Crypto isn’t gambling. For many like me, it’s hope.
Bitcoin has taken over the internet.
Log into Twitter and you’ll see Bitcoin trending every second day. I want to offer an alternative to the typical narrative. Why are young people like me so fascinated by Bitcoin?
- It’s one way to escape the current financial system.
- (Less known). Bitcoin is how many young people believe they can one day afford a home.
During my parent’s boomer era, the average person believed they would own a home. In the millennial generation, owning a home has become an outrageous dream. The average salary buys you a lot less of a house than it used to. Shelter is the biggest expense of your life.
All you have to do is look at the rising cost of homes as a millennial and it’s pretty frightening. If you’re not a trust fund baby and have no inheritance coming your way (like me), then owning a home is a far away dream.
I live in a noisy student apartment which backs onto a train line that keeps me awake at night — all this so I can be next to a stupid physical office and work for the man in a suit.
Bitcoin changes that.
Bitcoin isn’t a bubble. Here’s why.
It’s easy to slap a label like bubble on an asset. It takes no effort and no intelligence.
“The price is too high. It’s a bubble you idiot.” This is what social media discussion can look like.
I want to shatter the bubble talk to pieces. Investment icon Raoul Pal said the price rise of Bitcoin is due to network effects, not a bubble. It’s the same reason Facebook, Amazon, Apple, Netflix and Google appear to have unrealistic stock prices compared to the usual P/E ratio way of measuring a stock’s value.
When a technology has strong network effects its price goes exponential. This is normal. This is what squashes the bubble talk from the traditional finance world. Traditional finance doesn’t understand technology, so they call things bubbles to cover up the gap in their understanding.
Web 3.0 and Bitcoin have strong network effects.
Prices have and will go parabolic with further adoption.
Catching up with runaway inflation
You now know the main reason why the Bitcoin price goes up. There’s one other major reason.
Buying Bitcoin is how you keep up financially.
Trillions of dollars are being printed out of thin air by the U.S. Lumber prices are soaring. The cost of basics is going up. Therefore, young people are buying Bitcoin — not to get rich but to keep up with rising prices. Home prices are one of those assets that is running away from the average person.
If I didn’t buy Bitcoin then there is no way I’d ever be able to afford to buy a home. That’s the harsh truth.
Bitcoin was an opportunity that came along to solve a problem I didn’t know I had until a giant pandemic turned the financial world on its head, made interest rates go to zero, and made the stock market go up during record unemployment, while interest earned on bank accounts went negative in some countries and to zero in others.
Bitcoin is a silent protest. Bitcoin is also a way to stay in the owning-a-home game. Because buying stocks or other asset classes may not be enough when the government is artificially keeping markets high to avoid a long-overdue crash we’ve been expecting since the 2008 crisis.
A stock market crash has the potential to reveal the lies of the current financial system. The 2%inflation tripe can become exposed. The large number of risky assets, like the same ones that caused the 2008 crash, could be revealed.
The guy who called the 2008 housing crash, that became a Hollywood movie, and made him a huge amount of money off the devastation, Michael Burry, tried to warn of the current risks. The U.S. SEC stepped in and silenced him. His Twitter chirping has gone silent. Those in the know, know.
I can’t predict what will happen.
All I know is there has to be a better way than quietly taxing people through simply creating more dollars out of thin air and pretending inflation is 2% when your supermarket and the house you want to own tells you differently.
Call us dreamers if you will.
Bitcoin has averaged 200% year-on-year growth since its inception.
If I have to buy Bitcoin to try and catch up with runaway price rises of the things I need to live, like a home, then I will. Call us Bitcoiners stupid. Stab Web 3.0 in the chest with your swear words. Hurl abuse at us. Call us stupid.
Without an alternative financial system, the rich who own most of the real estate will keep buying more properties and keep making the rest of us renters for life. Bitcoin is the only way for many young people to beat the rich by adopting a new technology before they do and creating wealth.
The rich buy more real estate than they need. The younger generations buy Bitcoin in an effort to catch up and bring back equality again.
Maybe Bitcoin is a silly dream.
But we’ve gotta try something new, right?
Bitcoin isn’t about getting rich. No, Bitcoin is about catching up again to the rising prices of the things we need to live humbly.
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.
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