What is Bitcoin?

Well, one of the things I’ll say here is I think people often have a hard time figuring out what Bitcoin is. So they like to compare it to things that they already see. Is it like this stock? Is it like gold? Is it, but the problem is. It’s so many things. I think you have to really say it’s something unique in and of itself.

 

It’s a monetary network, a decentralized monitoring and work. It’s a protocol like the internet of course, has a money characteristics, very strong as a store of value, some value as a medium of exchange. It has the ability to be a unit of account. Although right now it’s, doesn’t really have a lot of that.

 

And I think when people think about, should I put some of my net worth into it, how do I think about how do I evaluate it? It gets really difficult. And I think people get stuck on that. I say that you have to think about it completely differently if you’re a trader type person, which I am not. But if you are, it’s going to be very tricky because I think a lot of the things you think you may know about.

 

What a certain trading pattern looks like, or a certain shape of a curve or a certain pattern. You may see that in Bitcoin and say, oh, if this was happening in a stock, it would mean that I buy, or I sell, or I do this, but. Don’t think that you can apply those same curves to Bitcoin. It might work one time and then be an absolute dumpster fire.

 

The next time Bitcoin doesn’t follow those patterns. And again, it’s not a company, there’s no leader. It has no head. It isn’t beholden to anybody. That’s a big thing. But the last thing I’ll say about it here is this is the way I look at it. I don’t measure it in dollars. So I view Bitcoin as in the merging parallel financial universe.

 

And if I move some part of my wealth, From the existing, see out universe, primarily dollar base. And I move it over into the Bitcoin universe. I don’t intend on it ever going back. Okay. That I am not. In fact, I don’t like to use the expression. I bought Bitcoin. I’m more likely to say I sold my dollars and acquired Bitcoin.

 

And that’s one thing I think people often. Kind of mistake when they think about money is they forget that it’s always a two-sided transaction. Whether you’re buying a house or a pack of gum, you are selling your dollars and you’re getting this other thing, whether it’s a commodity or an asset. So if you bring.

 

That if, if let’s say it was an asset, when you bring that asset back to dollars, you’re bringing it back into this scary thing. We’ve talked about inflation a little bit already. You’re bringing it back to this thing that is not working for you. So if you do that, you better get it somewhere else quickly.

 

Because it’s a horrible store of value. It may be one of the worst stores of value of all time. And so, anyway, this is a important part of, I think, about trying to get the right mindset, to think about how Bitcoin works and, and how it might fit in your world. .

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