Last Updated on August 23, 2020
I may well be wrong, but I don’t think Bitcoin will even be around in 20 years, though the Blockchain will certainly revolutionize the financial world in ways we can’t predict.
The fact is I am something of an expert in gold (plus coins and precious metals) and I think that they will still be serving as a “storehouse of value” and “medium of exchange” for the next few centuries.
Just like dot-com stocks greatly outperformed my old favorites Gold & Income Property (for a while before the bubble collapsed) I think there is a danger that some (or maybe all Crypto Currencies that we know today) just won’t make it for the long haul.
I got $100 worth of Bitcoin a while back. A few months later, it became worth $3,000. I am selling half and will “continue to stay in the game with the Casino’s Money.”
I heard that someone who took 10,000 Bitcoin for a Pizza at the beginning of the game would have over 5,000 Bitcoin. Do the math! If Bitcoin is worth $6000 one pizza could set you up for life. Crazy huh? If I can still multiply, that’s $30 MILLION! For a lousy Pizza Margarita! Without Pepperoni.
OK but remember this: A Black Tulip Bulb was once worth (for a while!) the equivalent of a $10 million home in Amsterdam. But Bitcoin or Tulips compared to gold coins? I prefer gold. It is infinitely more likely to be of considerable value in 20 years or 100 years from now than Bitcoin.
Why? It has intrinsic, solid value as jewelry, money, or in industry. Bitcoin is (to simplify) is just an electronic impulse that can (and probably will be) wiped out someday by someone pressing a few buttons. Even fiat, or paper money that is “legal tender” can always be used to pay taxes. Bitcoin? It is for the moment, a good medium of exchange. But it has no backing, and certainly not the 5,000+year history of being valued as gold is.
Should you buy Bitcoin? Sure, why not?
But consider it no safer than a bet on a horse-race. However, if you Think Like A Tycoon (one of the many books I wrote or edited), then buy some distress real estate in a good location, manage it well, and when you are 80 like me, you will be able to retire comfortably.