what are you invested in right now for the next 5 years?
I want to know specifically what is your pick or what are your picks that will beat Bitcoin for the next 5-10 years
I agree with John (and what follows isn't "aimed" at anyone in particular...)
The only thing that *MIGHT* beat what I predict BTC will do over the next 5-10 years is some of my trading models, but that's not an apples-to-applesfair comparison... and it's a HUGE "might." In terms of buy and hold, BTC is likely to trounce all other options in terms of return/risk (I put the "/risk" because I fullheartedly agree with John's earlier post regarding other cryptos that might have a better return but will have been speculative winners in hindsight.)
I think some people get hung up on the dramatic swings in BTC. I was like that in the early days. (eg ~2011 - 2015) I just didn't think I could stomach it, even with a small position. For me, personally, using derivatives to dampen the drawdowns was a game changer that allowed me to participate. Now I also use derivatives to strategically amplify my returns beyond mere buy and hold, since I have built some statistical models to anticipate the likelihood of BTC going up or down over certain periods of time.
I also think some people just can't get their heads around the use cases or "value added", which in a funny way is a privileged position to be in. I keep thinking these days how if I were a Russian citizen living in Russia, I would be considering myself very lucky that I kept a certain percentage of my total assets in BTC and not the rouble or even foreign bank accounts. When I wanted to pay a graphic designer in Africa for some work she did for me, I tried Western Union (WU) first because that's what we usually do. We had a couple issues, so I asked her if she would accept BTC and we did it that way. It was actually easier and the total fees were lower (after subtracting unfavourable currency exchange rates buried in the WU order.)
Then there are all the emotions around it and the fact it takes a *little* more work to set up than a regular trading account, although that's changing. Frustration that it's gone up so much from 10 years ago may hold some people back from participating today.
There are also some risks in BTC and other cryptocurrencies that are different from other forms of investment... but these can be managed and, as I said before, I would never bet the farm on any single trade or investment, ever. I diversify across asset classes, strategies, time frames, etc. This is just one more thing that has virtually no correlation with anything else I'm doing and that has a lot of potential upside.
The supply of BTC is constrained programmatically. Demand ebbs and flows, but continues to grow overall as the price goes up and people hear about other people making profits... and so the increasing overall demand causes the price to continue to go up. It's a feedback loop and nobody can ramp up supply to soak up excess demand, unlike many commodities, for example. If and when it stops is anyone's guess, but in the meantime, buy protective puts to dampen and limit losses and stick to a certain "acceptable" percentage of your overall portfolio in the space overall to limit catastrophic losses, should those ever occur. My personal opinion is BTC will continue to cycle higher and higher at least until after I'm dead.
