is or how it works is not a prerequisite to finding value in it. Bitcoin is no…