“Thirdly, early adopters mine or buy large proportions of the total supply at negligible costs while late adopters mine or buy negligible proportions at large costs. It follows that holders immediately have every incentive to get as many people to buy after them. Like stocks? Like stocks, but without the dividends or anything tangible in the real world. Congratulations, you got yourself a pyramid scheme.” —
https://www.cynicusrex.com/file/cryptocultscience.html
Most stocks do not pay dividends. If you do some research you will find that Bitcoin pays interest at rates higher than most dividend stocks.
By your definition real estate, stocks and precious metals are also multi-level marketing since early insiders profit at the expense of late-comers.
Also Bitcoin has something like 70 million users so less than 1% adoption. In other words everyone is still early.
I’ll read those links but please note when I refer to Bitcoin, I am excluding all other crypto.
Bitcoin truly is a special snowflake and if you don’t understand the difference between Bitcoin and Altcoins I would suggest doing some more research to understand what you may have missed.
When people talk about historical Bitcoin returns being attractive, they are talking about an extremely short history full of incredible variance and an uncertain legal future. You can’t easily make long term predictions based on that
11 years is extremely short? As for variance, yes sure over the short term but Bitcoin has 10x’d every other traditional investment on a long-term basis. You make long-term predictions based on things like scarcity, automated inflation policy, and other anti-inflationary properties.
Based on its historical investment returns as well as its inherent properties, I would argue that at this point a zero percent allocation into Bitcoin is objectively the wrong value.
