I'm not sure why this is being downvoted. It seems spot on to me. People argue that Bitcoin is a great investment because it's going to go up, up, up! And people argue that it's a good store of value. But they can't both be true.

Reward and risk are strongly related. Nobody should know that better than startup people.

Isn't inflation strongly negative? In the link I posted above, Fred Wilson exhibits behavior typical of deflationary times: people hoard the currency.

That's a strong disadvantage vs nation-state currencies, which have clear inflation targets (generally in the 0-2% range) and the ability to hit them. It may be great for speculation, but it's terrible for a medium of exchange. For that, you want the value to be constant or very slightly decreasing.

And I don't think that's fixable. If the Bitcoin supply is limited but those tokens are used in a world of continuous economic growth, then Bitcoin will always be deflationary.

Bitcoin is NOT infinitely divisible. Each Bitcoin is divisible into 10^8. There were reasons to choose this number and isn't arbitrary [1].

[1] https://bitcoin.stackexchange.com/questions/31933/why-is-bit...

Honestly, and this is coming from a Bitcoin bear, it will probably generate outsized returns in comparison to the S&P500 over the next 2 to 4 years. If it truly is a bubble then it will have a long way to run. The market cap at the moment is tiny, but probably too high to disregard now, and if institutional money starts buying in, it can probably easily go 10-20-30x again.

Don't forget it's still relatively hard for average folk to purchase crypto. But once you have acceptable ETFs and funds that you can purchase at a click of a button through your brokerage account -- a lot of people (and pension funds!) will probably allocate 1-2% of their portfolio to crypto. That is 1-2% of $300tn or so, or 30 to 60 times the amount of money in the space today (in terms of market cap).

If you think this bubble will run for a while, then I also think it's not unreasonable to assume you can multiple your initial investment by 10x by investing in either Bitcoin or Ethereum. But that's my opinion (and this is obviously not investment advice).

Whether it'll be around in 40+ years, I don't dare make that bet. But no one is saying you can't move money around to the better investment opportunity at a specific time.

How has the SP500 compared to BC since its inception in 2009?

Having your life savings in BC is just as stupid as having no cryptocurrency at all.