Summary
TLDR: The article discusses Pascal’s wager, which argues that the potential reward of believing in God outweighs the risk of not believing. It applies this concept to Bitcoin as an investment, stating that owning Bitcoin has an asymmetric upside with limited downside, making it a wise investment for most portfolios. The article suggests that even a small allocation to Bitcoin can provide protection against currency debasement and inflation, comparing it to insurance. It also emphasizes the importance of diversifying financial plans by including Bitcoin.
Key Points
1. Binary outcomes instigate extreme results, making the game theory of money a winner-take-all game.
2. Bitcoin offers an asymmetric upside, with potential rewards outweighing potential risks, making it a wise investment for most portfolios.
3. A small allocation to bitcoin can provide insurance-like qualities, offering protection against extreme currency debasement and inflation.