Edited by chetan at 2023-9-4 20:01
Recently, a friend brought up the topic of Bitcoin investment, marking my second serious discussion on the matter. My friend was enthusiastic about investing in Bitcoin, always dreaming of getting rich overnight. However, I shattered his dreams with my harsh reality check, leading to a heated argument.
In my view, currency itself has no intrinsic value; its worth is based on contractual agreements. Bitcoin, I argued, is essentially a digital concept with nothing tangible backing it. Its claimed maximum supply is contingent on existing technology. While hackers haven't breached it yet, who knows when it might collapse due to immense financial incentives, evolving technological capabilities, and potential vulnerabilities.
My perspective has undergone a slight shift. Though I lack faith in Bitcoin, I've started to question the integrity of the current monetary system. With the continuous printing of US dollars and the volatility of currencies like the Thai Baht and the Indian Rupee (which can plummet by 40% overnight), many third-world countries experience system collapses with devastating consequences for the ordinary citizens.
Bitcoin might not be the dark horse we imagine. To put it simply, allocating a small portion of assets towards Bitcoin could be seen as buying insurance for the future, given the uncertainties surrounding traditional currencies.
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Post time 4-9-2023 17:30:30