Bitcoin: Tread Cautiously

In a recent episode of Panic with Friends, Howard Lindzon sat down with Vinny Lingham to talk “What’s Next for Crypto Following the Epic Crash.” Their insights are worth heeding. One thing people get wrong is there is no absolute advice in crypto that’s correct.

Vinny is skeptical about the scalability of bitcoin in the long-term, but he’d be happy to be proven wrong. The store of value narrative is in vogue now. It used to be digital currency. Just remember, narrative changes over time.

Elon’s bashing of bitcoin probably means he doesn’t buy this current narrative. The whole energy efficiency and ESG thing going on right now comes into play. Vinny acknowledges he still has concerns, but that doesn’t mean you shouldn’t own bitcoin. If you going to have a portfolio, you’ve got to have bitcoin in it. We don’t know where the world’s going.

Does it make sense to be 100 percent in bitcoin? Absolutely not! While bitcoin is the first coin, it’s foolish to believe it’ll be the only coin. Clearly it isn’t, and there are lots of other coins that have different use cases and utility. The narrative hasn’t played out to where we have bitcoin at a million dollars. People didn’t believe in a 50 percent pullback. They said, “Oh the institutions are coming in and you’re never going to see a big drawdown in bitcoin again.”

It was all bullish mindset. The store of value narrative isn’t right. While it may become one in the future, a solid store of value asset can’t lose 50 percent of its value in a week…