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IMPORTANT CONCEPT
1/
Please understand that #Bitcoin
is a "non-productive" asset i.e. it is not a capital asset.
In the steady state (~decade?), it should be treated as the "cash" component of your portfolio.
Just like you treat(ed) fiat for the last 50 years.
1/
Please understand that #Bitcoin
is a "non-productive" asset i.e. it is not a capital asset.In the steady state (~decade?), it should be treated as the "cash" component of your portfolio.
Just like you treat(ed) fiat for the last 50 years.
2/ Bitcoin is NOT a get rich quick scheme. It is a get poor slowly scheme.
Previously, gold did that but fell short in the "medium of exchange" use case in the digital world. You cannot transact online with your gold.
#Bitcoin fixes this.
BONUS: In a better way than fiat.
Previously, gold did that but fell short in the "medium of exchange" use case in the digital world. You cannot transact online with your gold.
#Bitcoin
fixes this.BONUS: In a better way than fiat.
3/ Other digital assets backed by cashflows will be "productive" assets.
In that future, investment objective would be to invest your #Bitcoin into productive digital assets to earn more Bitcoin.
Bitcoin will be risk-off.
Most other digital assets will be risk-on.
In that future, investment objective would be to invest your #Bitcoin
into productive digital assets to earn more Bitcoin.Bitcoin will be risk-off.
Most other digital assets will be risk-on.
4/
Think of two islands. FIAT & BITCOIN.
We are in an early transition period from #Fiat to #Bitcoin.
Hence, early Bitcoin settlers are able to buy more Bitcoin today in exchange for their Fiat.
In future, Bitcoin per unit of fiat will become more expensive.
No ceiling.
Think of two islands. FIAT & BITCOIN.
We are in an early transition period from #Fiat to #Bitcoin
.Hence, early Bitcoin settlers are able to buy more Bitcoin today in exchange for their Fiat.
In future, Bitcoin per unit of fiat will become more expensive.
No ceiling.
5/ Hence, the following meme.
Please DO NOT USE this meme to indefinitely HODL.
Price moves in waves. Waves could be multi-year (2013, 2017, 20xx?).
Take profits once in a while if that is life changing money for you.
#Bitcoin
Please DO NOT USE this meme to indefinitely HODL.
Price moves in waves. Waves could be multi-year (2013, 2017, 20xx?).
Take profits once in a while if that is life changing money for you.
#Bitcoin
6/ Once the #Bitcoin settlement is mainstream, you will -
a) either hold Bitcoin in your wallets as cash, or
b) invest it in humanity's productive endeavors
Same old investing principles will apply again.
#Value investors will love it. Warren Buffett will understand.
settlement is mainstream, you will -a) either hold Bitcoin in your wallets as cash, or
b) invest it in humanity's productive endeavors
Same old investing principles will apply again.
#Value investors will love it. Warren Buffett will understand.
7/ But, in island #Bitcoin , investors have low time preference.
In the Fiat island, investors are forced to invest or risk monetary devaluation because of incessant money printing. Not in island Bitcoin.
It leads to more efficient capital allocation. Free markets work better.
, investors have low time preference.In the Fiat island, investors are forced to invest or risk monetary devaluation because of incessant money printing. Not in island Bitcoin.
It leads to more efficient capital allocation. Free markets work better.
8/
To summarize, it is tempting to see that you are getting Fiat rich via Bitcoin, but in reality you are starting to get less poor in Bitcoin terms.
Understand this, and you will never see money in the old way again. #Bitcoin .
P.S. This is not Bitcoin Maximalism.
To summarize, it is tempting to see that you are getting Fiat rich via Bitcoin, but in reality you are starting to get less poor in Bitcoin terms.
Understand this, and you will never see money in the old way again. #Bitcoin
.P.S. This is not Bitcoin Maximalism.
9/ To understand Bitcoin more philosophically, follow @aantonop @cburniske @APompliano @anilsaidso @MartyBent @nic__carter @pierre_rochard @ErikVoorhees @robustus @lopp
and many more...
and many more...
10/ Once you understand this, there are more islands to explore beyond #Bitcoin . Get ready!
"Miles to Go Before I Sleep" - Robert Frost
Mic drop.
. Get ready!"Miles to Go Before I Sleep" - Robert Frost
Mic drop.
