My letter to Jim Rickards - You do not get Bitcoin

In response to your article https://dailyreckoning.com/gold-vs-bitcoin-goldman-sachs-weighs/

Jim, I've read your books....I respect your insights.... but you do not get Bitcoin - at least not the way I get it.

Bitcoin technology has started the evolution of Internet 3.0. A digital world evolving its own economic model on the internet to allow exchange of value peer to peer. Pushing innovation around decentralization, permissionless/censorship resistant, transparency, anonymity and security concepts - beyond simply deploying a distributed database (DLT or Blockchain). If the value of this innovative technology is truly understood, then its price point based in fiat does not really matter in the short term.

Like other bankers, you see Bitcoin as a fraud and a bubble ready to burst anytime - while tech visionaries see possibilities, entrepreneurs and investors see opportunities. Granted there will be volatility, exploitation, disruptions - no great innovation produced less.

Bitcoin has the largest network effect and the most tested of all the cryptocurrencies. Being instinctively accepted by the tech savvy generation - Bitcoin will most likely be around for sometime.

Whether as a commodity, a security or money - people will use Bitcoin as needed based on their economic circumstance with limited government regulatory influence...as being seen around the world today.

Most likely governments will issue their own commodity backed centralized cryptocurrencies, and it may impact Bitcoin price -
but only in the short run. For governments cannot replace the Bitcoin technology nor make it obsolete. As much control they have over the internet, that is as much influence they will have over Bitcoin. Rather than fight a losing battle, governments/central banks will focus on introducing regulations and promoting financial vehicles such that bitcoin (and other cryptocurrencies) transactions can be tracked and taxed.

Gold will most likely play a bigger role within the financial world of governments. Bitcoin will play the role of digital gold in the internet world - a world where assets will be digitized in a virtual economy and where the concept of value will be redefined. So I see Bitcoin and Gold dominating 2 different spheres, with the potential of Bitcoin technology influencing our lives in many more ways than Gold.

Gold will always be a hedge against collapse of governments and central banks or even civilization as we know it, but Bitcoin is an investment in the potential of our innovative evolution into the future...put a price on that.