Bitcoin Is Not An Investment -- it’s Exit From the Corrupt Fiat System
In a Bitcoin or sound money economy, saving and investing represent distinctly different concepts:
Bitcoin Is Not An Investment!
In a Bitcoin or sound money economy, saving and investing represent distinctly different concepts:
Savings grow in value parallel to economic growth and remain detached from economic activities. True savings are only embodied in monetary assets such as Bitcoin and gold, or gold-backed certificates.
Conversely, investors, speculators, and gamblers place their assets in banks, bonds, mutual funds, and ETFs. They aim for their portfolio to outperform in terms of risk or returns. Similarly, holding physical cash equates to speculating on monetary policy.
It's essential to understand that storing money in a fractional reserve bank does not constitute savings; it's primarily speculative real estate and business investment. In our current fiat money economy, holding assets in anything other than sound money (Bitcoin or gold) makes one a speculator, gambler, or investor. Before Bitcoin, fiat currency compelled everyone to adopt these roles to safeguard their wealth.
Owning Bitcoin is not an investment. It is true savings and an Exit from the corrupt fiat system.
Money-ness vs Monetary Quality
It’s important to understand the relationship between money-ness (acceptance as money) and monetary quality (inherent suitability as money).
An asset with high quality tends to acquire money-ness, but there can be temporary inconsistency between them.
Dollars have high moneyness, but falling quality. Bitcoin has low moneyness but high inherent quality. The very fact that the dollar has the highest moneyness in the world is leading to its own demise, as the US enters a debt spiral backed by the dollar’s dominance. Bitcoin has virtually zero moneyness, but its rapidly growing value represents a belief that it has the potential to acquire money-ness.
You may agree with this belief or not, but it’s a category error to confuse moneyness with monetary quality.