Bitcoin: Not A Store Of Value But A Creator Of It, And Perhaps Not A Bubble After All


  • There has never been anything quite like a Bitcoin.
  • Microsoft has appreciated by over 100,000%, Berkshire Hathaway is up by an impressive 1,700,000% but Bitcoin is up by a staggering 500,000,000% since its infamous "Pizza Transaction".
  • No asset in history has appreciated so rapidly. Therefore, Bitcoin is different, thus we can expect it to behave differently, and this does not necessarily mean that it's a bubble.
  • People are right when they say Bitcoin is not a store of value, at this stage of Bitcoin's development process Bitcoin is still the creator of value.
  • Here is a revolutionary thought that's not discussed very often. Who said that Bitcoin had to be in a bubble, what if it's not in one, and never will be?


Bitcoin: Not A Store Of Value But A Creator Of It Instead, And Why Does It Have To Be In A Bubble?

It’s been a difficult several weeks for Bitcoin (COIN). The coveted digital asset has fallen by nearly 50% in the last 5 weeks, erasing roughly $140 billion of its market value in the process. Many people may consider such staggering losses as the beginning of the end for Bitcoin, a Bitcoin bear market, the final prick in the “Bitcoin Bubble.” However, the truth is that we are likely still very far from the real Bitcoin bubble, and what we are witnessing now is a healthy correction process that is about to present Bitcoin believers with a tremendous buying opportunity.

Bitcoin 1-Year Chart

Bitcoin: Not Your Father’s Berkshire Hathaway Stock

Berkshire Hathaway (BRK-A) is often looked up at as one of the most successful companies in corporate American history. In fact, if we take its estimated “IPO” price in 1964 of roughly $19, we can see that Berkshire’s share price grew by an astounding 1,705,000% to a current price of about $324,000. If we compare that to Microsoft’s (MSFT) split adjusted IPO price of roughly $0.09 in 1986, the stock has gained about 102,000%, as its stock has climbed to $92 through the years.

Impressively, if you’d invested $1,000 in MSFT in 1986 you would have over a million dollars today. Even more impressively, if you had invested $1,000 in Berkshire in 1964 you would have a whopping $17 million today. However, if you had gotten into Bitcoin when Laszlo Hanyecz made his now infamous two pizza purchase using 10,000 BTCs your $1000 investment would have shot up by 500,000,000% and would be worth a mind blowing $5 billion today. To be

To receive real time updates, and get more information about this idea as well as other topics we discuss visit our Albright Investment Group trading community. Join us and receive access to exclusive content, trade triggers, trading strategies, price action alerts, and price targets. The value adding features are available to members of our community and are not discussed in public articles.

This article was written by

Victor Dergunov profile picture
The #1 Service For Diversified Portfolio Profits

Hi, I'm Victor! It all goes back to looking at stock quotes in the old Wall St. Journal when I was a kid. What do these numbers mean, I thought? Fortunately, my uncle was a successful commodities trader on the NYMEX, and I got him to teach me how to invest. I bought my first actual stock in a company when I was 20, and the rest, as they say, is history. Over the years, some of my top investments include Apple, Tesla, Amazon, Netflix, Facebook, Google, Microsoft, Nike, JPMorgan, Bitcoin, and others.

Disclosure: I am/we are long BITCOIN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (278)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.