Hedge vs. what? The collapse of the entire world financial system and its replacement by .... bitcoin?

To be serious: obviously bitcoin can be used as in any investment strategy, including "conservative" ones. You seem to be arguing that a bitcoin position must be part of one, which is kinda insane.

Hedge vs. loss of value in major world fiat currencies. I think this is actually an important problem, and Bitcoin is a nice alternative to gold.

I think you're being rude.

I am referring to the collapse of financial systems, but not necessarily the replacement by bitcoin. Maybe precious metals, heirloom seeds, or guns?

Why buy chips when you can own the Casino (Coinbase)?

I see it the other way around. For Coinbase to succeed, Bitcoin necessarily needs to succeed. If Bitcoin succeeds the price of Bitcoin will increase by many orders of magnitude.

Right now I'd put Bitcoin's odds of success on par with an early stage startup.

The analogy was in reference to pg's investment in Coinbase while holding no Bitcoins themselves.

If Bitcoin succeeds, would you rather have owned the coins... or the banks and exchanges that constantly take a percentage of the flow?

I'm saying it's quite possible the coins themselves would be a better investment at this point.

Casino chips aren't going to significantly increase in value. If Bitcoin succeeds then Bitcoins will. If Bitcoin doesn't succeed, then neither will the "banks".

But building a decent and trusted infrastructure of "banks" will improve Bitcoin's chances of success. Just holding a given quantity of coins on your laptop will not.

Oh I agree completely. If you have a significant amount of Bitcoin you should do everything you can to make Bitcoin a sucess.