Bitcoin is not like a traditional investment

What is the yield you can expect in your Bitcoin investment? Is there a consistent rate of return? Will it outperform other markets? Better than stock market returns? Gold? Will it beat inflation?

All these questions arise from the traditional mindset trained to evaluate everything as financial returns vis-a-vis dollars or whatever fiat currency the prospective investor holds.

But Bitcoin, by its very nature, cannot promise any of these things. Those who say otherwise are wrong. What are we investing in if it is not any of the above?

What would be called success in terms of your Bitcoin investment? And how do you evaluate whether it is living up to its expectation?

For that, we need to look at its roots, All “Bitcoin” promised by Satoshi and what it is turning out to be. A “Peer-to-Peer electronic cash system”. P2P without going through a financial institution. And “cash system” means you get to own it and gives the bearer the right over it. This is in contrast to current systems where all flow happens through trusted 3rd party institutions that are not necessarily incentivised to protect your interests.

That it has a fixed supply could also be a consideration if you like it to hold its value better than unrestrained supply currencies.

If you need these properties, you can invest in “Bitcoin”. The returns are as above, nothing else. Still, others can engage in speculative activity and prattle about “Profits” and “Returns”. Still, it was never meant as a traditional investment.