84 sats \ 5 replies \ @0xbitcoiner 21 Mar \ on: Reflections from the Nakamoto Simulator bitcoin
This is too much for my brain to handle right now :) But I have a question: why is the current estimate so different from the actual value?
The number of people that truely understand Bitcoin, I mean like really, really understand it is still very very tiny.
And tbh, it's not even correct to say number of people. It's really the amount of wealth. When some orange pilled family in El Salvador allocates thier entire life savings that barely moves the needle compared to a rich billionaire, sovereign nation or some wealth fund allocating 1%
That's not to say everyone needs to fully understand it to see the upside. If you think about it most people on the planet don't really manage their own investments. They leave those decisions to financial advisors and retirement funds.
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In this context, we'd say that global capital management attaches almost zero probability to Bitcoin overtaking these assets as a store of value.
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It's because most people don't think Bitcoin will emerge as money (or at least that it's not likely to). That leads to a lower valuation.
The fact that Bitcoin is appreciating so rapidly, though, indicates that it's been undervalued.