I agree with your take on BTC. It is technically a currency, but so isn’t my one ounce Eagle. I am about to go do my daily shopping and I doubt very much if I will see anyone transacting in gold—although I guess they could.
When I talk to someone about Bitcoin I would say, “Take a stack of $20 bills. Stand next to an open window. Start peeling off the bills and toss them out the window. When it starts to bother you, that is the amount you should put into Bitcoin.”
On the other hand, dollar cost averaging even a little bit every week/month can add up over time. Again, if you are using money you would otherwise not “invest” it can create a nice little nest egg. I have a small account that I put $20 a week into for my grandkids. I started when they were born in 2019. There is enough in there to pay for two semesters of college. Not bad.
Whenever I see traditionalist investors/advisors commenting on Bitcoin I look for a couple of things: The first is whether or not they are using “traditional valuation mechanisms” to calculate a value. The second is whether they use the “traditional” arguments about its “use case.”
Those two things will let you know that they do not understand it, or its purpose.
The ones who say, “Its speculative” are correct. It is volatile as hell. If it is going to be the “rug pull” of all time, there are some very large investors would might be a little pissed off.
The next stage will be for members of Congress to slap a windfall tax on gains. When that happens, you know it will be here too stay!
Great thoughts Vermont Lt!
Agree.
Ominous changes are occurring. I am not a fan of digital currencies, but believe citizens can do with their own money as they choose.
That said, I closely monitor what the world’s government Central Banks do. They are ALL buying Gold in historic amounts. The IMF and BIS have as of Jan 2024 stated Bitcoin and E currencies can not be classified as an asset.
Tier One assets specified is to be cash and Gold. Tier Two and lower Tiers have all been given accounting “ haircuts “, including US Treasuries ! ALL electronic “ coins” are forbidden from being counted as an asset. Think hard about that.
I believe the answer is all of the above. Bitcoin is a nice way to store value and preserve purchasing power. I believe a physical national currency is a great way to preserve privacy.
Both together are potent. With BTC, I can just escape any country and not have to worry about having it confiscated at a checkpoint. I can convert BTC into any currency I choose and seamlessly integrate with the local economy in privacy.