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Wealth
  *  Bitcoin's Future  *  January 13, 2021 [GD52-Wealth]
[Image source: Bitcoin Wiki]

Why I've Changed My Mind on Bitcoin  by Nick Maggiulli


Takeaways

I highly suggest consuming the full piece here (7 min. read time)

"As Paulo Coelho wrote in The Alchemist: Everything that happens once
can never happen again. But everything that happens twice will surely
happen a third time," Nick references.

"What the Bitcoin bulls were right about was increased adoption and
the ability of many Bitcoin owners to hold ('HODL') even as prices
rose dramatically. These two effects (more demand from buyers and
reduced supply from sellers) have helped to boost Bitcoin's price and
cement it as a legitimate asset class within the investment
community." -- Nick Maggiulli

People who were skeptical of Bitcoin before its recent price surge,
told themselves that they'd buy Bitcoin if it dropped to the
$1,000-$2,000 range. This range keeps going up for the skeptics.
"...every time the price goes up in the future, these 'mental buy
limits' go up as well, increasing the likelihood of Bitcoin's future
survival," Nick explains.

"...both the price of gold and the price Bitcoin are based around one
thing and one thing alone--belief. The belief that these assets will
have value in the future." -- Nick Maggiulli

Nick compares Bitcoin to the early years of the ability to invest in
gold. "Though Bitcoin is unlikely to follow a similar path to gold,
it is likely to exhibit similar behavior. This means that Bitcoin
will continue to have huge run ups in price followed by violent
crashes. Crashes that may last years (and possibly decades) in the
future." -- Nick Maggiulli

"...if Bitcoin's market capitalization were to match that of gold, it
would be worth over $500,000 a coin. This is why some investors are
so bullish on Bitcoin." -- Nick Maggiulli

[two-cents]

My two cents: That last fact is pretty mind-blowing. As an investor,
the question becomes will Bitcoin ever reach the same market
capitalization as gold? Nobody knows the answer to that question, but
choosing to invest in Bitcoin means you're willing to find out. I'm
willing to find out. Albeit, I barely put any money in, although many
people don't realize you don't have to buy 1 whole Bitcoin to invest.
You're able to buy $100 worth or whatever amount you're comfortable
with and still "own Bitcoin." You'd just be a partial owner alongside
tons of other partial owners.



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