Bitcoin: The Ultimate Opportunity Cost

Whether you’ve just started your journey down the rabbit hole or you’re already telling billionaires to “have fun staying poor,” by now, you’ve learned about the functions and characteristics of money.

Why would people use bitcoin to exchange value at scale when it is serving as the best store of value right now? In the future, when Bitcoin’s volatility calms down and global adoption is above 80 percent, people won’t feel like they’re giving up generational wealth when they use bitcoin as a medium of exchange, and then Bitcoin the network will shine.

When you go down this wormhole, you stop thinking about bitcoin as an investment, which implies you’re trying to exit at some point after squeezing out more money than you put in.

Today, money managers use the risk-free rate of treasury bills to calculate opportunity cost of financial decisions.

Finally, you have an opportunity cost that can’t ever be verified or agreed upon.

In my mind, most purchases won’t outperform Bitcoin, so if I’m buying something, it better give me a large amount of enjoyment, and if I’m ever selling Bitcoin, it better be in exchange for large amounts of time.

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