I think it's important to ride a high quality expensive bike as well as a $500 bike to see the difference for yourself. It definitely comes down to how much you're actually going to use it. When I was a teenager my best friend lived next door and was a semi pro mountain biker. He always had two of everything (mountain climbing belts, kayaks, bikes, etc) and so I always got to ride his backup.
What I remember about good bikes was how light they were (huuuge difference) which lets you sort of put the bike where you want it to go much better. Using bike shoes that attach to the pedals made a massive difference too, because you can get power on your upstroke. Totally different experience and worth it imo. Gears were the other thing, and I think the most expensive. If you get a set of great gears and derailleurs, it really makes a world of difference. Smooth, fast, powerful..
The only other thing I'd say is really necessary is a wicker basket and rainbow streamers. Must haves.
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