Sunday 31 May 2020

With Bitcoin, I feel like I am saving, rather than investing

From a friend of mine:

I started buying bitcoin first as an investment, but gradually, as I became more and more comfortable in the environment, and shifted more and more of my savings into bitcoin, I realized something fundamental had changed:

As a millennial, this is the first time in my life that I could have “savings,” rather than investments.

Most of my friends and family are in debt, either from college, from “buying” a house, or both. Those who are not in debt, are forced by near zero interests rates to invest in stocks or bonds, or real estate. Many friends and their families lost it all in 08. And the future is more uncertain than ever, as our pension funds are invested in the same risky schemes.

Meanwhile, after hodling through the last bear cycle that took BTC to 3k, you come out of it realizing that in the long run, BTC will most likely always appreciate. Why would you, then, ever take your savings out of it? Of course, BTC is still a risky proposition, but it is the only one that allows you to save.

I guess the distinction I am making about BTC being saving or investment is a bit of a stretch; I mean, BTC is still a gamble by all means, but it feels like less of a gamble, or a more worthwhile gamble, than anything else. And it is the only one, that due to its ability to appreciate over time with a higher degree of certainty (the hard coded diminishing supply), to give me a feeling that I am “saving,” rather than “investing.”



Submitted June 01, 2020 at 12:28AM by 100_Jose_Maria_001 https://bit.ly/3eHKAeJ

No comments :

Post a Comment