Suppose you had $1,000 you wanted to invest or save for the long run and I offer you two investment opportunities.
In Opportunity 1, you get to buy 1% of a $100,000 house for $1,000. The owner has the right to sell 99 other shares of the house if he wants. The price of those shares may vary, as the value of the house fluctuates. But your 1% share of the house stays the same.
When the house sells, you will receive 1% of the proceeds. If the house later sells for $200,000 you double your money. But if it sells for $50,000 you lose half of your money.
Opportunity 2 is identical to Opportunity 1 with one exception.
As with Opportunity 1, the owner of this house will take your $1,000 and give you 1% of the house.
However this time the owner is not limited to selling only 99 more shares of the house. This time he can sell as many more shares of the house as he wants. And each time he sells another share, your 1% ownership is diluted.
After he sells 200 shares, you now own a mere 0.005% (half-of-a-percent) of the house.
This time, even if the house doubles in value, when it sells, you only get your original $1,000 back.
And if the house drops in value to $50,000 you get only $250 back!
The original seller made his $200,000 while you lose 75% of the value you originally had.
There’s no way you would choose Option 2,
Opportunity 1 is Bitcoin.
Opportunity 2 is the US dollar and any other fiat currency.
You’ve just learned about the single most important quality of Bitcoin: Absolute scarcity.
Bitcoin is the only thing in existence – in all of history – that has absolute scarcity.
There will never, ever be more than 21,000,000 Bitcoin. And therefore, when you buy even a single bitcoin you know that your ownership percentage of the whole will never be diluted.
Over time, more and more people will come to understand what you just learned – that bitcoin can not be inflated beyond 21,000,000.
And as more and more people understand this, they will want to own some to protect and store their earnings for the future. Demand will continue to rise and with it, the price they will be willing to pay.
Because no one, when given a choice, will want to save their money is an asset that can be inflated by a third party when instead they can save their money in an asset that is absolutely scarce.
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Now, you probably have a whole bunch of questions, such as:
- “Are you suggesting that I buy bitcoin instead of stocks or real estate or a small business?”
- “Maybe Bitcoin is scarce, but what about all the other cryptocurrencies? Maybe it’s better to buy one of the newer coins that haven’t yet appreciated as much as Bitcoin?”
- “How can Bitcoin be worth anything when it’s not backed by anything? Isn’t it just a big bubble or a ponzi scheme?”
- “Can you actually buy anything with Bitcoin?”
- “Is Bitcoin a store of value or a currency?”
And dozens of other questions you may have.
My aim on WhyBuyBitcoin.money is to answer all your questions – plus many more you haven’t thought of.
I must emphasize that nothing on this site is investment advice. While it is my personal opinion that everyone should own at least some Bitcoin, that is only my personal opinion.
You, of course, need to do your own research and consult with your own advisors until you make the right decision for you.
And when you’re ready to buy your first $100 of Bitcoin, or $1,000 – or more, I recommend you buy from the people at Swan who will treat you as well as they’ve treated me.
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