On Christians Investing in Bitcoin

Denigrating Bitcoiners

Bitcoin and other cryptocurrencies produce no dividends. They will never provide a place to stay or earned income or even interest.

So why do people invest in crypto? Because they expect the price to rise.

We have a word in finance for an investment like this — a bubble. An asset that never pays a dividend but has a price that keeps rising is a bubble. An investor can believe Bitcoin is a bubble and rationally invest so long as she expects to sell out before the bubble pops. But that isn’t investing; that’s gambling, and it’s a zero-sum game.

Bitcoin is for Saving

…you don’t “buy” money because you intend to hold it forever. The point of holding money is to “sell it” in the future

The value of currency comes from people’s willingness to accept it as a means of payment.

But Bitcoin is a much less robust means of payment than other currencies. While there is a black-market demand for Bitcoin transactions because of anonymity, the current level of payments can’t explain the price. The number of Bitcoin transactions slowed down starting in 2012 and hasn’t increased at all since 2017. But the price has soared since then.

As a currency, Bitcoin is not as good as dollars or any other currency.

All economists agree that a stable price is highly desirable for a currency.

Bitcoin is a Hedge Against Inflation

Christians should be excited to invest in ways that serve the common good, whether by using their retirement funds to align values and investments or by providing funding for a car wash to provide jobs or in any number of other ways. Investing creates and serves.

The US Dollar System is Corrupt

Conclusion

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Jimmy Song

Jimmy Song

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Bitcoin Educator, Developer and Entrepreneur. Book: https://amzn.to/2RSlnTb PGP Fingerprint: C1D7 97BE 7D10 5291 228C D70C FAA6 17E3 2679 E455