There is no more reason to believe that Bitcoin will stand the test of time than that governments will protect the value of government-created money, although Bitcoin is newer, and we always look at babies with hope.
Interpretation
This quote suggests skepticism regarding the long-term viability of Bitcoin, comparing it to the unpredictable value of government currency.
Paul Singer emphasizes that just as we cannot fully trust governments to maintain the value of their currency, we should not automatically believe that Bitcoin will endure over time. The comparison to babies illustrates the tendency to place hope and optimism in something new, despite the uncertainties that come with it.
In practice
In a debate about cryptocurrency, this quote can be used to point out the uncertainties surrounding Bitcoin's future.
In January we start saving money, getting out of credit card debt, funding our retirement accounts, and we're doing wonderful. Then, every single year like clockwork, starting in November, all of you fall into this trap that says, 'I have to buy this gift... I can't show up at this party and not have something for everybody.
People who want to know how stocks fared on any given day ask, "Where did the Dow close?" I'm more interested in how many stocks went up versus how many went down. These so-called advance/decline numbers paint a more realistic picture.
Gold is a way of going long on fear, and it has been a pretty good way of going long on fear from time to time. But you really have to hope people become more afraid in a year or two years than they are now. And if they become more afraid you make money, if they become less afraid you lose money, but the gold itself doesn’t produce anything.
Investing is forgoing consumption now in order to have the ability to consume more at a later date.
A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?
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