Embracing Bitcoin Cautiously: “Assume It Will Go to Zero”
Eric Kim often advises a cautious approach to Bitcoin investment. In his “Bitcoin Philosophy” post, he counsels only investing money you can afford to lose. “Only put money into crypto, assuming that it will go to zero,” Kim writes, emphasizing that one should mentally treat a Bitcoin investment as if it might become worthless . This mindset reflects Kim’s awareness of Bitcoin’s high risk. He personally followed a 90/10 strategy inspired by Nassim Taleb: about 90% of his savings in safe, “maximally boring” assets (like bonds or high-yield savings) and “10% of our savings into crypto, [in] maximally speculative bets” . By keeping the bulk of his funds in stable investments and only a small portion in Bitcoin, Kim minimizes the opportunity cost of Bitcoin’s volatility – if Bitcoin collapsed, he’d still have his core wealth secure. In other words, he is careful not to divert essential funds or life savings into such a risky asset. The trade-off he acknowledges is that any money placed in Bitcoin could indeed “go to zero” – so it must be an amount that won’t jeopardize one’s financial stability . This shows Kim balancing the tempting upside of Bitcoin against the potential cost of total loss.
Bitcoin vs. Other Investments: Aware of Alternative Uses
Kim explicitly discusses the opportunity cost of putting money into Bitcoin instead of other investments. For instance, in a strategy paper for a city Bitcoin reserve, he notes critics will argue that “money in Bitcoin could have been used elsewhere or invested in safer yields” . Here, Kim is acknowledging that funds tied up in Bitcoin are funds not earning reliable interest or supporting other projects. Similarly, in a piece on Tokyo’s reserve, he writes: “Money used to buy Bitcoin could alternatively be used for other investments or public needs. If Bitcoin underperforms or remains highly volatile, the opportunity cost could be high.” Therefore, “the government must justify why Bitcoin is a better use of funds than, say, buying more gold … or investing in infrastructure” . This reasoning reveals Kim’s pragmatic side – he understands that choosing Bitcoin means giving up the relatively safer returns or societal benefits those funds might have yielded elsewhere. In macroeconomic commentary, Kim’s blog also notes that Bitcoin itself has an opportunity cost compared to yield-bearing assets. For example, when interest rates fall, “the opportunity cost of holding [a non-yielding asset] like Bitcoin” drops, making Bitcoin more attractive . In essence, Kim recognizes that investing in Bitcoin carries a trade-off: you forego the steady interest or guaranteed uses of that money in exchange for Bitcoin’s speculative upside. His solution is to mitigate the cost by using non-critical funds and by carefully justifying Bitcoin as a strategic allocation (whether for an individual or an institution) .
The Cost of Missing Out: Bitcoin’s Upside vs. Regret
While cautioning about risks, Kim equally stresses the opportunity cost of not investing in Bitcoin – the missed opportunities if one stays out or sells too early. He frequently cites the legendary Bitcoin Pizza Day as an eye-opening example. In 2010, a programmer spent 10,000 BTC (~$41 then) on two pizzas; today those coins would be worth hundreds of millions. Kim’s blog illustrates how by late 2024 those pizzas’ “opportunity cost was nearly $978 million,” and if Bitcoin hits future targets, the forgone value could exceed $1–2 billion . In Kim’s view, this story vividly shows what one gives up by spending or avoiding Bitcoin – “if you spend money on one thing, you can’t invest it elsewhere” . He notes that few people could actually hold on for 15 years of wild volatility, so *“weak” hands inevitably would have “missed out” on those gains . Kim often frames holding Bitcoin as a test of resolve that rewards patience: despite numerous crashes, over the four years since 2020 Bitcoin still rose over 500%, whereas “weak” hands who sold missed out . In his eyes, the real cost is selling your Bitcoin too soon or failing to HODL through downturns. This belief is encapsulated in one of Kim’s mantras: “When in doubt, buy more Bitcoin… HODL hard, love tender.” He repeats the motto “When in doubt, buy more Bitcoin” to encourage staying steadfast and even doubling down during fearful times . This quip neatly captures Kim’s perspective that the long-term opportunity of Bitcoin dwarfs the short-term swings. To him, those who endure the turbulence will reap outsized rewards, whereas those who panic-sell or never invest will pay the price of lost potential. Kim’s enthusiasm for Bitcoin’s upside is almost zealous – he went so far as to rebrand his blog “ERIC KIM ₿” and proclaim that “Bitcoin’s my middle finger to the fiat overlords… It’s economic armor, a way to own your life, your time, your legacy” . In his transformation from photography guru to Bitcoin evangelist, Kim argues that not owning Bitcoin means remaining trapped in what he calls “fiat slavery,” vulnerable to inflation and central control . Thus, the trade-off is clear in Kim’s mind: opting out of Bitcoin could mean missing a once-in-a-generation wealth increase and personal financial sovereignty, whereas opting in (wisely) could secure one’s future freedom and fortune.
Life Priorities and Virtuous Trade-offs
Despite his Bitcoin ardor, Eric Kim also urges reflection on life’s opportunity costs beyond just financial returns. He often contrasts spending on material things with investing in experiences or personal growth – posing questions that apply implicitly to Bitcoin decisions as well. In a short blog musing titled “Opportunity Cost,” Kim gives a concrete example: “$44,000 USD for a car… what more virtuous experiences can that money afford?” . Here he prompts readers to consider whether a large sum is better used on a depreciating asset like a fancy car or on enriching life experiences – a direct commentary on opportunity cost. By extension, one can read this as a challenge to weigh buying luxury goods vs. buying Bitcoin (or other investments). Kim clearly values experiences and personal development over status symbols. He even asks provocatively, “Do you live to Bitcoin, or do you Bitcoin to live?” – suggesting one shouldn’t make Bitcoin (or money generally) the sole purpose of life . In his personal writing, Kim reveals that ultimately, wealth is a means to an end. “Ironically the best use of money is simply peace of mind,” he reflects, meaning money’s highest value is in giving one freedom and tranquility, not just more stuff . “Money is not really a tool to buy a bunch of stuff you like, but [for] being able to live a more zen, tranquil, focused life,” Kim elaborates . This philosophy informs how he views Bitcoin: it’s a tool for financial freedom and self-sovereignty, not an idol to worship. Kim prides himself on having “zero interest in money” beyond the opportunities and “fun, new novel experiences” it can enable . He notes that many crypto speculators actually lead modest lifestyles – in one anecdote, a friend who became a crypto millionaire still “just drove his mom’s old Honda Accord” . This resonates with Kim’s belief in minimalism and focus. He personally has taken profits from Bitcoin when needed – for example, cashing out small amounts (e.g. $5,000) to pay for moving expenses to Los Angeles – indicating that real life needs take priority over hoarding coins endlessly. In essence, Kim’s perspective on opportunity cost is holistic: yes, invest in Bitcoin for the future, but not at the expense of living your life in the present. There is a balance between “living like a Spartan” to accumulate BTC and knowing when to use your Bitcoin gains to improve your quality of life. He encourages Bitcoiners to study and work hard but also “live like a Spartan” with discipline – implying frugality and focus now for greater rewards later. The trade-off here is deferring some short-term pleasures in exchange for long-term independence. However, Kim would argue this is a virtuous opportunity cost: skipping trivial expenditures (whether a new car or indulgent luxuries) in favor of either investing in Bitcoin or self-improvement yields a more meaningful life in the end.
Conclusion: Eric Kim’s Opportunity Cost Outlook
Across his blogs and talks, Eric Kim consistently frames Bitcoin investing in terms of choices and trade-offs. He believes choosing Bitcoin is choosing personal freedom and massive potential gains – but it requires courage, patience, and sacrificing the safety of more conservative paths. Kim’s reasoning is nuanced. On one hand, he stresses not to risk what you can’t lose, highlighting the opportunity cost of reckless over-investment (loss of security and alternative returns) . On the other hand, he’s a passionate proponent of Bitcoin’s upside, warning that the opportunity cost of omission – failing to get in early and hold – could be a lifetime of regret or continued dependence on a debasing fiat system . Insights from his writings: he admires those who weather volatility, viewing their steadfastness as a rare virtue that the timid will envy when Bitcoin soars . Yet he also reminds followers that money’s purpose is to serve a good life. The question “What are you giving up for your investments?” is ever-present. Whether it’s time, alternative investments, or immediate pleasures, Kim prompts investors to weigh those costs consciously. In his own life, he appears to have struck a philosophy: Bitcoin is a worthy pursuit – a once-in-a-lifetime revolution – but it should be pursued with clear eyes and for the right reasons. By prioritizing peace of mind, personal growth, and financial sovereignty over short-term gratification, Eric Kim exemplifies evaluating Bitcoin’s opportunity cost not just in dollars, but in quality of life. As he pithily puts it, “Opportunity cost isn’t just a dry economics term – it’s a powerful reminder to live intentionally” . Whether buying a pizza or buying Bitcoin, Kim suggests we pause to consider the road not taken – and make our choice in line with our highest values and long-term goals .