Why I Changed My Mind About Bitcoin

I took time off mid December and with virtually no vacation options this year due to lockdowns and international travel bans, I decided to focus on expanding my physical and mental wellbeing.

Here’s the podcast:

Backstory: I picked up Umberto Eco’s “On the Shoulders of Giants” book by chance while walking my children through the library. A terrific read. The first chapter is an essay which (paraphrasing) talks about how each new generation stands on the shoulders of previous generations (giants) to look forward and build the future.

What came to mind immediately was my love/hate relationship with cryptocurrencies. I was first told about Bitcoin in 2011, while working as an investment analyst where I’d be on business TV channels up to 5 times a day talking about markets.

I then saw Bitcoin do its thing in 2017, all the while, telling people to stay away from it. I spent some time understanding blockchain technology, but I never really took the time to think and understand Bitcoin as an investment.

So I decided to dedicate time in mid December on Bitcoin and DeFi (decentralised finance). On Bitcoin, I’m basically converted for two main reasons:

  1. Government issued currencies are on the brink of collapse, bond yields are a ridiculous levels and the only way Central Banks get out of this deflationary Covid mess is by printing more money; which means

  2. Rare assets will rise relative to currency. The two I love most are real estate (because its rare and puts money in my pocket each month) and Bitcoin because of the limited 21 million coin supply and the network benefits due to its price rise. Bitcoin gets less risky the more the price goes up (sounds dumb, but think about the network benefits).

Anyways, I hope you like this podcast episode which talks in more detail and shares an insightful interview I came across during the break.

I’ll be posting all future episodes and show notes on this publication (peteresho.substack.com), so make sure you subscribe to get each update in your inbox.

Please note: This is my personal experience for educational purposes only. Don’t take this as advice, do your own research, work with reputable companies and double check everything before you do anything. Err on the side of caution, as with everything else.