Bitcoin for Dummies

Bitcoin is really only worth what somebody else values it at. The first time you heard about Bitcoin, maybe, let's say, it was worth 10 cents or something like that or a dollar back in 2011 ... At the time, you could easily dismiss it because, well, there were very few other people who would actually pay that dollar for a bitcoin ... Now, all of a sudden, today, with the price, coming close to $20,000 as we speak, it's harder to go ahead and say that the market is wrong, that the value of Bitcoin is just inaccurate, that it's gonna go to zero. It's been 11 years now.

The people I know who made the real money in Bitcoin, they've all done one thing in common: They bought and they held. That's it ... What do you do after you buy Bitcoin? Go to sleep for like 5 years.

I think a year from now [at the end of 2021] I think it [Bitcoin] is probably worth north of $50,000, possibly way more than that. I think, if you go out for let's call it four years from now, I think that a price somewhere between a half-million dollars and a million dollars is probably not unreasonable.

I do often tell people who are interested in Bitcoin to go ahead and take a de minimis amount, take the amount of money that they would be comfortable spending in a weekend in Vegas or even just simply a bar tab for one night at the bar, take that and buy Bitcoin.

That's probably the simplest way to describe Bitcoin to the average person is that it's digital scarcity. It's the very first invention of digital scarcity, and it actually is the most scarce thing on the planet.

Probably something like around 25% of all the bitcoins that will ever exist—something in the range of about 3 or 4 million bitcoins —will never be able to be spent, most likely, either due to known losses or to the fact that they just haven't moved since 2009-2010 when they were mined in the first place.