Does Bitcoin have any value really for the masses

Does Bitcoin have any value really for the masses or is it just an illusion. Gold is the store of value is that still true and does it compare to other assets

What is Bitcoin and what does it represent

Bitcoin is a product that uses the blockchain for transactions and is both a trading asset and a store of value .

The world has waited for a non Sovereign store of value that is devoid of political and national disruption that stands alone among the Fiat currencies.

We are becoming well aware of disruptive technologies that change the way we live and do business across the world.
Recent examples of Disruption have been;

GoogleChanged the way we search and see
AmazonThe Book seller that went viral
Facebookfrom a target audience to world wide appeal
AppleTook a phone to a computer
3D PrintingA new way of building things
Artificial IntelligenceDoing it by robotic automation
Examples of disruption

Now we can add the Blockchain and Bitcoin to the list because things will never be the same again.

Bitcoin is a recognised store of value

Just where you put your money for safekeeping will often be determined by the growth return that it provides to you. For example interest or increase in value in value.

Traditional means can include;

  • The S&P index rising at 34.1% this year
  • Nasdaq going up 41% this year
  • Gold declining by 7.5%

    We also have individual shares that show gains and losses however ;
  • Bitcoin increased by 352% in the same time

Investments must have value.

Therefore the best value investment for 2021 has to be Bitcoin.

Compare the values over a decade to draw a conclusion

Certainly Amazon has gone up around 17x over a decade Google about 11x and the darling Facebook even greater at 32 x its original value. These are massive returns however all are now facing massive challenges to their position.
Amazon has both supply chain problems and a potential union interference to the operation.
Facebook and Google are certainly facing regulatory issues that may affect their future.

The value of Gold has seen a decline by .06 every year averaged over the decade thus positioning it as a dubious long term investment.

Bitcoin has had a 64x growth in that time in a consistent and annualised rate of 170% every year

This makes Bitcoin as the Digital Gold.

The total gold supply is currently valued at just under $10 Trillion and a Bitcoin price of $450,000 would equal the market.
Gold is going nowhere whilst Digital gold is growing as a store of value.

Does Bitcoin have any value really

The ten year gold price also shows some volatility with a near 40% collapse in 2015
That would have had investors pulling their hair out

Does Bitcoin have any value really

Any new technology needs time to be accepted and I dearly wish I had accepted it much earlier.

Does Bitcoin come with risks

Yes Bitcoin comes with risk. However nothing is without some risk so lets look at why we think it is safe.

It could be copiedThere have been around 10,000 tries at imitation
without success
True proof of work conceptEvery movement noted
Banning is always possibleChina tried and it grew the Bitcoin value
Hacking is a potentialAn almost impossible venture
Global Warming potentialThis has been addressed with free energy sources
SpeculativeIt is a trading platform
Further reading ; being scared of the Bitcoin generation

Institutional Investors are now coming on board

In the last two years as Bitcoin has become a recognised source of value the worlds largest investment houses are taking part. These are the so called Whales that hold large tranches of shares for the long term.
The Greyscale trust, Micro strategies, Galaxy Digital and lets not forget Tesla.

In the early days the miners would move the coins gained to cover their expenses however that has now changed. With low interest rates they are borrowing money and hoddling the coins for future vale. It should be noted that miners are no longer back yard operators but billion dollar operations performing the tasks to keep up with development

What are the Bitcoin positives

Consistent value increaseUp around 350% this year
Countries adopting Bitcoin as a store of valueel Salvador is the starter
Limited supplyOnly 21Million coins available
Hedge against inflationWorld inflation gone mad
Used as a currencySpend with your Sartoshies
Available to anyone in small partsInvestments start from around $50
Early stage of growthThe future is far ahead from todays price
Sone advantages of Bitcoin

Does Bitcoin have any value really and are there alternatives.

What are your alternatives

First of all Cash is dead, interest rates that are so low you are actually losing value every month.

Picking shares that will provide an income is a gamble and if you get it wrong it can be very bad.

Betting on the S&P, Footsy or Nasdaq could return you up to 30% a year so it is reasonable value.

The securities regulator has expressed concern this rush of amateurs into the stock market is a train wreck waiting to happen. Its report notes retail investors are, on average, “not proficient” at predicting short-term market movements.

The Converstaion

Nasdaq Composite

Does Bitcoin have any value really

A reasonable result however it is subject to fluctuations

Real Estate is going ballistic and is as high as it has ever be but you know the old saying “what goes up must come down”. Furthermore having value in your home does not feed the hungry mouths.

Choosing other Alt Coins is a choice that can win wars

Conclusion

Bitcoin stands out as the perfect investment for the future. It is difficult times so you really must be careful in placing your money in any one market.

These are turbulent times as inflation runs ahead and governments print money to bolster a flagging community.

This is not investment advice it reflects my understanding of the market. A lot of this is taken from Michael Saylor of Strategic Investments who has a modest $3.16 billion in Bitcoin and still buying.

You will read a lot of rubbish spruiked about the crypto market so get your information from well versed identities that understand what is happening.

You should carefully choose your advisors.

YouTube has many great supporters of Bitcoin. People like Michael Saylor and Raul Paul.

Stats and figures not FUD back up their findings.

Does Bitcoin have any value really



2 thoughts on “Does Bitcoin have any value really for the masses”

  1. You set out a good case for Bitcoin and its growing value in the world but I’m concerned about blockchain storage. I read somewhere that it takes an enormous amount of energy to run this system and it certainly isn’t green or carbon neutral. How will these problems affect Bitcoin value in the future?

    I am interested in the growth of Bitcoin but I would need more information before I invested. Great article.

    Reply
    • Thanks Lily and great for the question.

      The problem lay with Bitcoin miners  which are large masses of computers all working together. This has become a big business and because of cost they mostly operate out of areas where the power is both cheap and green.
      That may include Wind, water, geo thermal or any renewable resource.
      Elon Musk bought this up however became impressed with the efforts  to restrict power and retained all his coins.

      Therefor the the issue is now just a talking point for those that want to find issue with the coin.

      I just wish I had bought  coin when I first looked however am happy to ride it through to about $250k before even considering getting out.

      My investment is not all that  big but enough to really enjoy the journey.

      Peter H

      Reply

Leave a Comment