1/ Should you buy #bitcoin ?

Imagine you wanted to store your wealth in copper. You start buying copper and start storing it. If you are a billionaire, let's say you buy 10% of copper supply annually. The demand for copper for industrial uses will go up.

2/ Copper manufacturers would start investing in the production of more copper because the price has gone up due to hoarding. This will increase the supply of copper to a point where it matches the industrial demand.

3/ Once the industrial demand is met, the price of copper will come back to its original price because the supply has gone up. Once the supply has gone up, the billionaire's copper wealth would start going down.

4/ If the billionaire bought the copper at $5000 per tonne, the price of the copper would come back to $5,000 per tonne because of increased supply. And if he sells it on the market to prevent his losses, it would increase supply even more and drive down the price more.

5/ All the people who thought copper was a good store of value would get REKT. This happens because the supply of copper is not limited. Hence no good or commodity that has consumption value should be used as a store of value. Such hoarding is not helpful to the consumers.

6/ Anyone who thinks that one can store their money in cash is making the same mistake. Except that it is even easier than copper for central banks to create new money out of thin air. Anything that is not limited in supply CANNOT be a store of value.

7/ If you want to store your hard-earned money in something that can give you purchasing power in the future, then you need to buy something that is ONLY used as a medium of exchange, doesn't have any consumption value, and doesn't increase in supply.

8/ If central banks have a hard limit to the supply of their digital currencies mathematically, I would have no problems buying them up like there is no tomorrow. But the problem is that CBDCs are not yet available and the best alternative is right now is #Bitcoin

9/ Bitcoin is a great store of value because it can retain its purchasing power across time, space and scale. Even if the demand for Bitcoin goes up and the price goes up, there is no one to make more bitcoins. No one to steal away your hard-earned monetary energy.

10/ That's why I trust Bitcoin and cryptocurrencies. A form of money that cannot be inflated in supply will only increase in price as the demand for it increases. There is no way the price is going down in the long run.

11/ If you want to invest in Bitcoin, invest for the long term. New technology will always have its ups and downs in the beginning. Gold is 1000s of years old. Bitcoin is just 12 years old. Imagine what would happen when bitcoin is 50 or 100 years old.

Inspired by the book: The Bitcoin Standard by Saifedean Ammous