There's an old philosophy in traditional investing that asks if a company will be around in 100 years. That kind of ultra-long-term "buy and hold" strategy is frequently associated with Warren Buffett. That is, acquiring and diamond-handing the stock of companies that can survive changing consumer preferences, technological disruptions, and economic cycles. It seems like a strange thing to think about but you can test your conviction in bitcoin, or any other cryptocurrency for that matter, by asking yourself "will _______ still exist in 100 years?"
In order to answer this thought experiment, one must examine all angles. Is cryptocurrency investing enduring? Can it last from generation to generation? These questions are difficult to answer, as we are yet to see any evidence of major intergenerational transfer of digital assets. That's not to say that there's never been such an act. Certain platforms are even gearing up and providing services for those who seek a store of value for future generations:
- Coinbase Custody Trust Company offers institutional-grade insured storage, often used for trust and estate planning
- BitGo uses regulated custodian multi-sig wallets, used in inheritance scenarios
- Fidelity Digital Assets provide institutional-grade bitcoin custody
- Gemini Custody has high security storage for its clients
In short, these providers all allow for the secure management of digital assets after death. These services mitigate the risk of total loss of cryptocurrencies, compared to self-custody. But anyone who knows really knows the space knows the rule of "not your keys, not your crypto."
Because the space is just under 20 years old, there is still much to be unfolded. Government regulators all over the world are taking different stances on digital assets; some being very favorable toward the evolving space, some wanting tight controls (so that taxes can be collected), and some kicking the can down the road because they just don't know what to do or how to handle its uses.
I would say this: there will be a litany of shitcoins that will not endure the test of time. There are already thousands of altcoins with market caps less than $1 million. I think it's safe to say that HarryPotterObamaSonic10Inu2.0 will not exist in 100 years.
All that being said, it's difficult for anything to last a century. Can bitcoin provide the essential, long-term store of value for generations to come? One thing is for sure: BTC is only as strong as the network that powers it. The node operators, miners, and community remains strong and resilient, even in its bear market moments. It always bounces back. The memes are stronger than ever. Do these indicators guarantee anything? No. Can I actually answer the question posed by the title of this blog post? No. Will I continue to stack sats? Yes.
Warren Buffett got almost everything correct, with regards to "buy and hold." Except the spelling of HODL :)
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