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Writer's pictureIsaac Bennett

The Ultimate Risk Asset

Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster and stronger behind a wall of encrypted energy.


- Michael Saylor, CEO of MicroStrategy


Imagine if we told you 10 years ago that you'd consider buying little bits of code, proselytized to you by someone who suggested these bits were serving the goddess of wisdom...whomever that is. Now, imagine that you'd be considering trading $62,000 of your little green bits of code for just one of these other bits of code.


Today's Coinbase IPO has us ruminating on the evolution of crypto, starting with the grandest of them all, bitcoin.


Bitcoin is of course the first use case of blockchain, the elegant technology first ideated in the 1980's, and brought to life by Satoshi Nakamoto in 2009. Blockchain is a beautiful invention, stacking several different pieces of technology into one, forming a world-changing idea. We believe we're in the nascent stages of blockchain technology, with an innumerable series of use-cases in various stages of creation. We're even working on an idea at Abundant that utilizes this new technology.


We like and own bitcoin, to a certain extent. Goodness, though, is it ever getting out of control. The ultimate store of value? Replacing gold? Inflation protection? Cyber hornets? The goddess of wisdom? This doesn't sound like ancient wisdom to us, this sounds like new age speculative nonsense.


How can something be considered the ultimate store of value when it hasn't even reached its teenage years yet? Can something 12 years old truly replace gold as the ultimate (and arguably only) form of hard money? Are we ok placing all of our faith in a man-made idea?


Questions are better than answers, and bitcoin creates a lot of them. We love the idea, we just think the rhetoric is out of control. It feels much more like a risk asset to us than a store of wealth. Its chart has the shape and trajectory of speculative tech stocks. The majority of people buying bitcoin seem to be risk takers, not value hoarders. There is nothing at all wrong with that, it is just another data point.


We raise another question: is Bitcoin a reaction to central banks printing and debauching the currency, with people rushing into it as a store of value? Or is it a result of these actions, with folks clamoring to pile into the latest hip idea? We have no idea.


Technology is interesting...for awhile. It then gets replaced by something better, faster and more useful. We've yet to see something invented in modern times where this wasn't true. At the very least, give this idea consideration before placing huge amounts of capital in such an inexperienced asset.


If the goddess of wisdom did exist, she'd tell you to focus on generosity, not on stacking sats.



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