Illustration by yuRomanovich
Bitcoin is making every investment/asset in history look stupid.
I own Bitcoin. I got involved early on. People either love me or hate me for this somewhat crazy technological choice. They sometimes write misinformed articles about my belief in the future of money, while simultaneously closing their mind to new ideas. They think I care about Bitcoin opinions. I don’t. My only goal in life is to make people think. Getting people to agree with my point of view is the stuff of mind control. I can’t brainwash you. Sorry.
People think the price of each coin hitting $100,000 USD is the end game. While the rise in value is nice for us early adopters of Bitcoin, it completely misses the point.
Bitcoin could go back down to $100. I don’t think it will. But if Bitcoin does do something crazy in terms of price then so be it. I feel like Bitcoin is a radical shift in thinking that is infecting the planet faster than any pandemic. Bitcoin isn’t an investment. Bitcoin isn’t a get-rich-quick scheme.
Bitcoin is a different way of thinking.
If Bitcoin does keep accelerating in adoption then the foundation of society is going to change. Society is built on centralization. Society is set up by governments. Society is made up of races limited by borders. Bitcoin doesn’t have borders. There is no Bitcoin office.
You can’t complain to Bitcoin.
You can’t be shut down by the billionaire owner of Bitcoin. The creator of Bitcoin is a mystery — it could be Wonder Woman for all we know. You’re free to look into Bitcoin or not. You’re free to buy Bitcoin. You’re free to transact in Bitcoin.
People get easily caught in the hype cycle of Bitcoin, or the anger in the fact they didn’t buy Bitcoin, and so they feel like they must throw stones at anybody who did.
Here’s the point that is missed: Bitcoin doesn’t care. Bitcoin doesn’t give a damn about your emotions. Bitcoin doesn’t care if you got rich.
Bitcoin is a quiet protest.
It’s the idea that inequality is bad. It’s the idea that money created out of thin air and handed to a small few to inflate the stock market is fundamentally wrong. It’s the idea homes shouldn’t cost a lifetime worth of hours stuck in a cubicle. It’s the idea you should be able to send money anywhere in the world within a few minutes.
Eventually, like the internet, we will all be using Bitcoin. Bitcoin is monetary information system sitting on an esoteric technology platform called blockchain. Blockchain will eventually be the honesty you rely on to move a widget from A to B in either the physical world or the virtual world.
Bitcoin is the democratization and fragmentation of everything.
The idea is trending on Twitter almost every day. It’s taking over traditional news. People with an audience are talking about it. Social media is pushing content that talks about it. Almost every online community has at least one ongoing conversation currently talking about it.
Bitcoin was always inevitable.
A financial system that excludes people was never going to be viable long-term. People are a wake-up to the monetary circus we live in. People want change and so they are buying into the idea of Bitcoin.
Bitcoin may not be the end product.
Pets dot com used to be a classic website as a punk kid. They got wiped out even though they were one of the first internet companies.
Many other early tech giants got wiped out, too.
The same could happen to Bitcoin.
Bitcoin is the start of the evolution of the internet. It may not be the end state. Although I think there is unlikely to be a challenger to Bitcoin and its one purpose of storing anybody’s built-up value (digital gold). A Bitcoin competitor would likely be silenced before it got the chance to get up and dance.
Bitcoin is an accident.
It snuck in through the back door and governments didn’t pay any attention to it. In 2017 there was a perfect opportunity to ban Bitcoin. It didn’t happen. Now that Bitcoin is so big, and public companies like Tesla (with powerful CEOs) own it, it’s nearly impossible to ban it without creating global protests. The internet would rise up if anybody messed with Bitcoin.
That’s the optimist’s point of view. Still, Bitcoin could become a horse and cart, too. A better technology could come along. Bitcoin could be the 56K modem of the first iteration of the internet. Ethereum could become the high-speed broadband competitor that swallows Bitcoin. I don’t think so, as both have their place in the future.
Bitcoin works as it is because it’s so stupidly simple. It has one use. Its speed is irrelevant. Anybody can understand what Bitcoin is even if they have never turned on a computer.
Bitcoin is where you store your time.
The Alternatives Are Grandfather Clocks
You can ignore Bitcoin. You can pretend it’s evil. Then you’re left with the following:
- Stocks — record highs with a strong chance of a correction.
- Gold — a heavy, expensive, under-performing fax machine.
- Real estate — a good option if you can stomach the enormous upfront cost and the global property bubble.
- Bonds — paying to own debt that pays you next to nothing in interest.
- Derivatives — bet on the price of an asset without owning it. Welcome to the global casino that can keep going when sport stops due to a pandemic.
- Savings account — throw your money on the sidewalk and step on it two hundred times. It pays more in entertainment value than an old bank.
The options to store value are pretty terrible for the foreseeable future. Hence the reason Bitcoin, and to a lesser extent, Ethereum, have become interesting. You can see why the idea of Bitcoin is gaining traction. It’s not that $100,000 per Bitcoin isn’t cool. It’s that existing financial products are broken.
Without Bitcoin, You Get Taxed in the Butt by Inflation
2020 taught the masses about money printing.
Money printing is where governments create money out of thin air, to collect more money on top of taxes, to pay for prior or current stuff-ups (pandemics, wars). This process devalues any money you have.
If all your money is tied up in assets then you might think you’re safe.
The challenge is, creating money out of thin air distorts the price of assets like real estate and stocks. This affects you in one simple way: the value of an asset becomes difficult to calculate. When you don’t know the inherent value of an asset, you quietly have some of that value taxed away from you. Or you become delusional and say “my stock portfolio went up 20%!”
Tricking you into thinking you’re getting richer is one of the biggest lies of current society. Your psychology is predicated on you thinking you’re getting richer so you keep using the old financial world and paying their taxes and middlemen fees.
Bitcoin lights a fire under the idea of middlemen.
You can trust a man, or you can trust irrevocable code.
The Ridiculously Simple Point of Bitcoin Is This
Buy Bitcoin. Don’t buy it. Watch the price go to $100,000 or ignore it.
The Winklevoss twins of Facebook fame said it best: Money is the greatest social network of all.
The social frameworks are changing because they have to change. A small few can’t continue to rule the world. A few giant tech companies can’t tell us what to think and how to feel. At some point, everyday global citizens have to take back the internet again.
Who cares if Bitcoin goes to $100,000? It won’t make you happy. You won’t feel better if you missed out on buying any.
Bitcoin is an idea that challenges ownership. When ownership changes, everything changes. Be open to the inevitable change coming. That’s the point of Bitcoin that seems to be missed.