Q&A #5: Do you see crypto as an investment? Or, mostly as money?

Questions (Q) & Conversation (C) With the Master Grizzly

This is a question I received, by email reply last week, from a fellow BB reader, Thomas J. His comment / question was edited, slightly, for clarity. The sentence starting with C: (Conversation) is me!

Q: I already know your view on Gold, as you see it as “money” and not an investment, per se. And I get that it’s not super easy to use gold or silver coins in day-to-day transactions. But neither is it convenient to use crypto?

C: Hey Thomas. Thank you for writing in. So, you’re mostly on target with this, since it appears you have already read my full discourse on the Midas Metal, and it’s use as what I will always see as “backup money.”

The difference with Bitcoin and stablecoins, especially, is that with BTC or, say USDC or USDT, I can transact with and spend these digital currencies at will, using various methods that are very convenient.

For instance, there is the Coinbase Card. And the BitPay Card is currently under improvement and will be ready soon, according to my sources (note: I’ve used their VISA card since 2017 with no issues whatsoever).

While these physical ‘crypto-to-dollars’ debit cards can be a no-brainer to use — just like any other Mastercard or VISA card — the way I see it is like this: in our internet-driven world, “money” in its purest functional form (as a medium of exchange and unit of account) is in 1’s & 0’s format anyway.

Unless you think The Man will find a way to shove the toothpaste (the Internet) back in the tube (into oblivion), as Lyn Alden rightly points out, the current adoption cycle for Bitcoin is about optionality — meaning, to the extent that it continues to be decentralized and secure, BTC is… indefinite globally-portable liquid money. Merchants and any individuals holding a crypto wallet, across the Globe, will accept it.

And brokers (exchanges / platforms) will always provide a way to convert it into your local fiat currency of choice.

Did you read my review of this endorsed provider (see Step #2 there — accessible to Pro subscribers), which allows you to do the following:

• Off-ramp or pay everyday bills with any coin or token (BTC included), directly from your own DeFi (self-custodial) wallet.

• Off-ramp crypto to your traditional bank in one-step. No need to unwind your crypto positions or convert your assets into traditional currencies. This eliminates multiple swaps and unnecessary steps, allowing you to save both time and money on fees.

• Off-ramp fiat using this provider’s prepaid VISA digital card. Once loaded with crypto, you can shop online, or add it to your mobile wallet like Apple Pay or Google Wallet to pay for things in the real world.

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At the start of each day, we’re waking up to a digitally-connected global economy. One where more and more everyday citizens are finding options for better money that has liquidity, value and salability tied to it.

Crypto, especially Bitcoin, is leading the charge. However, if and when it should all come crashing down, then quite frankly, I don’t see Gold doing much to save the day.

As I mentioned in my discourse on the Midas Metal, if there does come a zombie apocalypse or Mad Max style doomsday scenario (which, I suppose, would be mutually-inclusive to the collapse of the current banking system), any form of money (gold coins and Bitcoin included) are the last thing people will clamor for.

In that situation, if you have some bullets, food, seeds and/or mini bottles of liquor stored up, you'll control the world. ;)

To end my answer, here’s a quip from Lyn Alden that edifies my like-minded view on this topic:

Unlike most investments, I personally treat my cold-storage bitcoin holdings like money, rather than like an investment. I’ve recommended it and owned it since April 2020 at $6,900 per coin, and asking me when I would sell the bulk of my bitcoin is like asking when I would sell the bulk of my dollars.

As long as I work in the United States and the dollar is their legal tender, I’ll be using dollars in some capacity. Similarly, as long as the Bitcoin network continues to be decentralized, secure, and the best at what it does, I’ll be using bitcoin in some capacity.

When would I sell some of my globally-portable liquid money with a hard-capped supply? Either if there is a problem with the network, or because there is something I want to buy with my money that appeals to me more than savings, like a consumer good or an investment security. — Lyn Alden

🪙 EXTRA CREDIT

In this excellent video, Amy dives into the fundamentals of money, the pitfalls of fiat currency, and why Bitcoin's scarcity and security make it superior to gold.

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🔗 RELATED:

My Q&A Archives:
https://bearsbulletins.substack.com/t/q-and-a

My Bitcoin / Crypto posts:
https://bearsbulletins.substack.com/t/bitcoin

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