Yesterday, I came across an intriguing post on X (formerly Twitter):
"For asset management, simply investing in Bitcoin is enough. There's no need to consider other options."
While this statement seemed somewhat dubious at first, the reality is that over the past few months, Bitcoin has indeed proven to be the optimal choice, at least for this specific timeframe. Granted, there are times when the expansion of the NISA (Nippon Individual Savings Account) makes investing in stocks or mutual funds seem like an attractive option. However, isn't it somewhat puzzling when we realize that the stock market has already reached new heights by the time we become aware of it?
In Japan, when it comes to managing financial assets, "saving" has long been considered the most effective strategy. There has been a general lack of knowledge about alternative methods for handling financial assets. People have traditionally viewed money through the lens of saving and spending, with little consideration for other facets. The idea that keeping money in a bank account with high interest rates could generate returns, or that investing in stocks could yield capital gains, was largely unfamiliar until recently, when this mindset has begun to shift.
While investing in stock indices 20 years ago would have undoubtedly been profitable regardless of timing, the same can be said for Bitcoin. In fact, the rate of return on Bitcoin investments has been overwhelmingly higher. This can be attributed to the expectation that Bitcoin will not only join the ranks of traditional asset classes but eventually surpass them, potentially ascending to the status of an asset class akin to gold.
Without such expectations, it would have been challenging for Bitcoin to achieve its current scale in just a few years. The crucial question now is whether Bitcoin can indeed be recognized as an asset class in the future. Initially, Bitcoin aimed to occupy the seat previously held by gold as an asset class. However, the IT revolution brought about an era where many people primarily transact with electronic data. In this context, Bitcoin has been touted as a potential successor to gold.
This matter requires repeated consideration: Does Bitcoin truly have a promising future? If so, further price increases would not be surprising. However, if Bitcoin is merely a temporary phenomenon, its value could plummet unexpectedly. This assessment is of utmost importance and cannot be taken lightly. Nonetheless, predicting the future trajectory of human society remains uncertain. It is possible that a time may come when the necessity for Bitcoin becomes unclear, potentially triggering a price collapse. While many Bitcoin holders may not consider this possibility, it cannot be entirely dismissed.
Moving forward, I intend to continue exploring whether Bitcoin is indeed an unnecessary investment or the ultimate investment opportunity.
