2/9/22
By Mark Sauer
I have been a fan of Bitcoin for a while now. It’s been considered a fringe/speculative investment by many of my clients, and investors alike, whom with I’ve discussed its future, mass adoption.
Bitcoin is a unique asset. It’s not a traditional equity/stock. It’s not “gold” – though it is starting to be regarded as “digital gold” – and it’s not like any of its ‘crypto currency’ (digital asset) counter parts. It’s entirely in a class of its own.
Why? First let me tell you what other digital assets should be regarded as.
Ethereum, Cardona, Solana and Ripple – to name a few you may have heard of – are blockchain technology companies who’s equity/stock trade between digital wallets and on digital asset exchanges. It’s holders (investors) seek to speculated about its value relative to its derived utility – both present and future realized – the underlying company creates for the world. These digital assets can be traded and exchanged with far greater liquidity than any traditional, physical asset. For this reason – and in my opinion – this is why we refer to them as ‘currencies’. Because they are extremely liquid in the ‘web3’ or ‘digital asset’ world. However, for sake of understanding their purpose – consider them equity/stock in a blockchain technology company. Bitcoin is NOT this.
Bitcoin is a unique digital asset. It has no underlying utility other than being Bitcoin. It’s not a blockchain technology company. The code base of Bitcoin will never be used to build some deeply intelligent blockchain driven system. There is a finite number of Bitcoin – only 21 million will ever be created – which, similar to gold, gives it commoditized value. Bitcoin does not have a CEO to rally behind. Its founder, Satoshi Nakamoto, is thought to be dead and his coins never to be circulated again. Which makes Bitcoin community-driven, not founder-driven – and for this reason, it embodies the ideal of “decentralization”.
I could ramble on about all of its unique character traits – these being just a few of my favorites – but I’ll stop there. Below is a link to an article by Fidelity – about Bitcoin as a unique digital asset – that I’d suggest you take a look at. If you would like to connect with me further on this topic, or any other, please reach out. I look forward to hearing from you.
Fidelity Article:
Why Investors Need To Consider Bitcoin Separately From Other Digital Assets
Warmly,
Mark S Sauer
info@allonewealth.com
