Nick Szabo  🔑

An example would be a sample technology savy engineer or a bank employee who understands BTC wallets and operational security around securing a bearer asset well-enough to store his own coins, but leaves his coins on a crypto exchange for convenience.

In that case they understand the techniques but not the value proposition. If they don't find the main value-add use case actually valuable why would they think it's a good investment? They are probably just confused, or think they are a good technical investor (gambler).

Correct. Many investors don’t understand Bitcoin’s main value proposition well enough, but find other/additional values attractive such as low correlation to traditional asset classes(portfolio diversification), relatively easy access to the asset, transferability, new tech, etc.

I found that there is a group of investors (mostly also gold bugs) who understand Bitcoin’s value proposition, but are afraid to engage before the legal environment around digital assets solidify. Some of this group is also afraid of technology risk at this time.

This reflects a profound lack of understanding about legal risks and how to reduce them.

A good-enough level of understanding is there (incomplete nevertheless)...yet most people simply don’t have the guts, even if it’s a rational choice, to do something about mitigating those legal risk. It’s a great tragedy of modern societies. It’s driven by fear of authorities.

No. It's a profound misunderstanding. They should stay far away from crypto until they learn what its value propositions and risks actually are.

People dont want freedom, they want safety, unfortunately.