The Phases Of Bitcoin Adoption

in LeoFinance2 months ago (edited)

Hey Jesstackers

Since a Bitcoin has been smashing all price predictions and all-time highs, it’s getting a lot of attention from normies. We who were here before like myself being a late adopter as the class of 2016 have held down the fort until now and provided the floor!

But we have to accept that Bitcoin has outgrown us, it’s becoming an adult, and we won’t matter in the grand scheme of things like we did back when we were buying the previous bear market floors and keeps the dream alive.

The world is waking up to what we’ve known, and it may not be this cycle, but the next before it really takes hold, but it’s safe to say we’ve hit new levels of adoption.

As Bitcoin reaches the eyes and ears of “normies”, I’ve been one of the touchpoints people in my social circle turn to when they have questions about Bitcoin, and I’ve noticed a few distinct phases!

Many have had a brush in with Bitcoin over the years, and it’s interesting to see how each one thinks, based on the phase they are in right now.

Having gone through them myself, I often laugh to myself thinking back to when I had that mindset and how I’ve progressed in the last 5 years.

Bitcoinadoptionphases.png

The Ignore phase

I think the vast majority of the world still sits in this camp, and 7 years ago I was there. I heard about this thing called Bitcoin; it sounded dumb and Ignored it.

It sounds silly, internet money; it sounds too good to be accurate; it sounds too complicated; it sounds like a scam; it sounds like a Ponzi. Perhaps one or all of these thoughts go through your mind as you quickly dismiss Bitcoin.

The “oh it’s still a thing” phase

Naturally, after bull markets, the excitement dies down, and countless obituaries are written about Bitcoin. Then when the next halving kicks in, Bitcoin shakes off the dust of the previous winter hibernation and it's in the news again. This is the second touchpoint, where you may think oh there may be something to this Bitcoin thing, maybe I should check it out, many won't though and remain dormant for some time.

The I might as well get some phase

Then comes the pinky toe, getting some skin in the game, you think ah this thing looks cool, it could make me rich, perhaps you're just curious how it works, so you hand over some fiat, and you get your first Bitcoin. This is where the rabbit hole beings, and it's only a crazy ride and an eye-opening educational experience for everyone.

The speculation and shit coin phase

Bitcoin is like a gateway drug; it opens you up to the entire world of crypto, where new hodlrs tend to be like magpies and want to cash every shiny new thing. you'll go into crypto Twitter or Reddit learn about "altcoins" or "shitcoins", and you'll be mesmerized by their fancy white papers and low unit price and think you discovered the next Bitcoin.

You'll part with some precious Bitcoin, make some paper gains get burned and eventually come back to granddaddy.

The accumulation phase

Once you've whored around the shitcoin market for long enough time, do your research, follow what new studies and projects are launching in the space, many move away from altcoins and move back into Bitcoin. They realise that Bitcoin is either the safer play, the only play or the easiest play and that your position in relative satoshis is what matters most.

Here is when you start thinking about joining the 1 coin club and look into DE-FI and lending markets to try and put your Bitocin to work for you. You'll realise how precious this is, buy a cold storage wallet, back up multiple seed phrases and try to manage your Bitcoin position through dollar-cost averaging.

The obsession phase

This is when you start getting cold sweats you wake up realising you're too short and need to acquire more, you become obsessed. You spin up a node, you join the lightning network, you deep in Bitcoin Twitter. You stud economics, you follow key Bitcoin influencers and you're the most bullish you've ever been and price doesn't matter.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment on, comment "I am a Jessie."

Let's connect

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i think that i am at The obsession phase but having 0$ can't help a lot :P

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You got to get off zero sometime mate, trade some LEO for swap.btc it will make you feel better lol

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Yep, what he said. You have to get some skin in the game to realize how valuable it can be. Find a place you can put in a small amount and get started!!! You'll feel a lot better about knowing you at least have *something *while it's going up. Even if it's not as much as you'd like....

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Lol you can NEVER have too many Satoshis I thought that too like eventually I'll feel I have enough, it's a myth! You can always add more even if I only add 100 Sats extra for the day I am happy

Totally agree. In fact, I just posted about that. Stacking Satoshis...A Reminder. Personally I think every satoshi I can accumulate will be worth a nickel in 10 years. When I can still get 200,000 for $100 that's a LOT of nickels. :-)

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I wasn't even thinking that far, so I use the South African rand to buy BTC which is 15 ZAR to USD so if BTC hits 66k USD then a satoshi is 0.01 in ZAR. For me I was just trying to front-run the inevitable, for every 0.01 I get in below 66k USD I effectively increase that purchasing power by a sweet multiple

Nice! You've got a nice little near-term goal to keep you motivated and then you can switch gears to another one for future motivation. I might borrow that. I'll have to check some other currencies and see where that 0.01 is....

Just gotta keep stacking them up. I'm hoping some of the little alts I'm in make some runs before btc runs too high....

So these currencies are the next to hit 1 satoshi to a 1 cent parity

Mexican Peso
South African Rand
Botswana Pula
Norwegian Krone
Swedish Krona

Nice! You'll have to keep that list handy and we can put checkmarks next to them as we go... :-)

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Very true, i think there will be very few who would have taken it right in first shot, most of us have had our gains burnt before realizing the reality that not everything is Bitcoin.

You try to accumulate more and more and then more and more, and its never ending process.😂😂

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Lol that's why I don't try to preach to people what they should do, we all in different stages of the adoption process :)

Great insights there Che based on your personal experience. May I ask some advice/info: How does one swap our Leo tokens for Hive? All I see on the Leo dex and Hive-engine exchange is swaphive. How do we get the swaphive to actual Hive, that we can trade for Btc and ultimately fiat. I can't do much with the swaphive except trade it back and forth internally. Many thanks.

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If you're using LEOdex, click the withdraw button on the site and withdraw the swap.hive to your main account and you can then use blocktrades or Binance swap your HIVE for BTC like you would normally

If you're using HIVE-Engine, you can buy swap.BTC with your Swap.HIVE and then pull the swap.BTC straight out of HIVE-engine to say your LUNO account for cashing out. I think that's the better option, less steps involved and fees

Wow many thanks, that's amazing to know Che. I simply buy swap BTC and send that to my Luno account - brilliant.

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In Sweden it is "What? Is this still a thing"
But investors are in "I need to dip My toe"

Really? I would have thought they are further along if 10 year olds already have bank cards, why wouldn't people want to mine there? The cold should be good for mining right?

You can not do mining because A - to high cost for electricity B - because difficullt tax-rules.
Well - yes boys and girls have bankcards from 10-12 years old but they dont know about Bitcoin. It is still so few in sweden talking about it.
If I write about BTC in my facebook my friends will think I got scamed... That is the level here...

BUT - I see that more and more investments-experts telling that they invest small amounts. But that is still a "scary, high-risk, maybe bubble" -thing.

lol I don't even know why you want to be in crypto in Sweden it seems like its so difficult I don't think I could do it, too many rules. I would cry having to deal with all of it.

I guess you can always buy Swedish government bonds they still kick-off 0.250% APR

Yes. The Bonds is Perfect. Thats a wonderfull investment !
!BEER

Does Sweden have citizenship by Bond investment? :P

LOL no. I honest dont know anyone hold this bonds. I think it is only banks and big companies.
But we are really high invested in stocks. Everyone (almost) have stocks.
Today I realize that I have to pay 110% in tax....
I need to pay MORE tax then I earn in trading. Will make a post about.
WELCOME TO SWEDEN

LOL, I look forward to it, from what you tell me it seems like it's far better to live on government subsidies and programs in Sweden than it is to work, invest and have your own business. The incentive structure doesn't make a lot of sense to me.

Unless YOU are doing something wrong, don't you have an accountant friend to help you not pay so much?


Hey @chekohler, here is a little bit of BEER from @minimining for you. Enjoy it!

Learn how to earn FREE BEER each day by staking your BEER.

Bitcoin is like a gateway drug; it opens you up to the entire world of crypto,

I agree that entry makes a world of crypto but now we have more options and ofcourse Hive is the one with huge potential. still, many people believe only in bitcoin and hope with the passage of time they will consider altcoins too.

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I think Bitcoin still needs everyone's support, only once we've firmly established that anchor can we think of how we can leverage it in new ways. I have nothing against altcoins even though most of them are shit coins doomed to die

Obsession phase is a perfect description. I am working on an article about the addictiveness of BTC and crypto as I believe that I am in that phase myself! Great article, did a good job of putting non-technical and absolutely spot-on names to the phases of the cycle!

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Thanks man, looking forward to your article give me a tag In the comments in case I miss it

BTC makes saving scary in the beginning with the idea of self custody and volatility if you measure fiat

If you realise the savings game is all about securing more Sats and that the purchasing power is all that matters then it really become a fun game

I've been trying to set up more and more ways to dollar cost average into BTC vis things like LP pools, staking coins, interest accounts and of course buying

Near Christmas 2012, my sister-in-law stood in our kitchen and told me about this new kind of virtual money people were creating on their computers... and how I ought to get involved with that, since I was "into computers." Looking back, it was pretty surreal as she is pretty much a Luddite.

I did look into it, but it just seemed "too technical" to do this "mining thing" they were talking about, and I would have to buy a screaming hot new computer to be effective at it, anyway. I even looked into buying some, but it seemed too damned difficult to do that... you had to become part of "local Bitcoins" and meet someone in a parking lot with cash... like it were drugs or contraband.

So I ignored it. Until about 2015, when a nerdy "alt" friend stayed with us and he'd been working on the Ethereum project... first time I heard there was something other than Bitcoin.

It this point, we still own about 0.1 BTC from a 2015 purchase... but most of it was spent on living expenses, and we felt like we'd made a GREAT investment to have bought at under $200 and sold at $1,000+ (to about $2,000). Such is life.

At this point, I am really more interested in alternative blockchain projects that are more functional than BTC. I guess I like things that look like "utility" coins. In a sense, Hive is a utility coin...

=^..^=

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Dang you got in hella early I don't blame you for not holding on that was a completely different time. If you localbtC or mt gox days I totally understand why it was sketchy, but also it was only a few bucks to get in so I guess risk reward ratios hey. That's so weird your sister in law knew about it before you, if you the techy of the 2.

What got me buying was a client of mine was actually a crypto exchange and explained to me how BTC works and I thought If im going to work for them I need to buy this thing and learn more about it. Then once I got in and started asking friends some were already mining and buying they just didn't talk about it.

I get that, utility tokens are interesting, but I don't see them as sound money, I see them as replacements/tokenised versions of loyalty points, shares/equity, bonds, and certain value that was lost in web 2 model.

BTC to me is the only one looking at being a savings technology, and for someone like me in South Africa where inflation is literally ripping my pockets like crazy, its more of a hail mary move, just protecting my buying power not trying to moon with a alt although it would be nice

I think I moved from the 'ignorance phase' to the 'speculation' phrase really quickly because I did not have many options. Crypto was the only thing that offered to buy me for my creativity so I took it with both hands and started building my future around it.

I am looking forward to the utility phase where people are more concerned about creating value and changing the current corrupt financial system.

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I get it, we all get in at a different pace some phases happen together and others can drag out for a long time, like the shitcoin phase

I feel you man, I also felt like the system is corrupt but I don't like blaming inanimate things, systems do what they are designed to do, if it is created or adjusted by corrupt groups then sure the system will favour some over others.

Not much I can do about that, all I can do is collect my BTC and protest in satoshis owned

I love everything about this article. It clearly defines the mood of people in fomo

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LOL the FOMO will get you eventually, there's just something about greed and learning how it controls you that make for some hilarious and painful lessons

Very funny your post, I liked it a lot. At the moment I think I'm in the accumulation phase, well, about to enter that stage. This DeFi thing seems to me one of the most interesting things that is happening to the crypto world, however I prefer to wait to make some move there because I understand that the commissions in Ethereum are quite high for small investors. Regards, I love your work.

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Accumulation stage is where the fun begins :)

Thanks, if You want to get into ETH dapp tools, you could use MATIC a second layer but it does get complicated. You can also try things like JustSwap on TRON or Pancakeswap on Binance smart chain which is much cheaper too, but the yields aren't as attractive yet, but its nice to try out and get used to it without burning all your funds on fees.

Thanks, I enjoy your articles too, they always give me something to think about

Had to laugh, saw myself in a few places there.

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LOL I laughed writing it, sometimes I have to remind myself I was also there doing stupid things like buying shitcoins YouTubers recommended and getting rekt and that I'm not too smart to get rekt again

Yes, you pretty much nailed the phases. I certainly have been a part of them all and am now firmly entrenched in the "Accumulation" phase. :-) I have a slight bias towards the Obsession phase in that I am of the firm belief that price doesn't matter at these levels. But I'm not shouting from the rooftops or setting up nodes or anything.

I, too, am a product of the last cycle so I've been through this all once. It's a crazy ride. I'm now in the camp where the best (if not quite the only) reason to buy alts is to use them to buy more Bitcoin. I've got my chosen few that I may HODL forever...Hive, Leo, LINK?, SOLVE....but, for the most part, I feel like accumulating BTC will pay the biggest dividends in the long run.

Nice article!

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Interesting for me I was shouting at the roof tops during the speculation and alt coin phase I was preaching and of course no one listened and I calmed down and moved through the phases of quite accumulation and now I wake up every day thinking oh gosh have I secured enough

I was thinking more in the lines of Kubler-Ross theory; denial, anger, bargaining, depression, and acceptance. Oh sorry, that's for the people who run and work the Federal Reserve.

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LOL oh yes you have a point there, maybe its phase of adoption for those not benefitting from free money and then a phase of adoption for those getting the free money would be your version

Super happy to see the engagement level on this post!

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lol me too, we need more like this and this place would be buzzing

Lol and your status don't help. Teasing normies with lambos! You know you encouraging them to buy ASAP!

LOL! I only get to tease once every 4 years then for the other 3 I must wait and hear how it's dead! So I enjoy these runs when they come around.

Bitcoiners right now are like

Lol! You tease, but you know you making the hartjies Brandt!

I am making my way through the obsession phase, probably about 80% there. Not set up a lightning wallet or node... Yet!

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Oh, don't you worry we're spinning up both full chain nodes and lightning nodes before the next halving! I've actually been thinking about opening up a coffee shop that is set up with a tesla power wall cost about $12 000 to install here. I don't care if anyone buys my coffee, since the electricity I don't use will go to mining Zcash and Monero and other POW coins and then sell that.

Only coffee shop you know where they stay open serving 1 customer a day lol

I don't care about being a Bitcoin Millionaire when converted into USD I care about being a Bitcoin millionaire in terms of having millions of Satoshis

Lol! It's a wonder why none of these coffee shops here have started spinning up miners in their empty restaurants. I'd call my coffee shop "Sataccino"

We better set our sites on having 10 BTC to be satoshi billionaires

I know right, if you paid the rent and the electricity might as well mine while you fill to-go orders

Lol fuck you just hit me deep 4 BTC was my goal, it just became 10 BTC now!!!!

Lol, happy to be your enabler! 2025 vision!

You drew a very clear and real path, haha!

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LOL and which phase are you finding yourself on at the moment?

totally true

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Which phase are you on at the moment?

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More info why you see this.

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Been a while since I've seen the Toruk round these parts. You done good kid

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