If Bitcoin continues to succeed and move towards becoming the dominant global medium, it will change the way people approach investing. Why?

So much of the investing strategy today is built around hedging against the currency, which is constantly falling in value.

We’ve seen assets like real estate, equities and gold rise in dollar terms, but are these assets really rising in value or is the currency falling in value?

It depends, some assets have risen in value due to their supply and demand dynamics. Some assets are either pacing with inflation or have dropped in value despite being priced higher in dollar terms.

But what happens if we have a currency that maintains its value? What happens when the price of goods and services continually fall against the currency due to it’s scarcity?

Investors are more incentivized to stay in the currency. There is more hesitation to invest elsewhere unless the investor is highly convicted that their rate of return will outperform that of the currency.

For this reason Bitcoin will most likely demonetize other assets. If it succeeds it will change the whole incentive structure of investing… and I would argue that it is already happening right now.

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