Investing in Bitcoin
Regardless of your previous knowledge, if you have read up this point, you have some familiarity with what Bitcoin is, where it stands in terms of the three functions of money, and what its advantages and disadvantages are versus other forms of money like fiat currencies and gold in terms of the ten characteristics of money. The question remains, why should one care?
There are many reasons many people care about Bitcoin. In this piece, I will only present one. Bitcoin presents an extraordinary investment opportunity. There are many reasons many people argue it is an extraordinary investment opportunity. Again, I will only present one. An investment in Bitcoin has asymmetric upside. In other words, an investment in Bitcoin has the potential to increase in value by much more than it can possibly decrease in value. The upside and downside are not the same. They are not symmetrical (hence “asymmetric upside”). If this still does not make sense, let me use an analogy that anyone should be able to comprehend.