AUTHOR: Dan Murray on 5/31/2025 FIRST: Robert Scoble on 6/1/2025 | RECENT: V Saraf on 10/1/2025
Comments
Add a topic bullet for Bitcoin. Start posting objective articles on Bitcoin. Please explain the difference between Bitcoin and other cryptocurrencies because there are REAL and SIGNIFICANT design differences that everyone needs to understand and appreciate. Humble Dollar is an excellent resource for investors, but your content on this new asset (Bitcoin) is lacking.
Bitcoin's design has a few more desirable features than Mr Grossman suggests. First, the supply is limited to 21 million units. This means its inflation rate is known to be less than 1% today, decreasing over time to 0%. That makes it a good store of value and a hedge against fiat currencies like the US Dollar. Second, it's transferable anywhere globally at a very low cost. Third, suppose you live in a country with even more irresponsible fiscal management than the United States. In that case, you can protect the value of your earnings by transferring whatever local currency you are paid into BTC. Over time, the dismissive posts like this one by Mr Grossman will be proven shortsighted. The question in my mind is how an investment manager at a wealth management firm can fail to appreciate these design features.
Bitcoin provides an option that wasn't available 15 years ago. It has value because it offers an alternative to a fiat currency being run into the ground via irresponsible fiscal governance. It may grow to the point where treasury bills and bonds must compete with it for investors' money. That could pressure legislators to be more responsible with the federal budget in the next decade. The US Dollar has value because the government decreed it a legal tender. Bitcoin has value due to growing adoption and limited supply.
Bitcoin is a digital gold but with the additional attributes of being easily veritable, decentralized, and very early in its adoption cycle. It is a harder asset with a known inflation rate and a capped supply. Gold's market cap $22 trillion. Bitcoin's market cap $2 trillion with under 2 million addresses holding more than $100,000 worth of bitcoin. If you don’t hold any Bitcoin, you should.
For the skeptics...I allocated 5% of my portfolio to BTC five years ago. It's now 11% via growth. It's not that the rest of my portfolio hasn't grown. I carry many T-bills and low-beta dividend stocks in tax-deferred accounts. Bitcoin is my Alpha.
I invest in Bitcoin and Solana. Bitcoin is the only hard asset in crypto. Ethereum is transactional, as is Solana. Solana can handle much higher transaction volume. I view altcoins (ETH, SOL, others) as unregulated securities without 3rd party financial verification, hence much riskier. My advice is to buy Bitcoin and hold it for the long haul. I'm up substantially over the past five years. If you look at the CAGR of Bitcoin over the past decade, it's a top-two asset. Eight of the last 11 years, it's been the #1 performing asset class. In other years, it's been dead last. But, even with those down years, BTC has a CAGR of over 60%. I view BTC as a long-term replacement for Treasury Bonds. The dollar may be in its terminal decade if the Legislative Branch doesn't become fiscally responsible. There isn't much evidence in that direction.
My wife clings to the old ways, but I'm managing the money now, and everything is electronic. I only pay three bills every month via ACH. Everything is paid using credit cards because we earn 2% to 6% on those cards via rebates. I treat them as the new "savings account."
Comments
Add a topic bullet for Bitcoin. Start posting objective articles on Bitcoin. Please explain the difference between Bitcoin and other cryptocurrencies because there are REAL and SIGNIFICANT design differences that everyone needs to understand and appreciate. Humble Dollar is an excellent resource for investors, but your content on this new asset (Bitcoin) is lacking.
Post: Start Here, Go Anywhere
Link to comment from May 31, 2025
Bitcoin's design has a few more desirable features than Mr Grossman suggests. First, the supply is limited to 21 million units. This means its inflation rate is known to be less than 1% today, decreasing over time to 0%. That makes it a good store of value and a hedge against fiat currencies like the US Dollar. Second, it's transferable anywhere globally at a very low cost. Third, suppose you live in a country with even more irresponsible fiscal management than the United States. In that case, you can protect the value of your earnings by transferring whatever local currency you are paid into BTC. Over time, the dismissive posts like this one by Mr Grossman will be proven shortsighted. The question in my mind is how an investment manager at a wealth management firm can fail to appreciate these design features. Bitcoin provides an option that wasn't available 15 years ago. It has value because it offers an alternative to a fiat currency being run into the ground via irresponsible fiscal governance. It may grow to the point where treasury bills and bonds must compete with it for investors' money. That could pressure legislators to be more responsible with the federal budget in the next decade. The US Dollar has value because the government decreed it a legal tender. Bitcoin has value due to growing adoption and limited supply.
Post: Up Because It’s Up
Link to comment from May 31, 2025
Bitcoin is a digital gold but with the additional attributes of being easily veritable, decentralized, and very early in its adoption cycle. It is a harder asset with a known inflation rate and a capped supply. Gold's market cap $22 trillion. Bitcoin's market cap $2 trillion with under 2 million addresses holding more than $100,000 worth of bitcoin. If you don’t hold any Bitcoin, you should.
Post: Go for the Gold?
Link to comment from May 10, 2025
For the skeptics...I allocated 5% of my portfolio to BTC five years ago. It's now 11% via growth. It's not that the rest of my portfolio hasn't grown. I carry many T-bills and low-beta dividend stocks in tax-deferred accounts. Bitcoin is my Alpha.
Post: Any Crypto Investors?
Link to comment from May 7, 2025
I invest in Bitcoin and Solana. Bitcoin is the only hard asset in crypto. Ethereum is transactional, as is Solana. Solana can handle much higher transaction volume. I view altcoins (ETH, SOL, others) as unregulated securities without 3rd party financial verification, hence much riskier. My advice is to buy Bitcoin and hold it for the long haul. I'm up substantially over the past five years. If you look at the CAGR of Bitcoin over the past decade, it's a top-two asset. Eight of the last 11 years, it's been the #1 performing asset class. In other years, it's been dead last. But, even with those down years, BTC has a CAGR of over 60%. I view BTC as a long-term replacement for Treasury Bonds. The dollar may be in its terminal decade if the Legislative Branch doesn't become fiscally responsible. There isn't much evidence in that direction.
Post: Any Crypto Investors?
Link to comment from May 7, 2025
My wife clings to the old ways, but I'm managing the money now, and everything is electronic. I only pay three bills every month via ACH. Everything is paid using credit cards because we earn 2% to 6% on those cards via rebates. I treat them as the new "savings account."
Post: It’s 2025. Do you send checks by mail?
Link to comment from May 7, 2025