Bitcoin is Gen Z's Greatest Opportunity.
Today, everyone you talk to feels the pressure of rising housing costs, vacations, groceries, retirement, etc.
But not everyone can articulate why.
The biggest problem driving all of this is monetary debasement.
Most of us trade our time for dollars, while bankers create dollars out of thin air.
To “get ahead” financially we need to add assets to our lives as fast as possible because the dollars we earn lose value quickly.
The government likes to use the CPI to track inflation, but this metric is cherry-picked to fit whatever narrative suits their agenda.
A much better metric to track is monetary expansion, the amount of dollars in circulation.
As more dollars enter the economy, the value of each dollar declines.
The cost of goods increases because more dollars are chasing the same amount of goods.
When fresh money is printed, it flows into assets like stocks and real estate because investors know holding dollars is a losing game.
Asset owners get wealthier, while the middle class and younger generations, like Gen Z, fall further behind.
Since 1973 Canada’s M2 money supply has grown at about 8% a year.
The cost of life doubles every nine years or so.
So if you’re not growing your wealth by 8% a year, every year, you’re falling behind.
Now introduce AI & robotics that can do things faster and cheaper than humans, at an infinite scale.
Humanity is becoming infinitely more productive, producing goods faster and cheaper than ever before.
The natural state of the free market is deflationary.
Logic suggests that prices should fall due to this efficiency.
But they won’t.
Our current debt-based monetary system doesn’t allow for deflation.
The system requires more dollars, weakening the currency to make it possible to pay back debt.
If prices of goods were to decrease, deflation would occur, increasing the value of dollars.
The real value of debt would skyrocket.
Leading to defaults, bankruptcies, and a collapse of the entire financial system.
Not only are we being debased, but we’re also missing out on the productivity gains that should be reflected in lower prices.
Even more dollar printing becomes necessary to compensate for this increase in productivity.
@Jeff Booth 's book, The Price of Tomorrow, is a must-read on this topic.
Now enter Bitcoin.
The world's first digital, finite, sound money.
The opposite of monetary debasement.
“Over a rolling 12-month period, Bitcoin had the highest average correlation with global liquidity, followed closely by gold”
Sam Callahan and
@Lyn Alden wrote a great piece on the correlation of global liquidity and Bitcoin:
Lyn Alden
Bitcoin: A Global Liquidity Barometer
This research piece on the correlation between measures of liquidity and the price of Bitcoin was compiled and written by Sam Callahan, and commiss...
Bitcoin has the attributes of real money: durable, divisible, portable, scarce, verifiable, secure etc.
Most have forgotten what real money is... so when Bitcoin is staring at them as a solution to this debasement they call it a "ponzi" or "not physical so it can't be trusted" or ask “where are the cash flows?”.
The digital concept seems to be difficult for people to understand.
Everything you see on a screen is a representation of reality.
Files can be copied, time can be manipulated, and information spreads globally.
Before Bitcoin, no one had successfully engineered money that would work in cyberspace.
Good money has always needed physical constraints, like gold, which takes real-world energy to mine.
Bitcoin mining requires real-world time and energy.
Every satoshi represents the effort expended to create it.
@jack mallers does a great job explaining this in his “There Is No Second Best” talk at BTC Prague.
When the U.S. left the gold standard, the dollar became abstracted.
It’s no longer tied to real-world efforts.
Without having money linked to physical reality, you can cause strain on a system without doing much work yourself.
Aka the FED.
Today’s dollars are just numbers on a screen, and there's no limit or effort required to create more.
With a couple of clicks, POOF another trillion dollars.
This system benefits those who control the money printer while everyone else works harder for less.
Bitcoin is completely different.
It’s fair, censorship-resistant, energy-backed money.
Anyone, anywhere in the world can transfer value to one another without relying on a third party, instantly, at practically no cost.
For the unbanked, all that’s needed is an internet connection to securely store and transfer value worldwide.
This is revolutionary, allowing financial access to millions (or billions) of people who have been excluded from traditional banking systems.
Bitcoin’s most important feature is its scarcity.
There can only ever be 21 million Bitcoins.
Unlike dollars, gold, stocks, or real estate, no amount of demand can increase Bitcoin’s supply.
The result? Simple. It moves the price.
An infinite amount of dollars are fighting for a finite amount of Bitcoin.
Bitcoin is insurance on fiat debasement.
As Greg Foss says, “Bitcoin = math + code = truth.”
Finally, Bitcoin’s volatility.
Yes, Bitcoin will likely drop 40%, 50%, or even 60% again, but those dips fuel the upside.
With a $2 trillion market cap, Bitcoin is still small, finding its place in a $900 trillion global economy.
We’re in it’s monetization phase. Volatility makes sense.
Over the past 4 years, the CAGR is ∼40%.
Even the LOWEST 4 year CAGR was ∼25%.
It’s crushed EVERY asset and money manager's returns over the past 15 years, and it’s not stopping.
There’s no point in settling for a “safe” 12% return.
After 8% debasement, you’re barely getting ahead.
It’s also the least "risky" time to buy Bitcoin.
BlackRock is promoting it, nation-states are stacking it, and Putin says there's no stopping it.
This is Gen Z’s ticket to building real wealth.
Bitcoin is the bank of the digital economy.
Don’t sit on the sidelines while nation-state game theory unfolds without you.
Get off zero.
#Bitcoin #GenZ
