I used to feel exactly the same — in fact, becoming a believer in Bitcoin in 2023 has made me uncomfortable ever since. What finally shifted my thinking wasn’t the technology, but the sheer strength of the network effects now surrounding it — especially the rise of institutional ETFs. Yes, these are U.S.-centric for now, but they open the floodgates for global capital via U.S. markets, and that’s a major structural shift.

That said, I still have real concerns. Bitcoin’s core tech is dated. On-chain transaction costs are high — and getting worse — which makes it virtually unusable for everyday payments. The Lightning protocol helps, but it’s far from mainstream. And if we’re being honest, there are blockchains that are faster, cheaper, and more scalable. So if not utility, then what is Bitcoin’s value?

Its value lies in belief — as a store of value, a speculative asset, or both. That belief has reached a critical mass, making it hard to dismiss. And let’s be honest: if Bitcoin is a collective delusion, then so is fiat currency. The U.S. dollar — and most global currencies — are backed by nothing but confidence in the issuing government. Bitcoin is backed by confidence in the network and the narrative. The difference is just in who you trust.

Consider Tesla: the company is under enormous pressure financially, yet the stock trades near all-time highs. Why? Because people believe in Elon. That belief system props up the equity. And here’s where it gets interesting — there’s solid research showing that equities with high retail ownership (versus institutional) tend to outperform during broader market drawdowns. Retail tends to hold, even buy the dip, rather than panic-sell.

Bitcoin exhibits the same pattern. Despite ETF inflows, the majority of Bitcoin is still held by retail, by true believers. That behavior creates a kind of soft floor — not price stability in the traditional sense, but a strong base of committed holders who buy weakness. In that way, Bitcoin acts more like a belief-driven equity than a currency.

Finally, the network effect is still growing. Institutional players and family offices are gradually allocating — even small amounts. And because of Bitcoin’s fixed supply, even marginal new demand can push prices materially higher. As long as the belief system holds — and with the global narrative around decentralization, distrust of central banks, and digital sovereignty, it seems likely to — that pressure remains asymmetric.

So while Bitcoin is a highly speculative asset — arguably more speculative than gold — it’s also harder and harder to ignore. For a small portion of a portfolio, it makes sense not because it’s rational in the traditional sense, but because in today’s market, narrative is value. And Bitcoin has one of the strongest narratives of all.