Bitcoin, the story of a social elevator
Bitcoin, the story of a social elevator
Bitcoin

Bitcoin, the story of a social elevator

By George Michael Belardinelli - 3 Oct 2022

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Time and time again, when people talk about safe haven assets, sooner or later Gold is invoked in all its facets and for the past few years also Bitcoin. The right term is not safe haven asset but “social elevator,” as long as you hold and are not in a hurry.

The history of Bitcoin, amid price and million-dollar investments

In a recent tweet, the always enlightening Watcher Guru points out a striking fact that speaks volumes about Bitcoin‘s attractive power, its deflationary nature, and how it is probably the financial invention of the century. 

Watcher Guru’s tweet reported:

“Fun fact: if you invested 1000 dollar in #Bitcoin 10 years ago, you’d have 1.556.000 today.”

1000 US dollars invested in the most capitalized digital currency (BTC) today would be worth $1.5 million, a 155,600% yield.

Aside from a few unicorns (in financial jargon an investment with huge yields in the short/medium term that one never imagined possible) we can count on one hand yields comparable to those of Bitcoin, Apple if taken at its initial listing, Tesla etc. but if we are talking about both fiat and crypto currencies, 13 years ago Satoshi created a real marvel. 

Years of criticism and detractors have systematically brought an answer as effective as it is attractive, value. 

Bitcoin’s value from its inception to the present has grown 25,756,000% and $1,000 invested 10 years ago could have made anyone a millionaire, a figure that releases the currency in question from the notion of a safe haven asset and places it on a higher plane, that of a true social elevator. 

Such a great ability to yield as an investment, however, is not always guaranteed if the approach is that of a trader; a professional and a discerning eye can certainly have great results with this practice as well, but accumulating BTC from a long-term perspective always hits the mark for at least two reasons. 

The successful nature of Bitcoin

One of the main reasons behind the success of Digital Gold is certainly its deflationary nature; even though it is now common knowledge, it is worth mentioning that this currency experiences a halving event every four years, in other words, a reduction in the number of BTS mined by half.

The second reason for BTC’s tendency to grow is its numbering, the currency in fact has only 21 million units, which are not yet all mined (the cryptocurrency is based on Proof of Work that involves mining). 

If we consider its growing adoption in the world and the number of people potentially reachable (7 billion) its value can only be expected to grow precisely because of its scarcity characteristic. 

However, detractors just like weeds are hard to weed out, and we find those responding with humor (playing with numbers) as follows:

“Fun Fact: if you invested 1556000 dollar in #Bitcoin 1 year ago, you’d have 1000 dollar today.”

Given the Bear market that has lasted for more than a year now, the conflict in Ukraine that threatens to become a world war, the cost of commodities and energy in addition to the ubiquitous inflation, Bitcoin has found a fair correlation with the S&P 500 in recent years and has fallen from $64,000 to $19,575 at the time of writing, with a loss of almost 70% in value

Hence the considerations above make sense, losing is possible of course but in the long run this eventuality is swept away by the facts, removed from the black swans (catastrophic and imponderable financial events) that can be an anomaly, in the long run Bitcoin always brings wealth as long as one considers it as an asset to hold. 

The easy ride to wealth has always been a pipe dream, far from giving investment guidance, but based on the data, from its creation to the present, Satoshi’s currency has only given joy in the long run to those who believed in it for a medium/long time frame. 

George Michael Belardinelli

A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality

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