Well said Andy.
I always laugh when people start worrying about the loss of value of the dollar - well don’t own dollars! Currencies are just another kind of assets,and like most assets they go up and down RELATIVE to each other.
In the case of bitcoins, since they have set a limit on how many can be “mined” their value will invariably trend on the upside. Because of that, I believe people will be more likely to hoard them then to use them.
There has been no better investment by far since it’s inception than bitcoins. When it came out you could buy 1000 bitcoins for one dollar. Today 1 bitcoin will fetch over 1000 dollars.
So if you had invested $1000 in bitcoins back in 2010 you would be worth a billion today! Truly unbelievable!
Could you even invest $1000 in bitcoins in 2010?
Seriously — there are a limited supply of bitcoins, if someone had tried to buy a millon of them for $1000, it would have driven the price up wildly.
It is true though that the original bitcoins became rather valuable. That’s true of a lot of stocks as well, if you go back to the original valuation before they even became public.
And bitcoin is worth $1012 today. It won’t be tomorrow, it wasnt’ yesterday, it was 10% different last week, 30% different 2 months ago. It was higher in 2014, lower in 2016.
It is a wildly volatile product, and it has barely kept pace with the stock market in the past year.
It is however an interesting investment, in that it tends to spike up wildly whenever there is a scare that causes people to worry about normal investments.
Unfortunately, it reacts so quickly that you’d be hard-pressed to make money on that — if you could, someone a lot wealthier than you or I would be doing it already. Probably Soros.