Back in October 2011, The Economist, along with many others, declared Bitcoin a bubble when its value was $30. Fast-forward 12 years, and Bitcoin is soaring above $30,000. If you’re among those who have continually dismissed Bitcoin as a fad or a bubble, maybe now is the time to question why you’ve been mistaken so far.
Instead of fixating on the price, let’s dive deeper into understanding what Bitcoin truly is. It’s the elegant answer to a long-standing global conundrum: how to store wealth without the looming risk of debasement and seizure. It is a technological triumph akin to the engineering prowess behind Teslas and iPhones. Only this time, the engineering feat is designed to combat one of the world’s most substantial problems — preserving value.
Investing in technology stocks is considered the norm today. However, when it comes to Bitcoin — a technological solution to a worldwide issue — many are quick to ridicule or dismiss it. A large part of the population continues to store their wealth in assets that are susceptible to inflation and increasingly whimsical government seizures. Whether it’s sovereign debt, equities, real estate, gold, or fine art, they all possess flaws as wealth stores — an issue that Bitcoin aims to rectify.
The critics often argue that “Bitcoin has no intrinsic value!” But let’s examine why…
