@Bitcoiners
Everyone has their own reasons for investing in Bitcoin, and we agree with all of them:
Bitcoin is a hedge against inflation
Bitcoin has no central bank to devalue the currency
Bitcoin is the only money we can truly own
Bitcoin diversifies investment portfolios
Bitcoin is non-fungible
Bitcoin is globally accessible
Bitcoin is censorship resistant
Bitcoin is gaining institutional adoption
Bitcoins are immortal, immutable, and immaterial capital immune to entropy, inflation, depreciation, quantitative easing, carry, and theft.
The price of Bitcoin has increased 1,000% in the last five years. Each one is currently worth about $100,000 USD.
Getting Started
If you don’t own any Bitcoin yet, don’t worry, you didn’t miss the boat. Nations, states, and large financial institutions are just beginning to adopt Bitcoin as their reserve currency. There are only 21 million bitcoins in the world, so each time a new institution trades in their US dollars for Bitcoin, the price will continue to rise.
One crude way to estimate how far the price will climb is to compare Bitcoin’s current market value to the total savings in the world held in US dollars. Savings in US dollars is the main competitor to Bitcoin.
@ChatGPT: If half of the US dollar savings in the world were exchanged for Bitcoin, what would the price of Bitcoin be?
ChatGPT: Estimating this involves a lot of assumptions. One common approach is as follows:
Assume that around $100 trillion in global savings is denominated in US dollars.
Half of that would be $50 trillion.
Bitcoin’s fixed supply is about 21 million coins.
Dividing $50 trillion by 21 million coins gives roughly $2.4 million per bitcoin.
If that seems preposterous, ask yourself why the government that issues US dollars doesn’t want to hold US dollars. There’s already a bill in the US Senate to establish a strategic Bitcoin reserve for the United States. The State of Texas has proposed a bill like that too.
When our federal and state governments start buying Bitcoin, many of their citizens will too. So the price of a bitcoin could easily hit $1-10 million US dollars when governments get involved.
This forecast could actually be low because Bitcoin has better wealth preservation than gold or real estate. If you want to learn more, start with this keynote speech by Michael Saylor. His base case for the price of Bitcoin in 2045 is $13 million per bitcoin. His bull case is $49 million per bitcoin. (37 mins)
If you are ready to start saving in Bitcoin instead of US dollars, there are a several ways to do this.
If you want to hold Bitcoin without being responsible for the private keys, use River. River guarantees full Bitcoin reserves. Each time you buy Bitcoin from River, they actually buy bitcoins so they always remain solvent. In contrast, Robinhood and Coinbase don’t guarantee full Bitcoin reserves, so if they go out of business, you don’t have anymore Bitcoin.
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We don’t make any money recommending River to you, it’s just the safest way for you to hold Bitcoin without private keys.
An alternative way to hold Bitcoin without private keys is to invest in Michael Saylor’s company, Microstrategy (MSTR). The strategy at Microstrategy is simple: Buy Bitcoin. In the last 48 months, that strategy has created one of the most successful companies on Earth.
Microstrategy didn’t invent any revolutionary microchips. They don’t have self driving cars. They don’t sell everyone’s privacy data using opaque terms of service agreements like Meta and Google. Microstrategy simply owns 2.4% of all the bitcoins that will ever exist.
This liquidity comes with a significant markup though. Microstrategy currently owns 500,000 bitcoins, which are worth about $50 billion dollars. But the stock’s market cap is $83 billion. So Wall Street is paying 39.7% over market to hold Bitcoin as a stock.
If you want to move some of your Individual Retirement Accounts into Bitcoin, we recommend Unchained Capital in Austin. They will hold your Bitcoin in a multi-signature wallet where you hold two private keys and they hold a third which prevents you from spending your Bitcoin until you retire.
We know this is scary and complicated, so feel free to email us with any questions:
Securing Your Bitcoin
Once you own enough Bitcoin to matter, you need to protect your private keys by removing them from the Internet all together.
The computer viruses we have experienced so far are nothing compared to the “AI plagues” that are coming. When cybercriminals incorporate DeepSeek and Llama into their existing scams, everything connected to the Internet will be at risk.
Investing Your Bitcoin
There’s no reason to ever sell your Bitcoin. But there may be an important reason to invest some it: Bitcoin liquidity.
If you have less than 10