Bitcoin vs the Aussie Experience
Market narratives for the average Aussie
I'm a big Bitcoin fan (if you couldn't tell) because I firmly believe that - believe it or not - the internet is a thing, so internet money isn't that far of a leap.
Sure, there is plenty of silly stuff (my FARTCOIN holding is up ~2.5x since my last write up, why bother ever punting on horses?) but the fundamentals of the internet, interest, finance, and reflexivity remain strong.
Bitcoin vs the Aussie Experience
Let's put things in perspective though, yeah bitcoin is up big but what about the average Aussie? What upside have they gotten in the last 3 years?
Media narratives (AFR front page yada yada) are generally reflective of a version of the immediate truth which isn't always necessarily reflective of the whole picture. Time to widen the picture for a moment:
It is not unrealistic to think that nearly every Australian has a holding in the Big-4 banks. Be it passive ETFs, active funds, super funds, SMSFs, etc.
Coal stocks, WBC & CBA have been a better investment than Bitcoin over the last 3 years! – the average Aussie wins again!
Social licence really matters – our market structure punishes those that communicate the benefits of their position to society poorly. Woolies suffering. CBA have no issue despite printing $$$.
ANZ where art thou?
Although the headlines might have you think you've missed out on great returns by not holding Bitcoin, in reality you've probably held assets that have beaten it over the last 3 years. I wonder how the table looks like in 3 years' time.
On the balance of probabilities, I doubt banks generate 20%+ per annum over the next 3 years. Happy for someone to build me the bridge there. But I can build a bridge for BTC (or Aussie small/micro caps for that matter) generating those kinds of returns, albeit volatile.