PERSONAL FINANCE
Adopting New Technology
BIT by BIT CRYPTOCURRENCY ISN’T JUST FOR TECH BROS ANYMORE
W
hen it comes to technology, I’m not exactly what you would call an “early-adopter.” I used a flip phone until 2015. My mom bought me a Kindle a few years ago, and I basically used it as a wishlist for the books I would eventually buy physical copies of until, inevitably, I lost it (sorry, Mom). This past year, I finally transitioned from using a pen-and-paper planner to keeping track of my days with Google Calendar. I still hate it, though I am much more frequently on-time. As cryptocurrency — basically, a digital currency made up of data instead of dollars where the value is determined by the supply and demand within its network rather than a government entity — emerged on the financial scene about a decade ago, to say I was disinterested would be an understatement. I was terrified. I didn’t even get a credit card until I was 26, for goodness sake. 38 / BANGOR METRO January/February 2022
Now these invisible units of code with meme-related names are worth thousands of dollars and can be exchanged like cold, hard cash? My luddite heart could never. I may not have a choice, though. Michael Seymour, exchange desk advisor at Luxolo Financial in Portland, said that utilizing cryptocurrency is all but inevitable in modern society. “As more of commerce and society is driven by digital technology, simply participating will require owning and spending cryptocurrencies,” Seymour said. “Even though there are still some dramatic price fluctuations ahead in the short term, the long term value for Bitcoin continues to appreciate. Nations and corporations around the world are investing in Bitcoin. It is redefining global commerce.” Seymour may be biased given that he works in the field, but cryptocurrency has its clear advantages. It is separate from monetary policy, so it is hedged against
inflation or political instability (but a bad investment or a nasty hack could lead you to lose everything, with no bank to back you up). Cryptocurrency is also not controlled by any government or financial institution, so it cannot be impounded, confiscated or restricted from its owners. There are risks, though. Cryptocurrency can fluctuate in value thousands of percent over a short period of time for seemingly no reason at all. Over time, though, Seymour said we will see that volatility even out — as we have with financial assets throughout history. “Cryptocurrencies are quite a lot more volatile than other assets but that’s a perspective of time,” Seymour said. “When stocks were first being issued there was that same kind of extreme volatility.” Not all types of cryptocurrency are created equal, either. While meme-able cryptocurrencies like Dogecoin and Shiba Inu can be risky, longer-standing cryptocurrencies like Bitcoin have been some of the best per-
PHOTO: ©REDPIXEL/ADOBE STOCK
BY SAM SCHIPANI
