Most people use stocks and real estate as their long-term savings accounts.
I actively made the decision to use #Bitcoin as my long-term savings account.
Let me explain why:
(THREAD 👇)
I actively made the decision to use #Bitcoin as my long-term savings account.
Let me explain why:
(THREAD 👇)
Money is a way for us to store, exchange, and account for value.
When the world uses a form of "money" that can't store value, savers have to rely on "assets" to store value.
Fiat currencies are not money. They are currencies. They're DESIGNED to be a terrible store of value.
When the world uses a form of "money" that can't store value, savers have to rely on "assets" to store value.
Fiat currencies are not money. They are currencies. They're DESIGNED to be a terrible store of value.
The majority of countries in the world use the US Dollar as a reserve asset.
This means they store value in US Dollars.
They do so because almost every other currency has a higher inflation rate than US Dollars.
Their buying power is being drained slower with USD.
This means they store value in US Dollars.
They do so because almost every other currency has a higher inflation rate than US Dollars.
Their buying power is being drained slower with USD.
Some examples:
Since 1995, the Indian Rupee has lost 61% of its buying power in terms of USD
The Turkish Lira has lost 95% since 2006
The Nigerian Naira has lost 91% since 2003.
These are the people who benefit from US Dollars.
Since 1995, the Indian Rupee has lost 61% of its buying power in terms of USD
The Turkish Lira has lost 95% since 2006
The Nigerian Naira has lost 91% since 2003.
These are the people who benefit from US Dollars.
But let's look at what's happening between USD and BTC:
USD has lost 99.3% of their value in terms of BTC.
In the last 5 years: 91.5%
In the last year: 55%
USD has lost 99.3% of their value in terms of BTC.
In the last 5 years: 91.5%
In the last year: 55%
The US Dollar financial system is being revalued in Bitcoin.
Everything will be repriced in BTC, and MUCH lower.
Today, you pay ~9 #BTC for a new home.
12 years ago (this is the data I found) it was something like 60K BTC for a house.
A 99.9% drop in price.
Everything will be repriced in BTC, and MUCH lower.
Today, you pay ~9 #BTC for a new home.
12 years ago (this is the data I found) it was something like 60K BTC for a house.
A 99.9% drop in price.
Your cash flow doesn't matter when the currency you're getting is being devalued at 50%/year in terms of the currency the rest of the world will be saving in.
If people around the world can save in BTC, why would they want USD anymore?
Why would they want to be stolen from?
If people around the world can save in BTC, why would they want USD anymore?
Why would they want to be stolen from?
This is where game theory comes in:
You have to try to figure out where the puck is going.
You have to figure out what people will use to save in the future.
People who bought houses and stocks since 1970s are doing very well financially because the gold/USD link was severed.
You have to try to figure out where the puck is going.
You have to figure out what people will use to save in the future.
People who bought houses and stocks since 1970s are doing very well financially because the gold/USD link was severed.
The entire world can't buy US stocks...
The entire world doesn't have access to prime real estate either...
But everyone with a cell phone and an internet connection can buy BTC.
BTC is an open network that can't be censored and the money it issues can't be inflated.
The entire world doesn't have access to prime real estate either...
But everyone with a cell phone and an internet connection can buy BTC.
BTC is an open network that can't be censored and the money it issues can't be inflated.
When more people understand Bitcoin, they will buy it.
When more people buy Bitcoin, the demand increases.
When demand increases, the price goes up.
We have seen higher highs and higher lows in the USD price for 15 years because there's a supply cap that can't be changed!
When more people buy Bitcoin, the demand increases.
When demand increases, the price goes up.
We have seen higher highs and higher lows in the USD price for 15 years because there's a supply cap that can't be changed!
Bitcoin is a Veblen good - as price rises, so does demand.
I ignored Bitcoin at $1.
Similarly, some very wealthy people will ignore Bitcoin until its $1M.
BTCs price will rise forever in terms of USD, until nobody is left wants to sell at any USD price.
I ignored Bitcoin at $1.
Similarly, some very wealthy people will ignore Bitcoin until its $1M.
BTCs price will rise forever in terms of USD, until nobody is left wants to sell at any USD price.
At this point, the only things that will be exchanged for BTC are goods and labor.
Why trade value for pieces of paper when you can have the hardest asset in the world?
This is why...
Why trade value for pieces of paper when you can have the hardest asset in the world?
This is why...
My short/medium-term (1 year) savings are kept in Canadian Dollars because the dollar, relative to other currencies, is stable.
My long-term (5+ years) savings are in BTC.
For anything between 1-5 years, I will assess the situation as I go.
My long-term (5+ years) savings are in BTC.
For anything between 1-5 years, I will assess the situation as I go.
I am 31. I plan to work for at least another 20 years, if not forever.
My wife is a nurse and she likes what she does. Bitcoin will give her the freedom to do more creative work if she wants to.
My wife is a nurse and she likes what she does. Bitcoin will give her the freedom to do more creative work if she wants to.
I don't want to be forced to exchange my BTC for USD or CAD.
I will do whatever I can to avoid selling my BTC, unless I WANT TO.
This means I will work while I have the ability to do so to avoid selling.
Eventually, I will sell small chunks of BTC to pay for my lifestyle.
I will do whatever I can to avoid selling my BTC, unless I WANT TO.
This means I will work while I have the ability to do so to avoid selling.
Eventually, I will sell small chunks of BTC to pay for my lifestyle.
I think it will be easy to use BTC as collateral in the future.
This will mean I can buy whatever I want WITHOUT selling BTC (like real estate today).
I am designing my life so I can work from ANYWHERE in the world, in any time zone, as long as I have an internet connection.
This will mean I can buy whatever I want WITHOUT selling BTC (like real estate today).
I am designing my life so I can work from ANYWHERE in the world, in any time zone, as long as I have an internet connection.
While I work, if I produce more than I consume, I will buy more BTC, until at some point I earn all my income in BTC and I'm spending BTC regularly.
At that point, my CAD will likely be worthless, or close to it, and ALL of my savings will be in BTC.
At that point, my CAD will likely be worthless, or close to it, and ALL of my savings will be in BTC.
That's it for this post. Thank you so much for reading!
If you want to learn more about Bitcoin, I wrote a massive thread explaining how it works and why it's here to stay.
If you're interested, read it below 👇
If you want to learn more about Bitcoin, I wrote a massive thread explaining how it works and why it's here to stay.
If you're interested, read it below 👇
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