Bitcoin Revolution: The Future of Digital Capital
Discover how Bitcoin is transforming global wealth and paving the way for a new economic era.
Let’s talk about Bitcoin today. You’ve heard of it; perhaps you’ve heard it’s a fad, a fraud, or a way for criminals to conduct business. Perhaps you’ve mined Bitcoin, or perhaps you’ve bought some via PayPal, CashApp, or one of the ETFs available on the stock exchange.
You may not realize that we are at the beginning of a Bitcoin revolution! You may not value Bitcoin's transformative power in place of fiat currencies and how it can rebuild our global economy with digital capital. Our world is rooted in 20th-century ideas and technology and feels stuck in the past. Stock trading hours are restrictive, transactions are slow, and costs are high, whereas Bitcoin can transact 24/7/365. To thrive in the 21st century, we need intelligent, impervious, innovative ideas built on cutting-edge technology.
While approximately $500 trillion in global private wealth today, Bitcoin only represents roughly $1.5 trillion (.3%), going from nothing in 2009. Bitcoin started as a niche and is growing into a powerhouse asset of unequal comparison.
This wealth isn't just $500 trillion in assets; it's a mix of utility-value assets and long-term capital storage. Think of it this way: buying a house for living versus investing in bonds simply because there's no better option for your money. When viewing the world as a vast pool of long-term capital—over $450 trillion—you see the potential for a revolutionary shift.
As we continue on our current path, utilizing fiat currency to value imperfect assets and our system to preserve, our capital is not only flawed but hurts our ability to maintain the value of those assets over long periods of time. There is a better system that does not use fiat. Note what Nikola Tesla said, "If you want to understand the universe, think in terms of energy, frequency, and vibration." Let's translate that into the physics of money and assets:Â
Energy is capital or wealth.
Frequency is the duration of an asset's useful life.
Vibration is the transfer or transformation of money.
Here’s a fundamental equation: Useful life equals the value of an asset divided by its maintenance cost. To preserve your money’s value, you must avoid depreciation. Many individuals and corporations currently use financial assets for this purpose, but these assets are fraught with challenges.
Consider financial assets: A billion dollars in the Peso can decay in two years due to high inflation. The Turkish Lira lasts three years, and the US Dollar, under traditional inflation, lasts about 14 years. Hedge funds, treasuries, and mutual funds each have their own decay rates. On average, financial assets last around 30 years, continuously diluted by inflation, taxes, and other factors.
Physical assets are no better. A Lamborghini, for instance, may require significant upkeep, quickly eroding its value as one has to put money toward its maintenance. Whether a beach home or a sprawling ranch in Montana, real estate faces similar depreciation and heavy maintenance costs. Even the longest-held properties have changed hands multiple times as their maintenance cost slowly comes out of reach for the original owner, proving that physical assets are not impervious to decay.
Enter Bitcoin in 2009. Satoshi Nakamoto’s creation is digital capital—immortal, immutable, and immaterial. Bitcoin is not subject to the physical world’s deteriorative forces, making it a secure, groundbreaking solution for our economic woes. I remember back in 2011 when I was first introduced to Bitcoin, proponents did not like valuing Bitcoin against the U.S. Dollar, as we know the USD will eventually go away, leaving Bitcoin to reign.Â
Storing your Bitcoin with a secure custodian at a minimal cost, ensuring a lifespan of 1,000 years. Self-custody with reliable hardware wallets can extend this to 10,000 years. With AI maintenance, the lifespan stretches to 100,000 years. Digital assets like Bitcoin transcend the limitations of financial and physical assets, offering unparalleled capital preservation.
The revolution extends beyond individual wealth. Nations can reallocate their treasuries from gold and bonds to Bitcoin, issuing currency to buy it and creating favorable laws to encourage Bitcoin ownership. This strategy can transform indebted and wealthy nations, leveraging Bitcoin's resilience and longevity.
The strategy for individuals, corporations, and institutions is clear: embrace Bitcoin as a primary treasury asset. Convert excess earnings and capital into Bitcoin, utilize subsidized credit, and find tax-efficient ways to maximize returns. Avoid risky financial practices and focus on long-term growth.
In summary, the Bitcoin revolution offers a new paradigm for capital preservation and economic prosperity. By transitioning from outdated financial and physical assets to resilient digital capital, we can overcome the limitations of the past and build a thriving future. Embrace the change, trade wisely, and join the revolution.