The Dividend Cafe Why We Do Not Own Bitcoin (and never will)
Dec 5, 2025
Dive into the world of Bitcoin as the discussion uncovers its notorious volatility. Historical price drops highlight its speculative nature, casting doubt on its potential as a stable currency. The contrast between Bitcoin and productive investments emphasizes a strategy focused on long-term wealth. The fascinating sociological factors behind Bitcoin's allure are explored, along with the implications of government regulation. Ultimately, the verdict is clear: Bitcoin remains a speculative vehicle, not aligned with a productive investment philosophy.
AI Snips
Chapters
Transcript
Episode notes
Volatility Undermines Bitcoin's Value Claim
- Bitcoin's price is highly speculative and shows extreme volatility over short periods.
- That volatility undermines its claim as a stable medium of exchange or store of value.
Repeated Deep Drawdowns Are Material Risk
- Historical drawdowns for Bitcoin include multiple 80–90% collapses in past cycles.
- Those deep crashes highlight timing risk and long-term uncertainty for holders.
Bitcoin Acts Like A High‑Beta Tech Asset
- Since 2020 Bitcoin has behaved like a high-beta risk asset correlated with tech stocks.
- Its movements often mirror NASDAQ and other risk-on asset classes, not a safe haven.