Charles Mendlowicz in the podcast Os Associados. Playback/Youtube.In a podcast, YouTuber 'Sincere Economist' said that it was crazy not to have bitcoin in the wallet, considering the potential of this cryptocurrency. On the program Os Associados, by Bruno and Malu Perini, economist Charles Mendlowicz and businessman and miner Rudá Pellini were invited to talk about Bitcoin. During the conversation, everyone raised strong arguments for a possible greater appreciation of the BTC.
good store of value
The behavior of institutional investors is changing with regard to bitcoin. Before Paul Tudor Jones, Michael Saylor, Ricardo Salinas and Elon Musk, for example, few billionaires paid attention to BTC. Therefore, Mendlowicz, the “Sincere Economist”, as he is known on Youtube, explains that the reserve of value thesis depends on trust.
“If I believe Bitcoin is a store of value, you believe it and Bruno believes it, then it is. But you know what happens? The 3 of us here believed, then it was more or less, when some billionaires start to believe, then it becomes a store of value a little bigger.”
So the currency went from $5,000 to $50,000 because a lot of people started to believe it's a store of value, he concluded. On the usability difficulties of cryptocurrency, podcast host Malu Perini commented that gold is not seen either. as an exchange currency on a day-to-day basis. “If you take the industrial use of gold, its price should be much lower.”, added Bruno Perini. In addition to the fact that gold has uses such as jewelry and medals, the price of gold is also supported by its subjective value. The precious metal's scarcity, durability and liquidity on the market help it to be a good reserve currency. Bitcoin's case is similar to gold, in addition to its blockchain technology serving to maintain decentralized and immutable records, digital currency is limited, durable and liquid throughout the world.
“Anyone who doesn't have a bitcoin is crazy, huh?” said Charles.
Charles says Bitcoin can turn a store of value into a self-fulfilling prophecy, but he's not alone in that opinion. In the early days of Bitcoin, creator Satoshi Nakamoto commented on a forum: “It makes sense to just accumulate some [bitcoins] if it works out. If many people think the same way, it becomes a self-fulfilling prophecy.” Bruno Perini further explains that money is the only fiction that everyone believes in, no matter what their ideology. “So the more people believe in bitcoin, it becomes a self-fulfilling prophecy. It will be money if people believe it can be used as money.”
Rudá Pellini, writer of the book “The Future of Money,” added that bitcoiners may be dead wrong and Bitcoin fails, but the risk premium pays off.
“For the person who wants to start today, he first invests time to learn. How much does your time cost? Take the weekend and look at Bruno's videos, look at Charles' videos, read my book, I don't know…[…] Understood a little, decide to buy. How much will you buy? You're the most conservative guy in the world, [let's assume] 90% of your money is in savings. Buy 2% of your equity.”
If we're all wrong and bitcoin dies in 5 years, says Pellini, you'll lose 2% of your equity. If your rent has been readjusted, in 5 years you will lose more than that 2%, he explained.
“The risk premium is very good […] Today we are talking about [an estimate of] 180 to 200 million crypto users. The equivalent of this is the internet in 1998. The internet in 1998 had 190 million users. In 1999 it had between 210 and 220 million. In 2000 it had 300 million. In 2001 it had 400 million. In 2003 the internet hit 1 billion users.[…] The Bitcoin adoption curve is very similar to the internet curve, from an exponential point of view. So the trend, if we are going to pass on this parallel, is that this is repeated. Maybe not, maybe we're wrong, okay. But the point is, if in 2.5% of users we've made it this far…”
Responding, Charles says that, despite not making investment recommendations, he's been saying the same thing for three years: “it's insanity not to have anything crypto.” Watch the full video below: See too:England's oldest bank sells for £1: Barings Bank collapses Bitcoin price drops nearly 10% and drops cryptocurrencies, what happened? Coinbase is threatened by US CVM