Why I’m Not Investing In Bitcoin

I’m going to assume the reader knows enough about Bitcoin that I don’t need to go into the basic facts around the cryptocurrency. Others have already done, and the worldwide media attention should make even the most ignorant normie sufficiently informed.

Despite its skyrocketing price (aside from today’s drop) I have refused to invest in Bitcoin, and I have no plans to do so at anytime. If others want to try their luck, my best to them all. But I don’t think it’s prudent for the average person or those who don’t like taking extreme risks.

At the end of the day, Bitcoin has no intrinsic value. You can buy and sell with it, but it’s still not money. As its description suggests, it is a currency. Currency may be a means of exchange, but it’s not money. It’s an alternative to the government currencies that have lost an incredible amount of value over the years.

People are trying to find places to move their wealth and preserve it. Unless you have that intuitive knowledge of when to buy and sell as befitting a good investor, Bitcoin is a risky place to do that.

For all the grief that silver and gold get, they are tangible goods. They are physical. An EMP or power loss won’t destroy them or make them inaccessible. And unlike Bitcoin, they have other uses that make them valuable aside from their use as currency.

And this is what separates fake money from real money; the latter has utility purpose beyond a means of exchange.

Precious metals have that. It’s why they have been used as money for thousands of years, and will continue to be valuable indefinitely.

Bitcoin is not good for anything other than the means of exchange, just like the U.S. dollar.

Now, if you don’t want to invest in gold and silver, that is fine. There are plenty of other places to put your wealth.

Guns and ammo are one of the best investments you’ll ever make. Firearms, if properly cared for and maintained, never go down in value, and buyers will be willing to pay a higher price from private sales that involve no registration forms as you would at a sporting goods store. Ammo prices are bound to go up; I found a box of .22 LR from the 1980s that cost one tenth of today’s price.

Additionally, liquor with a long-term shelf life is another product where you’re bound to preserve wealth. A large stash of good hooch in the basement or cellar has its mobility downsides, but it’s been used as money; during the Weimer Republic hyperinflation period, a bottle of Cognac was more or less a $100 bill.

The other problem with Bitcoin is that it is too good of a system for the government to let it stand unchallenged. It allows the average person a way to anonymously transfer their wealth out of fiat currency into an untraceable, nontaxable cryptocurrency. Governments hate, hate, hate what they can’t track and tax.

Also, it makes it harder for governments to track people’s behavior. They want all currency digitized so it’s fully traceable. Bitcoin thwarts this.

I can only speculate as to how, but sooner or later the state will intervene to destabilize Bitcoin or make it too risky for people to use. They may very well intentionally get into it and attempt to crash the price, then buy it all up themselves. Or, they could alter the IRS tax code to include obscure, but legally devastating consequences for anyone who buys Bitcoin and doesn’t report it.

Like I said, I don’t know what will happen, but this is the contrarian in me speaking right now. Everyone is looking at Bitcoin, including the state. I want to put my wealth in something that is highly likely to retain its value, be useful as money but also have outside utility if need be, and isn’t going to attract unwanted attention.

This isn’t me giving you or anyone financial advice; it’s me expressing reservations that make me unwilling to buy Bitcoin and why I’m transferring some of my wealth in dollars into other commodities that have benefits Bitcoin does not have. If people think it’s worth the risks, it’s no skin off my nose and I wish them all the luck.

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One Response to Why I’m Not Investing In Bitcoin

  1. Pingback: Missing The Moral Of Christmas Films | The Anarchist Notebook

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