In recent times, the ups and downs of Bitcoin has become feature press and topic of many a discussion. Surprisingly, many analogies can be drawn between Bitcoin and business. Just like in business, tales of Bitcoin wealth and woe abound.
One such story is about someone who, when he first heard of Bitcoin in 2013, liked the idea, and after weeks of a process bought ten of what he could see has the potential to be a new form of currency.
Just like so much in business, the idea sounded great, albeit risky. At that time, not many people knew of this new currency, but to him it seemed like something that could catch on, and if it did, there was a potential to make a handsome return on investment. How many of us have had great business ideas, which seemed like something that could catch on?
At the time, one of the ways to buy Bitcoin was to do so via a so-called online exchange. The online exchange would hold your Bitcoin, or you could download it onto your computer. Most of the dealings relied completely on trust.
This too sounds like something we come across in business all the time; cumbersome processes and riding on trust.
In the time that it took to acquire his ten Bitcoin, the price rollercoastered well up above the price at which he committed to buy for and well down too. The new currency was pure speculation; an unlikely gold rush.
The next step was he had to take was to download the codes that make up Bitcoin onto his personal computer. But, because the download process turned out to be as complicated, cumbersome and laborious as the acquisition process and after many attempts to create a wallet, and while the price of Bitcoin was dropping even further, he gave up and left his Bitcoin in the online exchange.
Unfortunately, just a few weeks later, the particular online exchange suffered a very large hacking, and was plunged into insolvency. Our would be millionaire was disappointed, even as the price of Bitcoin was still dropping at the time, but he reconciled himself with a realisation that whilst he had lost out, it could have been worse.
Five years later, it turns out that he was right. The price of Bitcoin had suddenly skyrocketed up to around USD20,000. The ten bitcoins that he lost were now worth nearly one quarter of a million dollars.
In business, whether crypto or corner shop, only sure way to make a new idea work is through follow up, perseverance and hard work.