Fivesting

Fighting your way through the complex world of finance and investing, building wealth and achieving financial freedom.


Bitcoin: Digital Gold or Just Hype? A Beginner’s Perspective on a Complex Asset

Let me start by saying: I’m not a tech expert. I don’t fully understand how blockchain works, and I’m far from a crypto enthusiast. But like many people, I’ve been watching Bitcoin from the sidelines for years — seeing its wild price swings, hearing about it on the news, and wondering if there’s something more to it than hype.

From my limited understanding, there’s one key fact that stands out to me: only a limited number of Bitcoins can ever exist — 21 million, to be exact. This makes it fundamentally different from traditional money, which governments can print in unlimited amounts. That alone makes me curious.

Bitcoin as Digital Gold

The way I see it, Bitcoin is a lot like gold. Not in a literal sense — you can’t touch it, hold it, or make jewelry out of it — but in how people use it: as a store of value.

Gold doesn’t really have “intrinsic” value either. Yes, it’s used in electronics and jewelry, but its market value mostly comes from the belief that it’s valuable. It’s been used for centuries as a way to preserve wealth, especially in times of uncertainty.

Bitcoin takes this concept into the digital age. It’s scarce (there will never be more than 21 million), it’s decentralized (no single authority controls it), and it’s global (you can send it to anyone, anywhere, without needing a bank). If gold is physical money, Bitcoin might just be digital money for the internet age.

Why the Price Keeps Rising

Bitcoin has been around since 2009. And despite plenty of crashes and controversies, it keeps bouncing back — often reaching new all-time highs. Why is that?

One reason could be inflation. When governments print more money to stimulate the economy (something we’ve seen a lot of in recent years), the value of that money can go down. In contrast, Bitcoin can’t be “printed.” It’s designed to be scarce — like digital gold.

So as people lose faith in traditional currencies, some start turning to Bitcoin as a way to protect their purchasing power. That doesn’t mean the price will always go up — it’s still very volatile — but the idea is that over time, Bitcoin could reflect the real value of money more accurately than fiat currencies.

Should You Invest?

Personally, I’m still on the fence. I’m not ready to invest just yet — not because I don’t see the potential, but because I want to understand it better. That’s what I’d recommend to anyone curious about Bitcoin: do your own research. Don’t just follow the headlines or the hype. Learn the basics, understand the risks, and make informed decisions.

Bitcoin might not be for everyone, but the ideas behind it — scarcity, decentralization, transparency — are worth paying attention to. Whether it becomes the digital gold of the future or just a speculative asset, it’s definitely a sign that our financial system is changing.


Final Thoughts

You don’t have to be a tech expert to appreciate what Bitcoin represents. At its core, it’s a response to a world where money is constantly being devalued and financial systems are controlled by a few. It’s an experiment in creating a new kind of money — one that’s open, limited, and independent.

Is that a fad? Or is it the future? Only time will tell. But it’s certainly worth looking into.



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About Me

Welcome to my finance blog! I’m delighted to have the opportunity to share my knowledge and passion for finance, investing, and achieving financial freedom with you. Let me introduce myself.

My journey in the world of finance began when I arrived in Australia at the age of 18. I pursued my Bachelor of Finance at Deakin University, followed by a Master of Professional Accounting at Monash University. Seeking to enhance my expertise, I also completed a Diploma of Financial Planning and I am now pursuing my CPA studies. Throughout my academic journey, I developed a deep fascination for finance and investing.

I commenced my professional career at Commonwealth Bank, where I had the privilege of working in their financial planning department. During my six years with the bank, I gained invaluable experience and insights into providing comprehensive financial advice to clients. This role enabled me to deepen my understanding of wealth management and solidify my commitment to assisting individuals and their families in achieving their financial goals.

Building upon my experience, I have since transitioned into the role of a Wealth Strategist. As a Wealth Strategist, I provide unbiased advice to high-net-worth individuals and their families, utilizing my expertise in financial planning, investment strategies, accounting and wealth preservation.

Alongside my professional pursuits, I am an avid investor in shares, particularly through index funds and ETFs, as well as a property investor. These personal experiences have allowed me to explore various avenues for wealth creation and further sharpen my understanding of the financial landscape.

Beyond my professional and investment endeavors, I find great solace in reading about Buddhism philosophy and practicing meditation during my free time. These practices have instilled in me a sense of mindfulness, balance, and a holistic approach to life.

Through this blog, I aim to share my knowledge, insights, and practical tips to empower you on your own financial journey. Whether you are starting your wealth-building journey or seeking to optimize your financial strategies, my goal is to provide valuable information and guidance to help you achieve financial freedom and live a meaningful life.

Thank you for joining me on this exciting path toward financial empowerment. Together, let’s navigate the world of finance, unlock opportunities, and create the future we envision.

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