Thread by @businessbarista

I recently invested some $$ in Bitcoin.

Here's why 🧵

First, why did it take me so long to buy?

I hadn’t taken the time to research BTC myself.

Never make a decision just because a bunch of people on Twitter tell you to.

Use loud voices as a sign to do research, not make decisions.

Second, I spent 30 hours researching prior to pulling the trigger. Why?

1) If I lost my investment it would definitely sting.

2) I think of Bitcoin as a gateway drug to other applications of blockchain technology.

So, why am I buying Bitcoin now?

The logic goes as follows...

Assumption 1:

Investors will seek a store of value as inflation goes up.

With inflation, $1 today will be worth less tomorrow.

Having an instrument to preserve the value of your dollar is important for wealth preservation.

Assumption 2:

Gold is the traditional store of value, but there are limitations.

In physical form, gold is illiquid & cumbersome to store.

In financial form, gold suffers from third-party risk.

Assumption 3:

There will be appetite for a new store of value.

- One that is trustless & doesn't rely on any one person or institution

- One that is built for the digital age we live in

Assumption 4:

Bitcoin has the best chance of being that new store of value

It has reached a critical mass of trust.

Trust—not intrinsic value—will determine the next store of value.

And Bitcoin has a head start in achieving narrative-driven value.

These four assumptions are why I bought Bitcoin.

But what are the risks?

1) Trust

Bitcoin will live or die based on trust.

2) Environmental concerns

Smart people have said it's bad for the environment.

Others have said it's good.

I still need to do more homework on this one.

3) Government regulation

Obv China, but other countries as well.

Given the risks, what's my overall conviction level?

8/10

Could that conviction change over time?

Absolutely.

As I learn more about Bitcoin, blockchain, and what drives economies, it undoubtably will change.

I'm not a Bitcoin expert nor do I hope to make you a bull.

I just wanted to share my approach for making an investment decision.

And I welcome any questions & feedback that drive productive conversation around Bitcoin as an investment.

If you enjoyed this thread, follow me for more here:

@businessbarista

And if you want my full podcast episode on investing in Bitcoin, take a listen here:

bit.ly/3vUe41V