Bitcoin is made up.
Bitcoin isn’t real.
Bitcoin is a scam.
You don’t have to pay attention, but maybe you should give it a look. It’s running like gangbusters right now.
I think it has value as a concept. Maybe as a tangible asset. We’ll see. I believe Bitcoin, or some other similar concept for money exchange, will be a part of our future economy. Maybe the most important part. I don’t know when that is. Maybe not in my lifetime.
(A lot of intentional maybes)
I heard a good analogy that helps explain why Bitcoin might be a good investment and store of value over the long haul.
Bitcoin was first traded in 2009. We’ll use that as the reference year.
If you put a dollar in your mattress in 2009, you’d need $1.47 to have the same buying power today. If you bought $1 of Bitcoin in 2009, you’d have received 1000 Bitcoins. As I write this, Bitcoin is trading around $87k per Bitcoin. For $1 in 2009, you’d currently have $87M.
But that’s not really what makes it interesting. History provides tons of rags to riches asset stories like Bitcoin.
What makes Bitcoin an interesting asset to watch is the system its built upon compared to the system that the US dollars is built upon. The US dollar system includes an infinite supply and inflation by design. The Bitcoin system includes a fixed supply and slowing generation as we near the end of that supply.
Hold on to a dollar and it’s worth less in the future — by design of the system.
Hold on to a bitcoin and it’s worth more in the future — by design of the system.
None of that means Bitcoin is better than the US dollar, nor will it overtake fiat currency, but its probably worth watching it.
