Why Bitcoin Could Surpass the Value of Everything

Swan Bitcoin
29 Jul 202415:37

Summary

TLDRThe video script explores Bitcoin's potential as the ultimate hedge against inflation, highlighting its fixed supply and unique properties as superior to traditional assets like real estate and gold. Joe Bernett, a respected voice in the Bitcoin community, argues that Bitcoin's scarcity and divisibility make it the perfect asset, predicting a future where its value could surpass all other forms of wealth. The script also discusses the ethical implications of investing in real estate and the societal benefits of a Bitcoin-centric economy.

Takeaways

  • 🌐 Global wealth is vastly larger than the current valuation of Bitcoin, suggesting a potential for Bitcoin's value to increase significantly if a larger portion of wealth is transferred into it.
  • πŸ’‘ Bitcoin's fixed supply and unique properties make it a superior store of value compared to traditional assets like real estate and gold, which can be subject to dilution and counterparty risk.
  • 🏠 The concept of real estate as an investment may be considered unethical as it can restrict access to housing and is subject to market volatility and potential depreciation.
  • πŸ“ˆ Bitcoin's hyper volatility is attributed to its rapid global adoption and the speculative nature of the market, despite its underlying value as a stable store of value.
  • πŸ”‘ Bitcoin's monetary propertiesβ€”scarcity, portability, divisibility, durability, and fungibilityβ€”make it objectively better than other forms of money, according to the script.
  • πŸ“Š The predetermined and unchangeable supply schedule of Bitcoin provides a level of predictability that can contribute to its stability over time.
  • πŸš€ Bitcoin's compound annual growth rate has been significant, indicating a massive growth potential, although this has also contributed to its volatility.
  • πŸ’Ž The script suggests that Bitcoin's value could 'explode' if the global wealth tries to fit into the limited available Bitcoin, highlighting its potential as an investment.
  • πŸ›‘ Bitcoin is presented as a hedge against inflation and financial instability due to its fixed supply and the inability to create more of it, unlike traditional assets.
  • πŸ”„ The script argues that as Bitcoin continues to be adopted, it will redefine the concept of money and capital, and potentially demonetize overleveraged asset classes.
  • 🌱 Investing in Bitcoin is portrayed as a long-term strategy that could offer better returns and preserve purchasing power more effectively than traditional investments.

Q & A

  • What is the current global total wealth and Bitcoin's market value as mentioned in the script?

    -The script states that the global total wealth is 900 trillion, and Bitcoin's market value is currently at 1 trillion.

  • What is the argument made for Bitcoin's potential to significantly increase in value?

    -The argument is that with a global total wealth of 900 trillion trying to fit into the small available market for Bitcoin, which is less than 100 billion, this could cause the price of Bitcoin to 'explode,' potentially making it worth more than all other assets combined.

  • Why are traditional assets like real estate and gold considered 'melting ice cubes' in comparison to Bitcoin?

    -Traditional assets are considered 'melting ice cubes' because their value can decrease over time due to inflation or other factors, unlike Bitcoin, which has a fixed supply and does not experience dilution, making it a more reliable store of value.

  • What is the concept of 'no dilution risk' and 'no counterparty risk' in the context of the perfect asset?

    -The perfect asset would have no dilution risk, meaning it cannot be created in excess, and no counterparty risk, meaning its value does not rely on any government, company, or person. Bitcoin is presented as such an asset in the script.

  • Why is Bitcoin considered to be more volatile currently?

    -Bitcoin is considered more volatile because its global adoption is happening very fast, leading to rapid growth and fluctuations in price as more people recognize its value and invest in it.

  • What are the monetary properties that make Bitcoin a better form of money according to the script?

    -Bitcoin's monetary properties include scarcity, portability, durability, divisibility, and fungibility, which make it a superior form of money compared to traditional assets.

  • What is the significance of Bitcoin's predetermined supply schedule?

    -Bitcoin's supply schedule is algorithmic and predetermined, meaning no single group or person can change it. This predictability can potentially reduce volatility and make it easier to price Bitcoin over time.

  • What is the potential impact of Bitcoin's adoption on the value of real estate and other assets?

    -As Bitcoin continues to be adopted, it could cause the value of real estate and other assets to fall in Bitcoin terms, as these assets may not hold their value as well as Bitcoin does.

  • What is the ethical argument presented against investing in real estate in the script?

    -The script suggests that investing in real estate may be unethical because it can harm society's access to housing by driving up prices and treating homes as investment vehicles rather than consumption items for living.

  • How does the script relate Bitcoin to the concept of the 'Invisible Hand' in free markets?

    -The script relates Bitcoin to the 'Invisible Hand' by suggesting that individuals acting in their own self-interest by adopting Bitcoin can lead to a better outcome for the entire world, as it encourages saving over spending and conservation over consumption.

  • What is the potential long-term impact of Bitcoin on society according to the script?

    -The script suggests that Bitcoin could fundamentally shift financial incentives from spending to saving and from consumption to conservation, potentially leading to a world where assets that should not be monetized are demonetized, and wealth is preserved more effectively.

Outlines

00:00

πŸš€ Bitcoin's Potential as an Inflation Hedge

The first paragraph discusses the potential for Bitcoin's value to skyrocket due to its limited supply and the vast amount of global wealth that could potentially be stored in it. It compares Bitcoin to traditional assets like real estate and gold, which can be infinitely produced, and highlights Bitcoin's fixed supply as a key advantage. The speaker, Joe Bernett, argues that Bitcoin's unique properties make it the ultimate hedge against inflation and financial instability, suggesting that it could redefine the concept of money and capital. The paragraph also touches on the ethical implications of investing in real estate and the potential for Bitcoin to offer better long-term returns.

05:00

🌐 Bitcoin's Adoption and Market Volatility

The second paragraph delves into the rapid global adoption of Bitcoin and the resulting market volatility. It explains that Bitcoin's hyper volatility stems from its exponential growth over the past 13 years, with a compound annual growth rate of around 130-140%. The speaker suggests that as more people recognize Bitcoin's superiority as a store of value, its adoption will continue to increase, leading to significant price fluctuations. The paragraph also discusses the concept of perfect money, which has no dilution risk and no counterparty risk, and argues that Bitcoin embodies these qualities better than any other asset.

10:03

πŸ”’ Safeguarding Bitcoin for Long-Term Savings

The third paragraph emphasizes the importance of securely storing Bitcoin to ensure its value is preserved for future generations. It discusses the use of cold storage and the importance of having a backup plan, such as stamping seed phrases on durable materials like titanium plates. The speaker also mentions the potential societal benefits of transitioning from traditional assets to Bitcoin, including the possibility of a more ethical and efficient allocation of resources. The paragraph concludes with a call to action for individuals to recognize the value of Bitcoin and to consider it as a superior form of money.

15:05

🏠 The Shift from Real Estate to Bitcoin

The fourth paragraph explores the idea that assets like real estate and cars, which are traditionally considered valuable, may depreciate over time when compared to Bitcoin. It suggests that as people realize the superior monetary properties of Bitcoin, there will be a shift away from these traditional assets. The speaker argues that Bitcoin's fixed supply and lack of energy loss make it a superior store of value. The paragraph also touches on the concept of the Invisible Hand in free markets, suggesting that individual actions in self-interest can lead to a better outcome for society as a whole.

Mindmap

Keywords

πŸ’‘Global total wealth

Global total wealth refers to the cumulative value of all assets and resources worldwide. In the video, it's used to contrast with Bitcoin's current market cap, highlighting the potential for Bitcoin's value to 'explode' if a significant portion of this wealth were to be invested in it. The script suggests that with Bitcoin currently valued at 1 trillion of the 900 trillion in global wealth, there is a vast amount of potential growth.

πŸ’‘Bitcoin

Bitcoin is a decentralized digital currency that operates on a peer-to-peer network without the need for intermediaries like banks. The video discusses Bitcoin as an asset with a fixed supply, making it a potential hedge against inflation and an alternative to traditional stores of value like gold and real estate. It's portrayed as the ultimate store of value due to its scarcity and the fact that it can accommodate an infinite amount of wealth.

πŸ’‘Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video positions Bitcoin as a hedge against inflation, suggesting that its fixed supply makes it a more reliable store of value compared to assets that can be printed or created indefinitely, like fiat currency.

πŸ’‘Fixed supply

Fixed supply in the context of Bitcoin refers to the predetermined limit of 21 million coins that will ever exist. This is a key aspect of Bitcoin's design, intended to prevent inflation by ensuring that there will never be more than this amount. The video emphasizes this as a major advantage over assets with potentially unlimited supplies, such as fiat currencies.

πŸ’‘Scarcity

Scarcity is the state of being scarce or not being in sufficient supply. In the video, scarcity is highlighted as a crucial property of Bitcoin that contributes to its value. The script mentions that 94% of all Bitcoin have already been mined, suggesting that the remaining 6% will be increasingly scarce and valuable as adoption grows.

πŸ’‘Volatility

Volatility refers to the degree of variation of a trading price series over time. The video acknowledges Bitcoin's hyper volatility, which is attributed to its rapid global adoption and the speculative nature of the market. However, it also suggests that volatility is a temporary phenomenon that will decrease as Bitcoin becomes more widely accepted and understood.

πŸ’‘Monetary properties

Monetary properties are the characteristics that make something a suitable medium of exchange, store of value, and unit of account. The video argues that Bitcoin possesses superior monetary properties, such as being scarce, portable, durable, divisible, and fungible, making it a better form of money than traditional assets like gold or fiat currencies.

πŸ’‘Counterparty risk

Counterparty risk is the risk that the other party in a financial contract might default. The video contrasts Bitcoin, which has no counterparty risk because it is decentralized and not reliant on any single entity, with traditional assets like stocks and bonds, which may be affected by the actions or failures of the entities they represent.

πŸ’‘Dilution risk

Dilution risk is the risk that the value of an asset is reduced due to an increase in supply. The video points out that Bitcoin has no dilution risk because its supply is capped at 21 million, unlike assets like stocks or real estate, which can be increased through issuance or construction, respectively.

πŸ’‘Decentralization

Decentralization is the distribution of functions and powers away from a central location or authority. The video discusses Bitcoin's decentralized nature, meaning that it operates without a central bank or single administrator. This is a key feature that contributes to its security and resistance to censorship or manipulation.

πŸ’‘Real estate

Real estate refers to land and the buildings on it. In the video, real estate is presented as an example of an asset that is currently overvalued and could be negatively impacted by the rise of Bitcoin. The script suggests that as Bitcoin becomes more widely accepted, it may lead to a repricing of real estate and other assets, as they are not as effective at preserving wealth.

πŸ’‘Hedge

A hedge in finance is a position taken to offset potential losses in one investment by making an opposite position in another investment. The video describes Bitcoin as the ultimate hedge against inflation and financial instability, suggesting that its fixed supply and unique properties make it a reliable store of value in times of economic uncertainty.

Highlights

Global total wealth is 900 trillion, with Bitcoin currently valued at 1 trillion, suggesting a massive potential for Bitcoin's price increase as wealth seeks a superior store of value.

Less than 100 billion of Bitcoin's 1 trillion valuation is available for sale, indicating a scarcity that could drive up its price as wealth tries to fit into this 'hole'.

Bitcoin's fixed supply and unique properties make it an ultimate hedge against inflation and financial instability, according to Joe Bernett's report.

Investing in real estate may be unethical and harmful to society's access to housing, with Bitcoin offering better long-term returns.

Bitcoin's adoption is growing rapidly, leading to hyper volatility due to its compound annual growth rate of around 130-140%.

The volatility of Bitcoin is a result of its fast global adoption, not a reflection of its intrinsic value as a store of value.

Bitcoin's monetary properties, such as scarcity, portability, durability, divisibility, and fungibility, make it superior to traditional monetary tools.

Bitcoin's predetermined supply schedule, free from manipulation by any single group or person, contributes to its stability and reliability as money.

The comparison between Bitcoin and traditional assets like gold, stocks, and real estate highlights Bitcoin's lack of dilution and counterparty risk.

As Bitcoin continues to be adopted, its price is expected to increase significantly, with potential for massive bull and bear markets.

Bitcoin's fixed supply of 21 million coins, with 94% already mined, suggests a limited supply that could lead to increased value as demand grows.

The current global adoption of Bitcoin is estimated to be less than 1%, indicating a vast potential for growth and price appreciation.

Bitcoin's potential to store a quadrillion dollars without the need for mining more coins sets it apart from assets like real estate and gold.

The concept of money naturally converges to the asset with the best monetary properties, which today is Bitcoin, not gold.

Societies have monetized assets like real estate that should not be, but with Bitcoin, there's a better form of savings and value preservation.

The adoption of Bitcoin as a standard for money will gradually lead to the demonetization of assets like real estate, which are currently overvalued.

Bitcoin fundamentally shifts financial incentives from spending and consumption to saving and conservation, promoting a more sustainable economic model.

The Invisible Hand of free markets and capitalism will naturally lead individuals to adopt Bitcoin, benefiting both themselves and the world economy.

Transcripts

play00:00

if Global total wealth is 900 trillion

play00:02

and bitcoin's currently at 1 trillion

play00:05

and of that 1 trillion probably less

play00:07

than 100 billion is currently available

play00:09

for sale then 900 trillion trying to fit

play00:12

in this 100 billion hole is just going

play00:15

to absolutely explode the price of

play00:18

Bitcoin it could become worth more than

play00:20

everything that we've value today just

play00:22

because all those other assets were

play00:24

already inferior stores of value we woke

play00:25

up tomorrow and said everyone's house is

play00:27

worth $10 million well there's going to

play00:29

be a lot of people building houses and

play00:30

bringing that back down to reality

play00:32

whereas Bitcoin if we stored a

play00:34

quadrillion dollars in Bitcoin tomorrow

play00:37

a lot of people would start mining it

play00:38

because we still have a block subsidy

play00:39

and stuff like that but they can't mine

play00:42

too much more an infinite amount of

play00:44

wealth can actually fit inside Bitcoin

play00:46

whereas an infinite amount of wealth

play00:48

cannot fit in real estate or can't fit

play00:50

in Gold because if we try to fit an

play00:52

infinite amount of wealth in these

play00:53

assets we're just going to go figure out

play00:54

how to make more of them Joe Bernett is

play00:57

the senior product marketing manager at

play00:59

Unchained and respected voice in the

play01:01

Bitcoin Community today we explore his

play01:04

latest report your wealth is melting Joe

play01:07

provides deep insights into why

play01:09

bitcoin's fixed Supply and unique

play01:11

properties make it the ultimate hedge

play01:13

against inflation and financial

play01:15

instability join us as Joe explains how

play01:17

Bitcoin can restore a population's

play01:19

ability to save and redefine the concept

play01:22

of money and capital he poses the

play01:25

question that investing in real estate

play01:27

may actually be unethical and can harm

play01:30

society's access to housing emphasizing

play01:32

that Bitcoin will offer better long-term

play01:34

returns anyway this fact will become

play01:37

more and more obvious over the next

play01:38

decade while Bitcoin reprices the world

play01:41

slowly demonetizing these overleveraged

play01:43

asset classes like real

play01:45

estate but before we do that I want to

play01:48

introduce our sponsors stamp seed the

play01:51

orange pill app and Swan our partners

play01:53

are businesses and people that we

play01:55

respect and our products that we at viit

play01:57

intelligence personally use you're

play02:00

watching 21

play02:02

Voices if you really think about money

play02:05

from first principles and you don't come

play02:07

in with that you know gold only

play02:09

cognitive bias then you're going to come

play02:12

to the conclusion that Bitcoin is the

play02:13

better money the perfect asset would

play02:16

have these two qualities it would have

play02:17

no dilution risk and no counterparty

play02:20

risk right so no dilution risk means we

play02:23

can't create more of it no matter how

play02:24

much energy or time is spent trying to

play02:26

produce it and then no counterparty risk

play02:28

means it's a bare ass like you can hold

play02:30

it in your hand it doesn't rely on any

play02:32

government or company or another person

play02:36

to be to be valuable and when you look

play02:38

at Assets in today's world whether

play02:40

that's real estate stocks bonds gold

play02:44

they all have one of those two problems

play02:46

if not both of those problems they can

play02:48

all can be diluted over time or they all

play02:50

have counterparty risk and so I think

play02:52

people see Bitcoin as speculative right

play02:55

now because it's hyper volatile but the

play02:57

only reason it's hyper volatile is

play02:59

because it's

play03:00

Global adoption is happening so fast

play03:02

right like over the last 13 years I

play03:04

think Bitcoin has like 140% or 130%

play03:08

compound annual growth rate so it's a

play03:10

pretty massive insane growth and the

play03:13

volatility comes from the growth right

play03:15

like it if Bitcoin was going up in a

play03:17

straight line everyone would start

play03:19

buying Bitcoin and we would have a

play03:20

massive bull market and then it would

play03:22

get way too overextended based on like

play03:24

how many people that own Bitcoin

play03:26

actually understand it and then we'd

play03:27

have a massive be Market which is

play03:29

exactly what happened right so we if we

play03:31

had 138% of compound anual growth in you

play03:34

know perfect exponential line it would

play03:36

it would bubble up and do exactly what

play03:38

it does and that's you know exactly what

play03:39

it's been doing for the last 15 years

play03:41

and I think that scares people away

play03:44

because they see that volatility as a

play03:46

very speculative you know scary thing

play03:50

but they fail to like actually zoom out

play03:53

and think on a longer time Horizon take

play03:55

the four-year approach for each having

play03:58

Epoch and think about what makes a good

play04:01

money a good money recognize that it's

play04:05

not that Bitcoin you know is a medium

play04:07

exchange today or is a unit account

play04:09

today or is a store value today that

play04:11

makes Bitcoin a good money what makes

play04:12

something a good money is it has

play04:13

specific monetary properties and like I

play04:16

mentioned before it's scarce portable

play04:17

durable divisible fungible if the money

play04:21

has or if a tool has those monetary

play04:23

properties it's clearly objectively

play04:26

better than all the other monetary tools

play04:29

and and that's not like a speculative

play04:30

bet that you know Bitcoin is more

play04:32

portable than gold there's no

play04:33

speculation that Bitcoin is more scarce

play04:35

or portable than gold that's just

play04:37

objective fact and so yes the

play04:39

speculation is from the volatility which

play04:41

is from the massive growth that Bitcoin

play04:44

has had and the objective reality is

play04:46

just that Bitcoin is a better form of

play04:48

money because you can look at its

play04:50

monetary properties the supply schedule

play04:52

is algorithmic it's predetermined no

play04:55

single group can change it no single

play04:58

person can change it if you knew exactly

play05:00

like what Apple's earnings per share was

play05:01

going to be for like the next 20 years

play05:03

you would know like exactly how to price

play05:05

Apple today and it would probably not be

play05:07

super volatile know no one knows how to

play05:09

price Bitcoin because it's just money

play05:11

and no one no one is thinking about

play05:12

Bitcoin is money and so the adoption is

play05:15

happening really fast because more and

play05:16

more people are coming in and

play05:17

recognizing it's just Superior for money

play05:19

better store value as Bitcoin continues

play05:23

to get adopted then there's just going

play05:24

to be more and more price increase in

play05:27

Bitcoin and it's going to go up in these

play05:29

massive markets and Then followed by

play05:30

these massive beer markets washing out

play05:32

the people that don't fully understand

play05:34

what Bitcoin is I think it's probably

play05:35

going to keep happening over and over

play05:37

again until a large majority of the

play05:39

world actually just throws in the towel

play05:41

and recognizes like hey Bitcoin is

play05:42

actually just money we've monetized all

play05:45

of these things that shouldn't be

play05:46

monetized and now that Bitcoin exists

play05:49

because it's perfectly scarce and

play05:51

because we have all this immense wealth

play05:53

a lot of that wealth can just go into

play05:55

Bitcoin and it's probably going to be a

play05:56

lot more than than people even imagine

play05:58

because right now we're at like 94% of

play06:01

all Bitcoin have already been mined I

play06:02

would say Global adoption of Bitcoin is

play06:04

like less than 1% we know that Bitcoin

play06:07

is the best tool for for long-term

play06:09

savings and and since 94% have already

play06:11

been mined there's not really a big

play06:14

reason for the people that hold a lot of

play06:16

Bitcoin to cash out of Bitcoin and to to

play06:18

sell something else right like they

play06:20

could invest their their Bitcoin or they

play06:22

could consume buy whatever they want to

play06:24

bribe but like at the end of the day

play06:25

like if they want to just keep letting

play06:27

their wealth grow they just keep holding

play06:29

bit coin so I think all of this wealth

play06:31

is going to try to fit in this very

play06:33

small hole that is Bitcoin if Global

play06:36

total wealth is 900 trillion and

play06:39

bitcoin's currently at 1 trillion and of

play06:42

that 1 trillion probably less than 100

play06:44

billion is currently available for sale

play06:47

then 900 trillion trying to fit in this

play06:49

100 billion hole is just going to

play06:52

absolutely explode the price of Bitcoin

play06:54

it could become worth more than

play06:57

everything that we' value today just

play06:58

because all of those their assets were

play07:00

already inferior stores of value we woke

play07:02

up tomorrow and said everyone's house is

play07:03

worth $10 million well there's going to

play07:05

be a lot of people building houses and

play07:07

bringing that back down to reality

play07:09

whereas Bitcoin if we stored you know a

play07:12

a quadrillion dollars in Bitcoin

play07:14

tomorrow a lot of people would start

play07:16

mining it because we still have a block

play07:17

subsidy and stuff like that but they

play07:20

can't mine too much more an infinite

play07:22

amount of wealth can actually fit inside

play07:24

Bitcoin whereas an infinite amount of

play07:26

wealth cannot fit in real estate or it

play07:28

can't fit in Gold because if we try to

play07:30

fit an infinite amount of wealth in

play07:31

these assets we're just going to go

play07:32

figure out how to make more of them

play07:34

please bear with us for a quick message

play07:36

from our sponsors these videos take a

play07:38

lot of time to make and we've partnered

play07:40

with Brands We Trust like stamp seed and

play07:42

the orange pill app in order to get the

play07:44

funding we need to bring you these

play07:45

videos every week don't store your

play07:48

Bitcoin in Cold Storage without stamping

play07:50

your seed phas on an indestructible

play07:51

titanium plate stamp seed is fireproof

play07:54

rust proof impact proof and easy to hide

play07:58

it has no loose parts will give you

play07:59

ultimate peace of mind that your Bitcoin

play08:01

is safe and sound for the long term

play08:04

click the link in the description below

play08:06

for 15% off your stamping

play08:10

kit when I finally got Bitcoin it hit me

play08:13

like a lightning bolt it was the

play08:15

currency of the future the only money

play08:17

that truly mattered but there was a

play08:20

problem I didn't know anyone else that

play08:22

thought like me that is until I

play08:25

discovered the orange pill app suddenly

play08:27

I was connected with a network of

play08:28

like-minded Bitcoin enthusiasts right in

play08:31

my own City the orange pill app is more

play08:33

than just a social network it's a

play08:35

community of passionate individuals

play08:36

determined to change the world one

play08:38

Satoshi at a time this series is brought

play08:41

to you by Swan and created by bit

play08:43

intelligence remember to like this video

play08:45

And subscribe to both our channels for

play08:47

more videos like this every week thanks

play08:49

for watching if you hold wealth in gold

play08:52

or if you hold wealth in real estate

play08:54

those are all melting ice cubes like

play08:57

Michael sailor likes to talk about the

play08:59

US dollar as a melting Ice Cube but it's

play09:01

really a lot of assets that we hold

play09:04

today are melting ice cubes they're

play09:06

melting slower than silver or bronze or

play09:10

shells but they're all still melting a

play09:13

little bit and Bitcoin is this one asset

play09:15

that has no energy loss no matter how

play09:18

much time or energy that's used to mine

play09:22

more Bitcoin or create more Bitcoin we

play09:25

can't make more of it there is no more

play09:27

melting the Bitcoin Ice Cube there it's

play09:29

just it's the ice cube that exists and

play09:31

you can hold this perfectly unmeltable

play09:34

Ice Cube in Cold Storage when it comes

play09:36

to holding Bitcoin you want to make sure

play09:38

that you have this perfectly unmeltable

play09:41

Ice Cube and you want to make sure that

play09:44

you're not going to lose it you're not

play09:45

going to bad things are not going to

play09:47

happen to it it's not going to get

play09:48

stolen um and if you have something like

play09:51

multisig or collaborative custody with

play09:53

with Unchained you can make sure that

play09:55

the Bitcoin that you have doesn't get

play09:57

lost doesn't get stolen and that you

play10:00

actually do keep your wealth in this you

play10:02

know one asset that doesn't melt and you

play10:05

can have it for generations and make

play10:08

sure that you are able to successfully

play10:10

pass it on to your kids your grandkids

play10:13

or or whoever or use it to you know

play10:15

spend a portion of it on whatever you

play10:18

want you know 20 years or 10 years or 50

play10:20

years or 100 years down the line I

play10:23

mentioned before how money turns to one

play10:25

most sailable good and it's the one with

play10:27

the best monetary properties eventually

play10:30

the entire world will be there but for

play10:31

now an individual is who makes the

play10:34

decision for for you for me for anybody

play10:37

and you decide if you want to be on a

play10:38

Bitcoin standard and just because other

play10:41

people aren't deciding to be on a

play10:42

Bitcoin standard doesn't mean that

play10:44

Bitcoin isn't already better money you

play10:45

know we can see that today right like if

play10:48

you are using Bitcoin as your form of

play10:49

money and you're using it as a unit of

play10:51

account and you know store value then

play10:54

you can already see what's happening on

play10:56

a Bitcoin standard you can see the

play10:58

prices of Real Estate falling you can

play11:00

see the prices of strawberries falling

play11:02

it's already occurring it's probably

play11:04

going to be occurring faster as more

play11:06

people recognize that it's already

play11:08

occurring and adopt Bitcoin as their

play11:10

money too but I think it's just going to

play11:12

be a process gradual process that over

play11:15

time they're just going to start using

play11:17

Bitcoin as their unit of account too

play11:19

part of what's going to wake people up

play11:21

or help them accelerate the process of

play11:24

moving to using Bitcoin as money is

play11:27

helping people realize that that hey

play11:30

your house that you bought for half a

play11:31

million dollar a couple years ago it it

play11:34

may be worth $700,000 today but it

play11:37

didn't actually go up in value in

play11:39

Bitcoin terms you might have bought your

play11:40

house for 30 Bitcoin and now it's worth

play11:43

7even Bitcoin so your house is actually

play11:45

falling in value because it's an it's a

play11:47

consumption item it's not an investment

play11:50

maybe you should think about hey I don't

play11:52

want my M wealth to continue melting

play11:54

away so if I'm going to save wealth for

play11:56

the future I need to do that in the best

play11:59

monetary tool possible and if I do

play12:01

speculate and have investments in apple

play12:03

or Nvidia or real estate I need to make

play12:06

sure that those Investments have been

play12:08

and will be good Investments and if you

play12:11

know apple or the S&P 500 or real estate

play12:14

is falling in Bitcoin terms then I need

play12:17

to wake up and recognize that and cash

play12:20

out into the better form of money that

play12:22

will actually preserve purchasing power

play12:24

better I think the world will be a lot

play12:26

better of a place because of this a lot

play12:27

of people hoard real estate today like

play12:29

someone might have a portfolio of a

play12:32

hundred single family homes and then

play12:34

they rent it out to people all over the

play12:36

world well I think what would be good is

play12:38

if they recognize that they can get a

play12:40

better risk adjusted return by just

play12:42

buying and holding Bitcoin they sell

play12:44

their portfolio of a 100 single family

play12:46

homes back to people that actually just

play12:48

want the homes to live in to have a

play12:51

family or whatnot the investor gets a

play12:53

better deal because they're going to

play12:54

have a higher risk adjusted return and

play12:56

then people that are using homes for

play12:59

what they're intended to be used for as

play13:00

consumption items to live in uh they get

play13:03

a cheaper home because investors

play13:04

actually start selling their homes real

play13:06

estate is actually kind of a Ponzi

play13:07

scheme or a bubble right like you're

play13:09

buying something that's like super

play13:11

overvalued and you're just hoping that

play13:13

it keeps going up because other people

play13:15

are going to have to buy it from you at

play13:16

a higher price or the market you know

play13:18

the market price of it is going to go up

play13:19

over time for whatever reason because

play13:21

people other people happen to be

play13:23

hoarding it but now that Bitcoin

play13:24

actually exists there's a better way and

play13:26

since money turns to one there's no

play13:28

point in holding the second best money

play13:30

you should actually cash out of your

play13:31

real estate as soon as possible and uh

play13:33

yeah I think the world would be like a

play13:34

much better place if that actually does

play13:36

happen I think it will I think it's

play13:38

happening right now and yeah that's like

play13:40

the whole concept of Adam Smith's

play13:42

Invisible Hand of of free markets and

play13:45

capitalism where when there are the

play13:48

right tools at disposal you as an

play13:51

individual acting in your own self- is

play13:54

actually going to be the most beneficial

play13:56

for the entire world rather than trying

play13:58

to Cally plan the money or centrally

play14:00

plan a government or centrally plan an

play14:02

economic system around you know one

play14:05

person's perfect idea of the world you

play14:08

just let people act in their own

play14:09

self-interest and because of this idea

play14:11

of the Invisible Hand in free markets

play14:14

that actually benefits everybody uh in

play14:16

in a really big way in the long run it's

play14:18

going to be great for to demonetize real

play14:20

estate it's going to be great to

play14:21

demonetize a lot of assets that

play14:23

shouldn't really be monetized Bitcoin

play14:25

fundamentally shifts its Financial

play14:27

incentives from spending to saving from

play14:30

consumption to conservation Joe explains

play14:33

how the perfect asset is one that

play14:35

fulfills the most monetary properties

play14:38

historically this has been gold but

play14:40

today it's objectively Bitcoin he

play14:43

reminds us that societies tend to

play14:44

converge on a single form of money and

play14:47

without a proper savings vehicle we've

play14:49

monetized assets that shouldn't be

play14:51

monetized imagine if a house depreciated

play14:54

like a car another consumption item as a

play14:57

car ages it loses value due to wear and

play15:00

tear with only special models

play15:02

maintaining their worth although not all

play15:04

houses depreciate at the same rate both

play15:07

cars and houses are likely to naturally

play15:09

depreciate over time against Bitcoin

play15:12

highlighting the superiority of Bitcoin

play15:14

as a store of

play15:15

value stay tuned and remember to

play15:18

subscribe for the latest Recaps insights

play15:20

and films about all things Bitcoin this

play15:23

is 21

play15:24

Voices if you want to watch another

play15:26

episode try this one here

Rate This
β˜…
β˜…
β˜…
β˜…
β˜…

5.0 / 5 (0 votes)

Related Tags
BitcoinInflation HedgeFinancial InstabilityAsset ValueMonetary PropertiesScarcityPortfolio ManagementReal EstateGoldInvestment Strategy