Don’t Believe the Obits for Bitcoin – WSJ

It may seem paradoxical to invest in a “predictable” money that loses 70% of its value, but early investors believe that in the long run the predictability of supply will be more important than demand-driven booms and busts. Bitcoin ownership is highly centralized in the hands of individuals who seldom move their coins. If you weathered the 2011 crash from $30 to $2 or the 2018 plummet from $19,000 to $5,000, this latest crash won’t shatter your belief in this project.

As a financial investment, bitcoin is highly speculative, more like venture capital than foreign exchange. If you have no beliefs about monetary theory, you might find these drops extremely unsettling. But strong beliefs are what allow people to ignore the market’s short-term signals and profit when the collective wisdom turns out in the long run to be wrong.

Source: Don’t Believe the Obits for Bitcoin – WSJ