“The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.”
In February of the year 2013, my friends and I on a weekly basis would have a night where we got together. We started playing this new variant of Chinese Poker called “Open Face” and it was quite a random group. Other then myself there was Tyler, a games dealers that travels the worlds dealing on various cruises and high-stakes games and tournaments around the world. My friend Rudy, who owns a small pizza shop in Seattle as well as various real estate properties around the world and lastly Dusty, who was a software engineer.
Dusty mentioned to me one night about something called “Bitcoin.” As a former economics student at the University of Washington, the idea of currency meeting the virtual world was indeed fascinating. A decentralized currency whose value was not tied to one’s government but instead it’s value is set by the people who purchase it. I immediately bought into it.
As a conservative investor (and quite frankly at this time not having the most liquid resources as I began planning for Showroom82 to open a brick and mortar) I purchased a small amount and sold relatively early as well as I treated it more like a day trader would vs a purchase and hold investor would have. Again it’s not that I didn’t believe that this was the future of currency but rather I was happy with my small profit and wanted to stay liquid to commit to other investments.
Long story short, Dusty bought much earlier and held much longer and is now retired.
I’ve been looking for a moment however when I believed that Bitcoin would once again reach that next level. It’s next Tipping Point per say.
And for me this is the moment right here, annouced just earlier today: A visa branded bitcoin debit card
One of the major barriers of bitcoin becoming a major player as a viable everyday currency versus being something akin to Gold or Silver as it is now was it’s utility.
Yes there have been strides in the past with Bitcoin Atms and mainstream online websites accepting bitcoin as a payment alternative but nothing compared to the doors a Visa Branded Debit Card can do. We’re talking everyday purchases with no real change to buyer’s habit.
This is the tipping point.
On another note if we were looking at it from a economic viewpoint. I actually argued with some friends a few months ago to begin purchasing Bitcoins then. However it was more so on the argument of the business cycle that occurs and is due to occur in the US. Compounded with the historic drop in the Chinese economy.
The idea behind that is basically with the drop in China, logically companies will be forced to find ways to be profitable though it may not be in the economy’s best interest. That means lowering costs by whatever means possible. Lowering orders and cutting jobs. With lowering orders, there is a trickle down effect as now their will be a reduction in demand and thus a reduction in supply which in terms affects any trading partner with China.
This happened with the US Great Recession in 2008 and in turn affected countries around the world with the Global Recession of 2008-2009.
With recessions, consumers tend to hang on to the capital for emergencies, historically investing the capital rather then spending it. Thus the increase of price in Gold during the recessionary years.
Bitcoin is seen as a substitute for Gold and thus why I posited the argument.
- The Tipping Point: How Little Things Can Make a Big Difference