Debunking Bad Reasons Not to Buy Bitcoin
The Misguided Case Against Bitcoin
Bitcoin, the world’s leading cryptocurrency, has sparked endless debates about its value as an investment. Critics often dismiss it as speculative, volatile, or artificially inflated, favoring traditional assets like real estate. Yet, many of these arguments rely on flawed assumptions or outdated reasoning. This article dissects common objections to investing in Bitcoin, revealing why they fall short and why Bitcoin remains a compelling asset for the future.
The Misguided Case Against Bitcoin
A frequent critique of Bitcoin is that it’s not a “true investment” because it doesn’t generate income, unlike assets like rental properties. Critics argue that investments must produce cash flow, while assets like Bitcoin, which rely on price appreciation, are mere speculation. This perspective, however, is rooted in a flawed understanding of what constitutes an investment.
The "No Income, No Investment" Fallacy
The claim that only income-producing assets qualify as investments is a classic example of the "No True Scotsman" fallacy, arbitrarily redefining terms to exclude counterexamples. Consider physical gold, which doesn’t generate income but is widely regarded as an investment due to its store-of-value properties. Similarly, stocks like Amazon, which historically paid no dividends, have delivered massive capital gains, proving that income isn’t a prerequisite for investment status. Bitcoin, with its unprecedented returns, outperforming nearly all asset classes over the past decade, challenges this narrow definition. If you buy a house and don’t rent it out, it’s still an investment if it appreciates. Bitcoin’s value lies in its scarcity, security, and growing adoption, not in generating rent or dividends.
Moreover, real estate’s income potential is often overstated. Rental income is frequently offset by expenses like property taxes, insurance, maintenance, and unexpected costs, think a $50,000 roof replacement on a $300,000 property. Real estate investors tend to highlight gains while downplaying these costs, unlike Bitcoin, which has minimal holding costs beyond secure storage. The idea that real estate is inherently superior because of income ignores the full financial picture.
Bitcoin’s Liquidity vs. Real Estate’s Low Float
Another critique is that Bitcoin’s market cap is artificially inflated by “low float” on exchanges and “fake paper Bitcoins.” This argument misrepresents Bitcoin’s market dynamics. Bitcoin boasts one of the most liquid markets globally, with $46 billion in trading volume over a 24-hour period (as of recent data). Compare this to real estate, where high transaction fees, commissions, and illiquidity make buying and selling costly and slow. Bitcoin’s deep liquidity, available 24/7, contrasts sharply with the cumbersome process of trading property.
The notion of “fake paper Bitcoins”, derivatives or unbacked tokens, inflating Bitcoin’s price is also misguided. If anything, paper Bitcoin increases perceived supply, potentially suppressing prices, not pumping them. Bitcoin’s transparent blockchain ensures that actual BTC in circulation is verifiable, unlike opaque real estate markets where valuations can be manipulated by local conditions or low liquidity.
The Zero-Sum Game Myth
Critics often label Bitcoin a “zero-sum game”, implying that gains for one investor come at another’s expense. This is false. Bitcoin, like stocks or real estate, allows all holders to benefit from price appreciation without impoverishing others. If Bitcoin’s purchasing power rises, all holders gain, just as rising property values benefit all homeowners. Futures markets, where longs and shorts directly offset each other, are zero-sum, but Bitcoin’s spot market is not. Its fixed supply of 21 million coins ensures scarcity, driving value as adoption grows, without requiring losers.
The Lost Coins Misconception
Some argue Bitcoin’s $2.2 trillion market cap is inflated due to lost coins, estimating 3–4 million BTC are inaccessible. At $113,000 per coin (as of early August 2025), this equates to roughly $472 billion, not the exaggerated $800 billion often cited. However, lost coins don’t inflate Bitcoin’s value; they reduce circulating supply, effectively acting as a “donation” to remaining holders by increasing scarcity. The market adjusts, with prices reflecting the available supply. Even if only one Bitcoin remained, its divisibility (down to 0.00000001 BTC, or a satoshi) would allow it to function as a global currency, with its price adjusting to market demand. Speculation about quantum computers recovering lost coins is a future concern, but early Bitcoin addresses vulnerable to such attacks represent a small fraction of the total supply.
Why Bitcoin Stands Out
Bitcoin’s critics often fail to evaluate it on its own terms. Unlike real estate, which demands ongoing maintenance and carries risks like tenant lawsuits or government-mandated upgrades, Bitcoin is a low-maintenance asset. It doesn’t call you at midnight about a flooded basement or require costly repairs. Its decentralized, censorship-resistant network offers unmatched security and portability, making it a superior store of value for those prioritizing personal responsibility.
Bitcoin’s track record speaks for itself. Over the past decade, it has delivered returns that dwarf real estate, stocks, and gold, with a market cap reflecting genuine demand, not artificial inflation. Its fixed supply protects against the devaluation inherent in fiat currencies, while its global accessibility makes it a hedge against economic instability. For investors, Bitcoin offers simplicity and potential, free from the headaches of traditional assets.
Conclusion
The arguments against Bitcoin, its lack of income, alleged low float, zero-sum nature, or lost coins, crumble under scrutiny. They reflect a reluctance to engage with Bitcoin’s unique properties as a decentralized, scarce, and highly liquid asset. While real estate has its merits, it’s not inherently superior, burdened by high costs and illiquidity. Bitcoin’s rise from obscurity to a $2.2 trillion asset proves its value, not as speculation but as a transformative financial tool. For those wary of Bitcoin, the real risk is missing out on its potential. If you’re ready to explore, secure a wallet, hit the exchanges, and see why Bitcoin is more than just a passing trend.