Note: Written as Bitcoin returns to the $100,000 milestone
As the first blog of the year, I want to talk about Bitcoin. With the influx of information in recent times, combined with my personal life experiences and reflections, I believe I now have a deeper understanding of this phenomenon.
In my previous blog, “Let’s Talk About Bitcoin Again,” I analyzed Bitcoin from four aspects and refuted Warren Buffett’s viewpoints. At that time, I felt I was already close to grasping the truth. Now, I dare say I have fully understood the value and significance of Bitcoin. Simplicity is the ultimate sophistication, and if I were to summarize Bitcoin’s essence in one sentence, it would be this:
Bitcoin’s essence lies in being a “game.” This game was initiated by its creator, driven by dissatisfaction with governments. Early players in this game included hackers, speculators, merchants, and even heirs of influential families. Regardless of their motives for joining, one commonality stands out: they were all young. This shared trait may seem amusing, but it’s the most crucial point. I once said that human society fundamentally operates as a Ponzi scheme, where individuals maximize personal gain by exploiting newcomers. As capital intertwines with governance, the younger generation finds itself powerless against the overwhelming, entrenched structures.
So, what’s the best way for young people to avoid exploitation? Build a new Ponzi scheme and encourage successive waves of younger participants to join. Within this new system, there are fewer historical burdens and less exploitation. Einstein famously said that compound interest is the eighth wonder of the world. This principle underpins the dynastic dreams of capitalists, who wish to perpetuate their wealth across generations. Yet, history shows us how rare it is for family fortunes to endure for centuries. To me, Bitcoin is a democratic revolution, a movement for equality. Every revolution in human history has fundamentally sought greater equality—this is the truth I’ve come to understand.
The youth’s recognition of Bitcoin’s value is akin to Newton and Leibniz independently discovering calculus within the same era. Their shared conviction feels like a harmonious connection among like-minded souls. Imagine a group of people, strangers to each other, yet united by the same ideals, working silently in parallel. Their numbers grow, and some even dedicate their lives to advocating for it, regardless of their motivations. This resonance is as profound as the connection between kindred spirits.
As more young people opt out of buying homes and stocks, instead entering the cryptocurrency market, the old guard panics. Buffett called Bitcoin “rat poison squared.” Munger declared his hatred for Bitcoin’s success. These elder statesmen, enriched through so-called “value investing,” have spent too long at the apex of the system, bound to the interests of old money. They fear their decline and resent Bitcoin’s rise because this new game is stealing their business while threatening to upend the table entirely. They understand Bitcoin but cannot abandon their positions. To invest in Bitcoin would be to destroy the credibility of their own legacy—value investing—which would mean surrendering to their adversary. They are no longer the innocent dreamers of their youth.
The cycle of “heroes becoming villains” is a tale as old as time. The world’s true nature is survival of the fittest. Democracy, liberty, equality—all these are but the trappings of civilization. When resources grow scarce, survival, not ideology, becomes paramount. Struggle is eternal, and it is through struggle that we find renewal and possibility.
As for Bitcoin’s future, it’s inevitable—it will break through $1,000,000 per coin. The game’s current state is clear: young people are driving Bitcoin’s price higher, delivering annualized returns far exceeding the Nasdaq 100 Index. And the youth’s greatest advantage? Time. Time is the most equitable force in the world. When time aligns with the young, old money stands powerless. Regardless of the outcome, old money will fade, while the youth will create a new world, defining their own values. The relics of the past are meaningless to them. They don’t need Buffett’s approval—they might even enjoy his disdain for Bitcoin as they watch him exit this world. Time is the most violent revolution.
We live in a fragmented, parallel universe of realities, where understanding is both the rarest and most precious thing.
I love this quote: “We cannot possess both youth and the understanding of youth simultaneously.” Yet, being able to reflect on different stages of life at different times is still a remarkable experience.
Finally, to all young people, I want to say: Never lose hope. Time and hope are the most beautiful things in this world, and they are inseparable friends. With time, you have hope. Even if one day I grow old and look back on this blog, I’ll be able to say: I, too, was once young.