My dad finally started The Bitcoin Standard…

For reference, my dad is very smart. He has been in investment banking for about 30 years now and done incredibly well for himself. I have tried to explain the idea of bitcoin to him for some while now, but he just wouldn’t listen. After pestering him non stop he finally has begun to read The Bitcoin Standard. He just texted me this:

Hey there. I’ve read and listened to enough to now say I get it as a currency (eventually) and obviously there is tremendous genius around the development of it. But you should take a look at Bitcoin vs any other hard (his term) currency on the planet as regards beta/store of value. Simply ridiculous to compare vs dollar/euro/pound/yen/franc. Now could it get there and ultimately be superior, perhaps. I’ll keep reading and listening to how that might occur. I find it interesting that there is not a sentence in the Bible (The Bitcoin Standard) about Bitcoin as an investment. There is not an utterance on The Bitcoin Standard podcast about Bitcoin as an investment. The thrust of all of this is around the genius of creating a decentralized currency and to be clear, it is indisputably genius. Crazy mathematical equations, unbelievable amounts of computer power, entire grids of electrical supply, etc. Stock/flow ratio that mimics gold. Limited supply, 21 million coins and it stops and it isn’t like Yap where someone can sail across and mine limestone, I get it. But why won’t Saifedean Ammous, the genius Austrian economist call Bitcoin an investment? I would love to hear yours and other enthusiasts explanations of how it is an investment that is defensible with logic. The only investment argument I can conceive of is that someday Bitcoin will be as sturdy as those five currencies mentioned above. So until then it is an investment? But there in lies the paradox – as long as there is severe speculation in Bitcoin, it can not serve as a hard (his term) currency because it simply cannot sustain its value (see Nov 2021 – Nov 2022..). Play that out – if it is an investment (think of the poor sap that bought a pizza with Bitcoin in the beginning), why would it be a currency? Why would the infrastructure be built to be a currency when you are an idiot to spend it if it goes up 14X in a year like it did in 2017? And if it is a currency, the why would it be an investment? I have never heard of any investor investing in the dollar/euro/pound/yen/franc – they hold those for liquidity when the don’t want to invest in stocks/bonds/real estate, etc. Again, my simple take after a few hours of a podcast and seven chapters of the Bible is that this is a true conundrum, a real-life catch 22. How do we get to a world where Bitcoin is able to store value like the dollar/euro/pound/yen/franc? None of those currencies have ever dropped 75% in a calendar year and any volatility of any of those currencies was all correlated together with some kind of world inflation or world depression. Tell me, why does a farmer in the US, UK, Europe, Japan, or Switzerland want to work all year and save all his labor in the form of a currency that drops 75% in a year (a farmer in Venezuela, Columbia, etc, different, may as well gamble on Bitcoin). Sure..in the long term this all works out and Bitcoin joins those five hard currencies above..think there was an economist that once said in the long run..we are all dead. I just don’t see it yet how we get to the long term. But I’ll grant you this – you’ve made me consider it and I’ll think about it.”

I’m formulating a response as of now. Would love any counterarguments.

submitted by /u/Jeweler-Loud
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