Three Reasons Why People Are “Investing” in Bitcoin

Adoption, perceived equivalence and incentives

Two and half weeks down, one more week to go for our hypothetical SEC employee. Time is flying by! The draft investor alert is due on Monday, June 26. 

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This week’s research has left you a bit dejected. A valuation guru says you can’t invest in Bitcoin; yet, one of the top business schools is teaching people the Fundamental Token Value (FTV) Methodology. A legendary investing duo secured their spots in financial history, but a superstar financial historian disagrees with them completely. The banker who leads the biggest bank is the person we trust with our personal finances, yet he and a top personal finance expert do not see eye to eye. 

Then, there is the SEC, which finds itself in the middle of all of this. 

“What have I gotten myself into?” It is becoming clear to you that finance theory alone won’t be enough to resolve this. If it did, literally the top finance people in the country would not disagree on something so fundamental. If Bitcoin, and crypto in general has become this polarizing, one needs to take a holistic view, thinking about history, logic, sociology and maybe even philosophy. 

“What really is the narrative here?” you ask yourself. I know what is happening, but why is this happening? “If I had only three words (or phrases) to explain all of this, what would I choose?”

You close your eyes and let your mind go freely from one topic to another. You put the work in, it’s all there. Now it’s time to sort it out.

After a meditation-like session that only lasts a few minutes, but feels like a few hours, you’ve got your list: 

Adoption, perceived equivalence and incentives.