What I’m Starting to Understand About Bitcoin
Where I’m Coming From
A few months ago, I was that person who thought Bitcoin was just “internet money” and maybe Ethereum or Solana was cooler because of smart contracts and NFTs. I mean, everyone was talking about DeFi and all these different coins, so I figured Bitcoin was just the “old” one among them
But then I got into Summer of Bitcoin and they handed me this book called “Grokking Bitcoin”. I’m still going through it, but it’s starting to click why Bitcoin people are so passionate about it.
The Learning Curve is Real
Not gonna lie, understanding Bitcoin properly is HARD. I thought I could just watch a few YouTube videos and get it, but there’s so much more to it than “digital gold” or whatever simplified explanation you usually hear.
Right now I’m reading through “The Bullish Case for Bitcoin” by Vijay Boyapati (one of our recommended readings), and it’s helping me understand the whole “theory of money” thing. Before this, I never really thought about what makes something “money” in the first place. Gold, currency, Bitcoin. They all have different properties, and I’m starting to see why those properties matter so much.
What I’m Starting to Understand About Bitcoin
The Security Thing is Actually Insane
So one thing that’s been blowing my mind is how secure Bitcoin actually is. I’m still learning about proof-of-work and mining and all that, but basically, the amount of energy and computing power protecting Bitcoin is just massive. If you want to create money that no government can control or manipulate, you need something really, really hard to attack, unless you can afford a SuperComputer 😎
Other cryptocurrencies use different systems that are supposed to be more “efficient”, but from what I’m learning, they make different tradeoffs. Bitcoin chose maximum security over everything else, and that’s starting to make sense to me.
The Network Effect Thing
This is something I’m still wrapping my head around, but Bitcoin has this huge advantage just from being first and biggest. More people use it, more developers work on it, more companies accept it, more countries are figuring out regulations for it.
It’s like how everyone uses Facebook even though there might be “better” social networks out there. Bitcoin has this momentum that’s really hard for other cryptocurrencies to compete with.
It’s Actually Pretty Simple (In a Good Way)
One thing I’m appreciating more is that Bitcoin just does one thing, it’s peer-to-peer electronic cash. That’s it. No fancy smart contracts that can get hacked, no complicated staking mechanisms.
Something is appealing about Bitcoin’s focus. It’s like, “We’re going to do this one thing really, really well.”
My Current Reading List is Eye-Opening
Apart from “Grokking Bitcoin”, I’m also going through this “Gradually, Then Suddenly” series and this institutional investor’s report on cryptoassets. The institutional investor piece is particularly interesting because it looks at all these different crypto projects and tries to figure out which ones actually have long-term value.
What’s crazy is that this was written years ago, and a lot of the author’s predictions about various projects are coming true. Most of the “innovative” crypto projects from back then are either dead or struggling, while Bitcoin just keeps growing.
Why I’m Leaning Bitcoin-Only (But Still Learning)
I’m still learning about all this stuff, and I try to keep an open mind. But here’s what I’m starting to see:
The Speculation vs. Actual Use Case Thing
I’m noticing that with Bitcoin, people talk about using it as money, saving in it, building businesses around it. With a lot of other cryptocurrencies, the conversation is mostly about trading and price speculation.
Don’t get me wrong, Bitcoin’s price moves around a lot too, but there seems to be more actual substance behind it? Like people are building real things with Bitcoin, not just trying to trade it for profit.
The Community Feels Different
The Bitcoin community I’m getting to know through Summer of Bitcoin, especially in Angor (Block-Core) feels more focused on learning and building rather than just getting rich quick. Bitcoin crowd here seems more interested in the “why” behind everything, not just the “Look Number is going UP”, I am Learning a Lot Lately, All thanks to Angor & SOB for this opportunity
What I’m Still Figuring Out
The Environmental Concerns
Okay, so Bitcoin uses a lot of energy. That’s just a fact. I’m still learning about whether this is actually a problem or not. Some people say Bitcoin mining is driving renewable energy adoption, others say it’s terrible for the environment.
Honestly, I don’t know enough yet to have a strong opinion, but I’m trying to learn more about it.
The Scalability Question
Bitcoin is definitely not as fast as some newer cryptocurrencies. I’m learning about Lightning Network and other solutions that might help
Like, Bitcoin can only handle around 7 transactions per second, while Visa does thousands. That sounds pretty bad, right? But then I read somewhere that Bitcoin isn’t really trying to compete with Visa directly, kind of like how gold doesn’t need to be fast for everyday purchases.
Other cryptocurrencies are faster for now, but I’m starting to wonder if speed is the most important thing, or if security and decentralisation matter more in the long run
My Current Approach
Right now, I’m trying to:
- Keep learning — Reading everything I can, asking questions in the Summer of Bitcoin program
- Stay curious — Really trying to understand what makes Bitcoin special & how is it different
- Think long-term — Not worried about daily price movements, more interested in the bigger picture
- Start small — Everybody should buy a tiny amount of Bitcoin just to learn how wallets work and stuff
The Resources That Are Helping Me
- Grokking Bitcoin — Still working through this, but it’s really good for understanding the technical stuff
- The Bullish Case for Bitcoin — Helping me understand the economic arguments
- Gradually, Then Suddenly series — Breaking down a lot of concepts I didn’t understand before
- The institutional investor report — Interesting perspective on different crypto projects
- Summer of Bitcoin community — Having people to ask questions makes a huge difference
- Why Bitcoin Only — https://armantheparman.com/why-bitcoin-only/
Just to be clear — I’m obviously not giving financial advice here. I’m just sharing what I’m learning. Do your own research!