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An Unexpected Encounter with Bitcoin: A Journey into Crypto

Last June, while out sailing, a friend of mine, who happens to be an aerospace engineer, reached out for assistance. He wanted me to take a closer look at a “bitcoin” he had learned about through a family friend. In his message, he sent me an image showcasing a plastic bitcoin wallet, with a private key that was only partially visible. This intriguing piece of plastic had been gifted to the family friend as a promotional gimmick at a conference, and it had since been relegated to the depths of a cluttered drawer, forgotten and unused.

The Dilemma of Imposter Syndrome

In that moment, imposter syndrome crept in, resting heavily on my shoulder. Despite having spent two years working in the crypto space and another two years casually exploring my personal crypto account, I felt woefully inadequate—far from a seasoned expert. Could I genuinely claim to recognize such items? My crypto experience didn’t quite equate to the “cred” needed to make grand statements about this plastic artifact. Realizing my limitations, I opted to voice a no-promises disclaimer and deftly shifted the topic of conversation.

Turning Curiosity Into Understanding

Upon returning home, I opened the image and approached the task with the same earnestness as a forensic investigator—although, in reality, the situation lacked any criminal elements. How did these archaic wallets function? With a private key printed on the card itself, how could it ensure security? While I was familiar with BIP39, I found myself puzzled about BIP38 and its utility.

As I delved deeper into my research, I decided to examine the bitcoin blockchain. To my surprise, I discovered that exactly one bitcoin had been transferred to the given address nine-and-a-half years prior when each bitcoin held a modest value of just over $325. Since that transaction, there had been no further activity linked to the wallet. The hidden BIP38 “private” key intrigued me further, especially considering that it required a passphrase for decryption. The nagging concern surfaced: Did the family friend keep that crucial passphrase safely tucked away on a Post-it®, now carrying a value of around $100,000?

Bridging the Crypto Gap with Friends

Fast forward to this week, and I found myself attending a show with another group of friends. Seizing the moment, I offered to reimburse them for our tickets using cryptocurrency. With enthusiasm, I said, “Set up a Phantom wallet, securely store the seed phrase, and send me your Ethereum address. I’ll compensate you either in ether or USDC—your choice.”

As I spoke, I noticed various expressions on their faces; from chuckles to raised eyebrows, some delighted, some puzzled, and others intrigued enough to reconsider the offer. Despite the mixed reactions, I remained optimistic about eventually receiving that Ethereum address. It appeared we were witnessing another “gimmick” resurfacing a decade later.

The Big Question: Why Ethereum or USDC?

You might wonder why I chose ETH or USDC over Bitcoin. By 2025, the concept of Bitcoin is expected to be well-known; it will no longer be shrouded in mystery. People will grasp the basic ideas surrounding it, and if they are considering purchasing a digital asset, Bitcoin will be readily available to them. Positioned as a store of value due to its scarcity, many anticipate its price will continue to rise as more investors enter the market.

However, the same cannot be said for Ethereum and the various stablecoins. Many individuals still struggle to comprehend how Ethereum functions, specifically its smart contract capabilities. The concept of stablecoins can be equally confusing, especially when people realize that these digital assets rely on other blockchains and often involve transaction fees paid in ETH, SOL, or numerous other cryptocurrencies. For the small fraction of investors—those likely to allocate a mere 5% of their investing efforts toward crypto—this could represent a pivotal moment in their understanding of blockchain technology.

Learning Through Experience

The ideal way to come to grips with this new realm of finance is, in my opinion, to invest a few “learning dollars” (not actual “investment dollars”) into various crypto platforms and experience transactions firsthand. I genuinely hope that my friends will take their new USDC, engage with protocols like AAVE, bridge some funds to Solana, or perhaps make purchases on Uniswap.

Such primary research may either bolster their faith in a specific platform or solidify their belief that selecting winners within this volatile space is a daunting endeavor, particularly in a year poised for explosive growth. There have already been surprises in crypto; assets like XRP, XLM, and HBAR led the charge on the 2024 leaderboard of the CoinDesk 20 Index, challenging predictions from even the best-informed analysts. As we anticipate future trends, we believe many investors and financial advisors will lean toward diversified market bets over chasing potential outliers.

The Result of Inaction

Interestingly, the holders of that plastic-wallet bitcoin likely did not “take the bait” to become active enthusiasts in the bitcoin world, though in hindsight, preserving that wallet in a drawer alongside a Post-it® with the passphrase may have turned out to be a wise choice. Moving forward, I am committed to seizing every opportunity to encourage people to engage with wallets and gain their own blockchain experiences. And if all else fails in the crypto realm, I’ll still ensure that I contribute my share for theater tickets in good old fiat currency.

Leveraging AI legalese decoder

Navigating the complex landscape of cryptocurrencies can often be overwhelming, especially with the intricate legal jargon and policies that accompany them. This is where AI legalese decoder can prove invaluable. By simplifying complex legal language into understandable and actionable information, it can help new investors and seasoned experts alike make informed decisions in their cryptocurrency ventures. Whether examining the terms of service of a crypto platform or deciphering an investment agreement, this tool can empower users to engage more confidently and safely in the evolving world of digital assets.

This story originally appeared on Coindesk.

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