Bitcoin has emerged as one of the most compelling investment narratives of recent years. Over the past two months alone, its price has surged over 80%, briefly approaching $60,000. This momentum has prompted a significant shift among traditional investors who once dismissed it—figures like Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, are now reconsidering their stance.
Yet skepticism remains. U.S. Treasury Secretary Janet Yellen has criticized Bitcoin as an inefficient and unstable transaction method. Volatility is real—prices recently dropped by as much as $10,000 in a short span.
Despite these concerns, a growing number of investors see long-term value in Bitcoin. In this article, we explore three distinct but converging perspectives—from institutional finance, technical research, and grassroots trading—on why Bitcoin continues to attract serious attention.
From Doubt to 80% Allocation: Bitcoin Isn’t Money—It’s a Digital Collectible
As a vice president at a major state-backed private equity firm with seven years of experience in primary and secondary market investing, my financial training initially made me skeptical of Bitcoin. I first heard about it in 2012, but back then, exchanges were immature and security was questionable—so I stayed away.
By 2014–2015, when Bitcoin traded around $5,000–$6,000 RMB (~$700–$900), I viewed it as pure speculation. It wasn’t until 2016, when a college classmate became legal director at Bitmain, that I began diving into mining hardware and blockchain mechanics.
In early 2020, another friend involved in mining invited me to help raise funds. That’s when I started taking it seriously. Today, Bitcoin represents 70–80% of my non-real estate net worth.
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Initially, I rejected the idea of Bitcoin as currency—my finance background told me that deflationary assets don’t function well as mediums of exchange. Instead, I now see Bitcoin as a digital collectible, similar to rare art or vintage cars.
Consider this: in early 2020, Bitcoin’s market cap was smaller than Kweichow Moutai, a Chinese liquor brand known primarily within China. Yet Bitcoin has global recognition and growing adoption from both retail and institutional investors. That disparity suggested undervaluation.
Another turning point was storing Bitcoin in a cold wallet. For the first time, I experienced true ownership—no bank, government, or intermediary could seize it. As investor Li Xiaolai once said: “Bitcoin technically enforces the principle that private property is sacred and inviolable.”
Market behavior also reinforced my confidence. After each dip, Bitcoin rebounded steadily—later revealed to be driven by institutional buying from firms like Grayscale. With increasing mainstream acceptance and the approval of Bitcoin ETFs, I continued accumulating up to $48,000 per coin.
I hold with full awareness of risk. I’ve leveraged heavily—using year-end bonuses, consumer loans, and cash installments to fund further investments, including two mining rigs purchased at peak prices. Repayment will take over a year. While few in my circle invest in crypto, and domestic brokerage reports remain superficial, I believe we’re still in the early innings of institutional adoption.
With capital increasingly unable to flow into real estate in China, part of that liquidity will likely shift toward digital assets. I expect Bitcoin’s volatility to decrease over time—but I’m prepared for a potential 50% drawdown.
2 Million Yuan In: Bitcoin as a Gauge of Fiat Debasement
Based overseas with 17 years in IT and five years focused on blockchain research, my journey began in 2016 through car enthusiast and alumni groups where Bitcoin was often labeled a scam. That changed in mid-2017 when a Dutch colleague at Merck presented a detailed PowerPoint on Bitcoin’s technology and economic implications.
I enrolled in Princeton University’s online course Bitcoin and Cryptocurrency Technologies, which deepened my understanding of its cryptographic foundations and macroeconomic significance. Since then, I’ve become a committed bull.
I made my first purchase on September 14, 2017—just after China banned domestic exchanges—at around $3,000. Over time, I invested approximately **2 million yuan (~$300K)**. By December, after hitting nearly $19,800, I sold out near $13,800 during the rebound, locking in a 15% gain.
Historically, Bitcoin follows a four-year cycle tied to its halving events: 2010–2013, 2014–2017, 2018–2021. The current cycle (2022–2025) has seen broader recognition from individuals, corporations, and even central banks. Through dollar-cost averaging, I’ve deployed another 1 million yuan at an average cost of $9,000. Most principal has been recovered; only profits remain invested.
Common misconceptions persist:
- Myth: "A small group holds most Bitcoin."
Reality: Addresses holding over 1,000 BTC control only about 18% of circulating supply—and concentration has decreased since 2017. - Myth: "Mining consumes excessive energy."
Reality: Per unit of market value, Bitcoin uses 90% less energy than gold mining. Compared to VISA’s transaction volume, Bitcoin is roughly 60% more energy-efficient for equivalent throughput. - Myth: "Bitcoin is illegal globally."
Reality: It's legally tradable and holdable in over 90% of countries, including the U.S., Japan, EU nations, and the UK—with tax reporting required in many jurisdictions. - Myth: "Quantum computers can break Bitcoin."
Reality: Quantum computing excels in specific algorithms but cannot efficiently perform brute-force attacks on ECDSA private keys. - Myth: "Bitcoin has no production cost."
Reality: Mining evolved from CPUs to ASICs; today’s break-even cost ranges between $20,000–$40,000 per BTC, depending on electricity and hardware.
Bitcoin was designed as “a peer-to-peer electronic cash system”—but its valuation follows principles akin to gold: driven by game theory, scarcity, and consensus. Its price reflects not utility alone, but the degree of fiat currency debasement and demand for neutral store-of-value assets beyond borders or political systems.
From 20K to 2M: Bitcoin as the Ultimate Speculative Asset
Fresh out of university in 2017 with an electronics background, I entered crypto purely for speculation—like many early adopters. Ethereum’s price exploded from ¥50 to ¥2,000 in six months—a 40x return. A forum post about GPU mining caught my eye: projected payback in three months, with resale value for hardware if mining failed.
I borrowed money and started with ¥20,000 (~$3,000). Within a year, I turned it into ¥2 million (~$300K). From September 2017 to January 2018, arbitrage ("cross-exchange trading") grew my holdings to 18 BTC (worth ~¥1.8M). Then during June–July 2018, I capitalized on early yield farming opportunities with FCoin, adding another 20+ BTC equivalent—totaling around ¥2M by mid-2018.
At that point, I felt invincible—dreaming of hitting ¥5M soon. I planned to hold everything except withdrawing ¥500K for family pressure to buy property back home. That partial exit saved me.
Overconfidence led me into futures trading with 10x–20x leverage. Within six months, I lost over 20 BTC—nearly everything—leaving just ¥50K and some ETH lent to friends. For a week, I couldn’t get out of bed.
A turning point came on March 12, 2020—“Black Thursday”—when prices crashed 50% in a day. I shorted the market and made a small profit. When the bull run resumed past $10,000 in 2021, I re-entered carefully.
Today, I view Bitcoin as the perfect speculative vehicle:
- Fully digital—low storage and transfer costs
- Deflationary supply—enables price appreciation
- Decentralized—resistant to regulatory interference
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My strategy now prioritizes discipline: never more than 2–3x leverage, cash out 50% profits incrementally, and reinvest after 20% drawdowns. I haven’t worked a traditional job since—I can’t imagine returning to that lifestyle after experiencing such financial freedom.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin really safe from government seizure?
A: When stored securely in cold wallets with strong private key management, Bitcoin is highly resistant to confiscation—unlike bank accounts or physical assets subject to legal seizure.
Q: Can Bitcoin replace gold as a store of value?
A: Many investors view Bitcoin as “digital gold” due to its scarcity (capped at 21 million) and portability. While volatility remains higher than gold, its global accessibility gives it unique advantages.
Q: How does halving affect Bitcoin’s price?
A: Approximately every four years, the block reward miners receive is cut in half—reducing new supply. Historically, this has preceded major bull runs due to supply shock amid rising demand.
Q: Should I invest in Bitcoin with leverage?
A: Leverage amplifies both gains and losses. Given Bitcoin’s volatility, it’s generally advised only for experienced traders with strict risk controls—and never with funds you can’t afford to lose.
Q: Is now too late to invest in Bitcoin?
A: While early adopters saw exponential returns, institutional adoption, ETF approvals, and macroeconomic trends suggest significant growth potential remains—even in later cycles.
Bitcoin is no longer just a niche experiment. Whether seen as a digital collectible, a hedge against inflation, or a speculative opportunity, its role in modern finance is undeniable. As global trust in centralized systems wavers, decentralized alternatives gain traction.
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