Bitcoin: A Speculative Gamble, Not a Currency

Bitcoin, the original cryptocurrency, has captivated investors and speculators alike since its humble beginnings in 2009. If you had the foresight to acquire a handful of bitcoins when they were first traded, you'd be sitting on an astronomical fortune today. The New Liberty Standard Exchange recorded the first exchange of Bitcoin for U.S. dollars, when users on the BitcoinTalk forum traded 5,050 bitcoins for $5.02 via PayPal. That transaction set the first price at approximately $0.00099 per bitcoin.

Today, those 5,050 bitcoins would be worth over $484 million at Bitcoin’s current price of $95,967.88. If only we had all been so forward thinking. But that ship has sailed.

The Illusion of Value

Bitcoin is often lauded as a potential replacement for traditional fiat currencies, but in reality, this is an impossibility. The fundamental problem is liquidity. With only 18 to 19 million bitcoins in circulation—a number that will never exceed 21 million—there simply isn’t enough Bitcoin to function as a true global currency.

Let's put this into perspective: If every bitcoin were evenly distributed among the U.S. population of 331 million, each person would receive just 57,000 satoshis—worth approximately $54 per year at today’s price. Hardly a viable economic system.

Moreover, the idea of spending Bitcoin is fundamentally flawed. If you truly believe Bitcoin’s price will continue to rise, why would you ever use it to buy something? The rational investor would hoard, not spend—further undermining its practicality as a medium of exchange.

Artificially Supported Prices

Unlike traditional currencies, which are backed by governments and economies, Bitcoin's value is entirely speculative. The largest holders—commonly known as “whales”—have the power to manipulate the market through coordinated buying and selling. These players create artificial demand, keeping prices high and luring in new investors.

Even the U.S. government is getting involved. President Donald Trump has proposed using taxpayer funds to create a "Strategic Bitcoin Reserve", which would inject billions of taxpayers’ money into the market to prop up Bitcoin’s value. This reckless policy would force American taxpayers to subsidize an already volatile asset, adding another layer of artificial price support.

The Underlying Problem: No Intrinsic Value

Unlike stocks, which represent ownership in a company, or gold, which has physical utility, Bitcoin has no intrinsic value. Its worth is entirely based on speculation and the belief that someone will pay more for it in the future.

Yes, Bitcoin's price can increase—but it can just as easily collapse. And unlike traditional assets, Bitcoin’s floor price is zero.

The reality is that Bitcoin is not a currency. It’s not digital gold. It’s not a hedge against inflation. It’s a speculative instrument propped up by market manipulation and wishful thinking.

Bill White Says…

"Why would I sell something today that I purchased yesterday if I believe its value will increase tomorrow?"