70 years old and having a tough time making sense of Bitcoin. Where does the value come from? But as the article points out governments keep printing money and are not creating additional value. Is the value only in perceptions? I will admit it is still a mystery, but I will continue reading and perhaps the light will go on. Any recommendations to help me better understand would be appreciated.
One thing I do understand; printing money to satisfy societies insatiable appetite for excess is not sustainable.
Great questions. So instead of it being a productivity model like we value stocks the value comes in the network of users. So each new user adds utility to the network. In the same way Facebook the app would be useless if it had no users.
Bitcoin which is the greatest money network is also decentralised so there’s increasing trust in it’s store of value capability because it can’t be corrupted.
I would highly recommend upgrading to an annual membership because I add in a private 1-2-1 call with me where we can walk through the steps of how to buy or how to think about it (all in plain English).
PS. To your last point everything is a perception. Gold is a social construct we put value on, so is religion and many other things like fandom and supporting 22 men on a field kicking a bag of air.
The efficiency of AI is astounding to me. I think it will make us much more productive. Is it *at all* feasible that AI will be the fertilizer that will grow our economy in such a way that more money printing is not necessary and there is somewhat of a reversal of the trend? Sorry, it’s the contrarian in me!
One basic pronlem with crypto.- how does mining by solvinĺg math problems give it fungible value; please explain why it is not just a belief system with no basis in reality.
It’s decentralised so there isn’t a centralised point of failure so it becomes incorruptible. Unlike the fiat system where money is printed daily. It’s also the best performing asset in the last 15 years. Don’t mid curve it Peter.
Draper said once he can buy food and pay taxes with Bitcoin then the dollar isn't necessary. Saylor didn't like Bitcoin at one point but then went all-in and look at where he is today, the leader of late capitalism. I admire his front running the entire system. MS called him in for advice not about code but financial. He's not an advisor!
Of course bitcoin is doing well right now. They bought the US government and are using their influence to try and tank the dollar and dismantle the Fed. 😒😒😒
“Currently, the rate of money printing is approximately 9% per year. Add a current 2.5% inflation rate, so your real hurdle rate to stay even is 11–12%….”
It’s not additive, if anything it’s the reverse. Money supply tracks nominal GDP so if it grows faster than real activity then the difference is made up by inflation. There are some brave assumptions involved.
I can at least agree the fiat currencies are being debased.
70 years old and having a tough time making sense of Bitcoin. Where does the value come from? But as the article points out governments keep printing money and are not creating additional value. Is the value only in perceptions? I will admit it is still a mystery, but I will continue reading and perhaps the light will go on. Any recommendations to help me better understand would be appreciated.
One thing I do understand; printing money to satisfy societies insatiable appetite for excess is not sustainable.
Hey McGeno,
Great questions. So instead of it being a productivity model like we value stocks the value comes in the network of users. So each new user adds utility to the network. In the same way Facebook the app would be useless if it had no users.
Bitcoin which is the greatest money network is also decentralised so there’s increasing trust in it’s store of value capability because it can’t be corrupted.
I would highly recommend upgrading to an annual membership because I add in a private 1-2-1 call with me where we can walk through the steps of how to buy or how to think about it (all in plain English).
PS. To your last point everything is a perception. Gold is a social construct we put value on, so is religion and many other things like fandom and supporting 22 men on a field kicking a bag of air.
The efficiency of AI is astounding to me. I think it will make us much more productive. Is it *at all* feasible that AI will be the fertilizer that will grow our economy in such a way that more money printing is not necessary and there is somewhat of a reversal of the trend? Sorry, it’s the contrarian in me!
The AI is increasingly being seen as the life raft for productivity.
One basic pronlem with crypto.- how does mining by solvinĺg math problems give it fungible value; please explain why it is not just a belief system with no basis in reality.
It’s decentralised so there isn’t a centralised point of failure so it becomes incorruptible. Unlike the fiat system where money is printed daily. It’s also the best performing asset in the last 15 years. Don’t mid curve it Peter.
Great read. I'm also a RV and Saylor fan and agree Saylor definitely has a way of making the complex easy to understand and relatable.
Draper said once he can buy food and pay taxes with Bitcoin then the dollar isn't necessary. Saylor didn't like Bitcoin at one point but then went all-in and look at where he is today, the leader of late capitalism. I admire his front running the entire system. MS called him in for advice not about code but financial. He's not an advisor!
Spot on.
Thank you for this article. Helps really shed a light on what’s happening in a way us average Americans can understand.
Thank you for reading, Katie—nothing average about our friends across the pond.
I'm curious if you're looking at the larger environmental limits? Have you seen Nate Hagens take on this? https://www.youtube.com/watch?v=GkIedVEkQZU
Is not Bitcoin an example of Gresham's Law?
Of course bitcoin is doing well right now. They bought the US government and are using their influence to try and tank the dollar and dismantle the Fed. 😒😒😒
Who’s They?
The dollar is supposed to tank.
“Currently, the rate of money printing is approximately 9% per year. Add a current 2.5% inflation rate, so your real hurdle rate to stay even is 11–12%….”
It’s not additive, if anything it’s the reverse. Money supply tracks nominal GDP so if it grows faster than real activity then the difference is made up by inflation. There are some brave assumptions involved.
I can at least agree the fiat currencies are being debased.