Felipe buys his first Bitcoin

coinI HAVE ENTERED the new world of cryptocurrency, and I feel quite stylish for having done so. I bought a Bitcoin.

Well, actually, I have purchased 0.01398091 of a Bitcoin. That’s what 3,500 pesos will get you, or would get you yesterday. The value changes. That’s about 185 American dollars. Bitcoins are pricey.

It’s not your daddy’s Bitcoin anymore. While it was mainly known as the cash of crooks and other sleazy sorts not too many years back, it’s cleaned up its act. WordPress accepts it, as well as plenty of other legit businesses, and there are even Bitcoin ATMs in Mexico, four at least, Querétaro, Mérida, Mexico City and Monterrey.

What you’d do with a Bitcoin ATM I have no idea since Bitcoins have no physical existence.

There are numerous routes to becoming a Bitcoin owner. I opened an account with Bitso, which was Mexico’s first Bitcoin exchange. There are quite a few others.

To open an account with Bitso and buy Bitcoin, you must be a Mexican citizen. But if you’re unfortunate enough to not be a Mexican, there are other routes for you.

One of many new online marketplaces that accept Bitcoin, sometimes only Bitcoin, is Open Bazaar. I’ve become a cutting-edge sort of fellow. Though normally I don’t use the word “cool” except when talking about the weather, I think it now applies to me.

Long-term plan: become a Bitcoin tycoon.

24 thoughts on “Felipe buys his first Bitcoin

  1. Felipe,

    Tell us more! What gave you the idea that you needed to own some bitcoin? Is this just an experiment or the first step in a longer term plan to diversify out of the Mexican peso?

    Regards,
    Troy

    Liked by 1 person

    1. Troy: I did it just for the heck of it, no other reason. No long-term plan because I ain’t getting any younger and were I to kick off unexpectedly, my colossally, spectacularly, incredibly, tech-challenged wife would have absolutely no clue about where the money is or how to get it or how to use it.

      My Bitcoin balance will remain about where it is today. If I spend some, which I imagine I will when faced with the chance, I’ll buy a bit more Bitcoin. It’ll be interesting and fun. Bitcoin is going to become a bigger deal as the years pass. There are other cryptocurrencies too, which I did not know till yesterday. I thought Bitcoin was the only one, but it’s just the biggest.

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      1. OK, makes perfect sense to me. The best way to learn about something is to put an amount you can afford to lose on it. Friends of mine have been trying to learn how to invest (aka gamble) in binary options. Winning percentage was very high when playing with funny money. Results took a turn for the worse when their own cash was on the line. I have had similar results when trying to learn a new approach to trading. Learning with ‘play’ money, easy! Playing with real money and all of the emotions that come with fear and greed, very hard! Know you’re not wanting to trade in/out of bitcoin, just saying I like your approach of investing a little bit of real money in it to see what it is all about.

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        1. Troy: Bitcoin, I think, is intended more as an alternative currency than it is an investment, though it’s an investment too, it appears. I doubt I will ever have more in Bitcoin than I currently have, less than $200 U.S., which I can lose without pain. Again, it mostly for fun.

          As far as actual investments are concerned, I’m a mutual fund kind of guy, which I think is the only sensible way to invest for anyone not in the financial field.

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  2. I hope you bought your Bitcoin after it crashed last week. It’s gone from a peak of almost $20,000 down to just over $10,000. I bought some physical gold last month. It’s shiny and heavy, and I can play with it. Not sure what a Bitcoin is except some sort of Ponzi scheme. I’ve tried hard to understand exactly what it is, but I guess I’m just not that smart. Have fun with your Bitcoin.

    Liked by 1 person

    1. Brent: Well, you’ve delivered some good news. I was not aware that it sank precipitously last week. Yes, I bought my meager amount just yesterday. ¡Qué bueno!

      Bitcoin is not a Ponzi scheme. It’s the future. As for exactly what it is, I too remain perplexed. Just last week I read part of a book (I couldn’t get through it entirely) that “explained” Bitcoin. You’d have to be a programmer to understand it.

      But I am having fun.

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      1. Glad you’re having fun. Cryptocurrencies may be the future, but I don’t think we’re getting rid of fiat currency any time soon. It will no doubt be devalued through inflation, but it’s still convenient for smaller transactions.

        When the explanation of Bitcoin and blockchain technology is so complex that only geeks can understand it I’m a little suspicious. It seems to exist somewhere in the ether and apparently you can mine Bitcoins if you have enough powerful computers and electricity. I heard they’re building a city in Russia just to mine Bitcoins because of cheap access to power. Meanwhile, I’ll keep scratching my head and play with my gold! Good luck.

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        1. Brent: Oh, it will not replace “real” money anytime soon, but it’ll be fun on the small scale I have in mind. Yeah, I read about the heavy electricity requirement to be a “miner.” Odd.

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            1. Brent: I am absolutely confident that my $158 investment will shore up the entire currency. Perhaps I’ll even be given a medal and/or an audience with King Trump. Stay tuned!

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  3. Do Bitcoin ATMs dispense pesos?

    Incidentally, I see numerous articles on “What You Need To Know To Invest In Bitcoin.” In my opinion the only thing you need to know is when to get out.

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    1. Creigh: O ye of faint faith! Embrace the future. That’s what I say. But even so, I wouldn’t stick any meaningful amount of money in it.

      As for what Bitcoin ATMs do, got no clue, but they do exist. Yeah, I guess you get pesos out of them, according to what’s in your Bitcoin account. I guess.

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  4. Good luck, I smell a flim flam. I have made so many bad investments that I am gun shy. I can tell you don’t invest in worm farms, chinchillas, fun parks in the Arizona heat, sleazy insurance companies with glib salesmen. And Mexican banks. My kids tell me I should have put all of that money into Microsoft or Apple.
    Again, good luck, you are going to need it.

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    1. Ah, Señor Gill, ever the gloom and doom. And yet the sky has not fallen.

      As for Mexican banks, there is only one major bank down here that’s strictly Mexican, and that’s Banorte. The others, HSBC, Santander, BBVA Bancomer, Banamex are all brought to us (mostly) from out of country. And they function just fine, especially BBVA Bancomer, my favorite.

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  5. You forgot about Banco Azteca, which is owned by Ricardo Benjamín Salinas Pliego, a Mexican businessman, and the founder and chairman of Grupo Salinas, a group of companies with interests in telecommunications, media, financial services, and retail stores including Elektra.

    He is the fourth richest person in Mexico.

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    1. Andrés: I didn’t forget about Azteca. I don’t consider it a major bank. It’s a mid-level thing that mostly, but not completely, services customers at Electra. Walmart also has banks here. Again, not major players like the ones I mentioned.

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  6. Here’s the problem with Bitcoin. Yes, BTC itself is limited, and they project that all possible Bitcoins will have been mined in a few years. But it’s an inefficient payment system being able to process only a few hundred transactions a minute. (Visa and Mastercard do tens of thousands per minute.) And it takes a LOT of electricity to process transactions. So it’ll never become a widespread medium of exchange.

    As for store-of-value, maybe. However, while BTC itself is limited in quantity, there are now hundreds of other cryptocurrencies. So I believe that eventually whatever scarcity value it might have will go away.

    Finally, the minute the regulators decide that it’s too much of a threat, facilitates crime, or hurts children (ok, that’s a joke, but wait until some politician cooks up a reason that it does), then it’ll be all over.

    So color me skeptical. Gold has been money for millennia and I think it will hold value for the long term. Of BTC I’m considerably more skeptical.

    Saludos,

    Kim G
    Redding, CA
    Where we’d rather just have a lot of plain old fiat currency.

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