My Gamble on Bitcoin: A Value Investor's Journey into Cryptocurrency

I bring this up because early experiences often shape a person's perspective. For me at that time, my first trip to Las Vegas was perfect.

The author, a self-proclaimed value investor, initially hesitated to invest in Bitcoin due to its speculative nature and lack of intrinsic value. However, his sons' belief in cryptocurrency and its increasing adoption led him to reconsider. He began investing in Grayscale Bitcoin Trust (GBTC) in 2020 and gradually increased his holdings in Bitcoin and Ethereum ETFs.

Despite experiencing significant paper losses during the crypto market downturn of 2022, the author continued to add to his positions, eventually purchasing BITB at a higher price point as Bitcoin's value rose. He rationalized his actions by highlighting the changing perceptions of value among generations.

Growing up in an analog era, the author associates value with tangible assets like gold, which has maintained its worth throughout his lifetime. In contrast, his sons, being "digital natives," view Bitcoin as a valuable asset due to its continuous presence in their world.

While acknowledging the vast number of cryptocurrencies and the risk of most eventually failing, the author believes Bitcoin and Ethereum have gained legitimacy and will likely become the gold and silver of the digital economy. He anticipates that cryptocurrency prices will continue to rise due to increasing demand, particularly from younger generations who view Bitcoin as a valuable asset.

The author emphasizes the importance of investing only what one can afford to lose, especially in highly risky markets like cryptocurrency. He also highlights the key role of continuous adoption in determining the value of an asset, whether it be a store of value or a medium of exchange.