Attention, fellow bitcoin wealthy plebs; I’ve been summoned to write about the corn, and there is one topic that’s constantly in the back of my mind, creeping into every decision:
The Bitcoin opportunity cost.
Whether you’ve just started your journey down the rabbit hole or you’re already telling billionaires to “have fun staying poor,” by now, you’ve learned about the functions and characteristics of money. This is one of the first things about Bitcoin that stood out to me, as I hadn’t learned about it before. The money a society uses should function as a store of value, a medium of exchange, and a unit of account. Diving deeper, I learned about money’s different characteristics (scarcity, divisibility, transferability, etc.) and started to understand how societies grade money based on these characteristics to decide which forms of it are more desirable than others.
Many have come to the conclusion that Bitcoin earns the best overall grade on the characteristics-of-money test, and this makes it the best form of money ever (cc: @thisisbullish). I fully subscribe to the thesis that bitcoin the asset is currently functioning as the best store of value in existence, and that this delays bitcoin from fulfilling the other two functions of money. Why would people use bitcoin to exchange value at scale when it is serving as the best store of value right now? In the future, when Bitcoin’s volatility calms down and global adoption is above 80 percent, people won’t feel like they’re giving up generational wealth when they use bitcoin as a medium of exchange, and then Bitcoin the network will shine. This is all to say that we are still very much in the adoption phase, and we are lucky to be here this early.
If you agree with that thinking, you may have entered into a new wormhole mindset in the last few years, as I did. When you go down this wormhole, you stop thinking about bitcoin as an investment, which implies you’re trying to exit at some…