Bitcoin Won’t Make You Rich, and That’s Okay, Because That’s Not the Purpose of Bitcoin
By: Sylvain Saurel
Tags: Investing, Money, Economics, Bitcoin, Cryptocurrency

Bitcoin Won’t Make You Rich, and That’s Okay, Because That’s Not the Purpose of Bitcoin

Bitcoin is much more than a get rich quick scheme.

Bitcoin is much more than a simple financial investment with extraordinary return potential. I have written this over and over again. Yet, if you look at the numbers, Bitcoin has performed extraordinarily well over the past decade.

Bitcoin has transformed $1 invested in 2010 into $90K by the end of 2019.

For the few people who kept the Bitcoins they owned throughout the past decade, Bitcoin has allowed them to have a performance of +9,000,000%. In the investment world, this is unprecedented.

Even the most fabulous investments in Silicon Valley startups don’t yield such a return on investment in 10, 15, or 25 years. So the success of Bitcoin since 2010 is fabulous.

Such success has inevitably made some people think that Bitcoin is a get rich quick scheme.

Bitcoin is much more than just another financial investment

Thinking of Bitcoin in this way is the best way to get severe disillusionment. Bitcoin is not a startup. Bitcoin has much deeper goals: it aims to build a fairer and better world for all through a system with unique monetary attributes.

The monetary attributes of Bitcoin are supported by a disruptive technology: the Blockchain. Without Bitcoin, the Blockchain is not revolutionary, since it would be just another data storage technology.

Many people are already struggling to understand this first idea. But it is essential. Bitcoin without the Blockchain could not exist, but the Blockchain without Bitcoin has not yet proven its worth.

Thus, all Altcoins that claim to replace Bitcoin with potentially superior technologies are wrong. The real battle is that of monetary attributes, and in this field, the unique invention has already taken place with Bitcoin.

In the future, Bitcoin will remain and will be improved by an exceptional community of developers. Searching for the next Bitcoin is as incongruous as searching for the next Internet: it is a waste of time and money.

If Bitcoin is here to stay, Altcoins are not

Bitcoin will still be there in 25 years. The Altcoins, often vulgarly called Sh*tcoins, will have seen their value tend towards zero. It is only a matter of time.

Some explain that their favorite Altcoin has a higher potential return than Bitcoin over the next few months. This is possible. You can also go and play at the casino, and get lucky. You will then have a better return on your investment than with Bitcoin.

I think you get the idea here: buying Altcoins to invest is similar to gambling. You can win, but in the long run, you will always lose.

With Bitcoin, you have many more guarantees.

Although Bitcoin is not expected to be able to show a return of +9,000,000% over the next decade, Bitcoin does however give you the guarantee that your wealth will be protected over time in a way that is resistant to censorship.

This is the great need that emerges in 2020 following the economic crisis triggered by the coronavirus pandemic. Now that the flaws of the current monetary and financial system have been exposed, this need will continue to grow in the years to come.

MicroStrategy leads the way for many to follow with Bitcoin in the coming months

Just as MicroStrategy is making Bitcoin its primary treasury reserve asset with a $425 million investment, more and more companies will follow this strategy.

Likewise, more and more individuals will choose Bitcoin in the future.

Among all these people, a majority may think they will become rich. However, this is not the real purpose of Bitcoin. The purpose of Bitcoin is the one that Michael J. Saylor, the CEO of Micro Strategy, has recently put forward in explaining why he chose this strategy for his company.

Bitcoin is there to enable you to protect your wealth over time in a way that is resistant to censorship.

Bitcoin is the best hedge against the uncertainty of today’s world. In the face of the great monetary inflation that we are experiencing, the U.S. dollar is increasingly risky. You cannot bet on the world’s reserve currency. Bitcoin is your only real option.

As inflation continues to eat away at the value of the U.S. dollar, your Bitcoins will continue to grow in value.

Bitcoin is there to prevent you from getting poorer slowly but surely over time

No matter what happens, you are guaranteed that 1 Bitcoin purchased in 2020 will still represent 1 Bitcoin out of 21 million in 2050. By buying 38,250 BTC, Michael J. Saylor knows that his company will still own 0.182% of the total Bitcoin supply.

Considering that 4 million BTC are considered lost forever, MicroStrategy currently owns 0.225% of the total Bitcoin offering.

This is an incredible guarantee when you consider that the Bitcoin price is expected to reach $1 million in the next 20 to 30 years for two major reasons:

The law of supply and demand, with a supply that is inevitably shrinking and demand steadily increasing. The endless inflation of the U.S. dollar.

By buying Bitcoin, you are choosing to protect what you own from the flaws of the current system.

The real purpose of Bitcoin is to prevent you from becoming inevitably poorer over time. Bitcoin is a savings technology that allows you to opt for low time preference.

Therefore, when entering the Bitcoin world, you should be aware that its revolution will take time, and that you are here for a very important number of years. Soon you will even understand that becoming a Bitcoin HODLer is the best strategy to take full advantage of Bitcoin.

Conclusion

With time, you will come to the same conclusion as all Bitcoiners: Bitcoin HODLer one day, Bitcoin HODLer forever.

You’ll get to the bottom of it, and you’ll understand that you have no interest in exchanging your Bitcoins for the U.S. dollar. The best thing you can do is to keep them for as long as possible until the day the Bitcoin revolution is fully successful.

If that happens, we will then speak in Satoshi, and you will be able to use your Satoshis in everyday life. Until that time comes, the best thing you can do is to support the Bitcoin revolution by being a Bitcoin HODLer.

This strategy won’t make you rich quickly, but it will prevent you from slowly and surely becoming poorer in an inescapable way, as is the case with all fiat currencies.