Twitter got hacked yesterday. Major accounts (Pres. Obama, Biden, Gates, Musk, etc…) were tweeting the below.
Obviously, the hackers never doubled anyone’s bitcoin, but it did bring bitcoin back to the headlines. The hackers have made $100k+ already from this heist. Some will jump on this as another opportunity to bash bitcoin as a scam, but it is important to understand that the reason these scammers used bitcoin instead of fiat currencies, might be the reason you will need bitcoin in the future.
Paul Krugman states cryptocurrencies like bitcoin are “something of a cult” based in “paranoid fantasies” of government power. This is a semi mainstream view. I might be crazy, but I don’t think being worried about abuse of government power is paranoid or a fantasy. History has shown this to be the case. I think bitcoin is a hedge against the government. History has shown that as governments lose control, they print money. Maybe I am overly worried, but the best part of bitcoin is it isn’t just for those scared of the government.
Some of anti-bitcoin sentiment comes from dislike of the bitcoin community. Bitcoin goes against mainstream ideas. Therefore, it attracts cultural dissidents. I say this because, bitcoin is different. Normally, in investing, a companies following is a general representation of the stock itself (see $TSLA vs $TSLAQ). Bitcoin is not its community. I state this for clarity, not to bash the bitcoin community.
Bitcoin has optionality. I view it as antifragile. When the world shakes, bitcoin is steady. It’s just there, a protocol. It is the anti-fed. We know what bitcoin is and we know what it will do. We just don’t know when, or if, we will ever need it. However, when that time comes, bitcoin will be there. For those reasons, I view bitcoin as a hedge with upside.
Bitcoin could moon for any number of reasons. Whether it be hyperinflation, censorship, need for a “store” of value or just internet bros backing crypto. For these reasons, approximately 10% of my investments are in crypto. At times, this feels uncomfortably high, but I’ll let it ride.