Why Do I Keep Buying Bitcoin?

I hope your month got off to a great start. If not, then welcome to my blog; I hope this bores you to sleep so you can get your much-deserved rest. I read about the US debt surpassing its Gross Domestic Product (GDP) today and have been thinking about it all day. If you want to be bored, then keep reading what I have to say here. I know many think of words like "scam," "stupid," "foolish," and other ugly terms when they hear about Bitcoin. I have always known myself to be something of a contrarian, and this has only become more evident as I have grown older. In the past, I held onto beliefs just because I had the conviction, but now, I self-critique, test my stance against the literature, and hold convictions that are grounded in objectivity. I've had to hold some very uncomfortable positions because the truth behind them was very telling. Bitcoin is no different, and I'm perfectly okay with being labeled stupid, foolish, or a scammer.

Life is quite simple to live once you can quickly decide on and move on from what drains your energy. And that's it: energy. Because Bitcoin is all about energy. I've never been shy to admit that I'm not as capitalized as the guys on Wall Street to be going "all in" on Bitcoin. In fact, I learned a hard lesson some five years ago when I first got into the markets and went all in with my money at the very time I was supposed to stay away. Just like when I was growing up, if someone thought a goal was difficult to achieve, I went ahead and ensured I achieved it. I never back down, which is why I embarked on a mission to understand that which had plagued me. When you realize that fire can really burn you, you don't run away from it; you learn to adapt and use it to your advantage to do amazing things, like cooking a great meal, keeping warm, creating value, etc. I had a lot of responsibilities and recognized how difficult the fluctuating price of Bitcoin could make things. But you'll always be a "newbie" if you stay naive. You don't graduate from a newbie to a pro by running away. No, that's not how life works at all. Okay, enough philosophy on life. I just wanted to say: I'm calmer and more methodical now with how I deal with the fluctuating nature of Bitcoin’s price, and no matter what, I will never find myself in that situation again.

Take any payment made to anyone. Such a payment is made based on how that person is valued by the market. The market is quite balanced, despite how manipulated it can be. A teacher is paid based on the rate set by the market, just like a doctor or a warehouse worker loading containers. You can deny this as much as you want, but that is the reality. You don't all listen to the same musician, and as such, some musicians trend more than others. This leads to the market valuing them differently, with some earning more through concerts, streams, etc. How does this tie into Bitcoin’s valuation? Bitcoin is built on the premise of being an asset that cannot be inflated or controlled by any person or government entity. This characteristic, being inflation-proof and scarce (only 21 million will ever exist), happens to be the key foundation behind economics and the concept of economizing. In fact, we live our lives operating around these truths of economizing and exchanging value. When I read about the debt and inflation problems around the world, I understood why Bitcoin was so massive. I regretted ever selling the fraction of the coin I bought back when it was trading at $11,000. Currencies like the dollar, though thought of as "money," are not actually money in the truest sense. After realizing that its value decreases relative to every other asset over time and seeing how it decreased exponentially relative to Bitcoin, it became apparent why Bitcoin came onto the scene following the 2008 financial crisis.

Since 1913, the value of the dollar has dropped more than 93%, and in that time, assets like gold, stocks, and real estate have seen their values appreciate. All these assets have always existed, barring Bitcoin, which arrived in the wake of the 2008 crash. Bitcoin's value is reflected by the demand for it, and subsequently, its price has grown exponentially. In fact, everything else priced in Bitcoin has underperformed against it. I still have a post on here from 2022 talking about Bitcoin, but my take then was quite naive compared to what I seek to explain here. The idea is that when you learn about how our governments work and how the financial system functions, you can't help but be led to seek out assets. There are many debates about whether Bitcoin is an asset or a liability, but I, for one, view it as an asset due to what it solves: monetary policy abuse, and also because the demand for it says so. Its demand is not baseless, as it has traded up into the regions of $100,000 per Bitcoin.

There are many reasons based on Bitcoin's design that I could delve into, but I think it's simpler to understand based on the problem it solves. When your value is questioned, it's usually about what you bring to the table, and Bitcoin brings a lot of value. A company like Netflix didn't just reach over $100 a share because it was a nice-looking name; rather, many customers were buying and using the platform, and that collective buying pushed it to those levels. The same applies to Bitcoin, but to understand it, you must understand debt and money printing. I have always looked at Bitcoin as the tool that "polices" all central banks, including those printing dollars. Life is very simple: you cannot keep borrowing forever because, at some point, you'll be unable to pay it back. Governments borrow through central banks, and the only way they pay it back is by reducing the value of their currencies to "pay off" the debt. Since the beginning of time, organized communities have sought something everyone could trust that no one else could mess with. They went through many items: ivory, gemstones, salt, gold, etc. They finally settled on gold because it was scarce, universal, and impossible to increase its supply exponentially. Gold was the closest thing to what everyone dreamt of as a reference until Bitcoin came around. It is no surprise that markets, as I write this, value Bitcoin at $78,300 per coin and Gold at $4,600 per ounce. That's not to say one is "better," but just to point out what I said before: markets price higher what they value more, just like they do with our jobs. Life is easier to live when you realize it’s just about energy, which translates to the value we are either providing or taking.

It's midnight, so I've got to sleep. Thanks.