As we sit at the intersection of finance and technology, or how we use and store our money, I’m energized by the potential for both disruption and profit. The monetary system that we currently have in place today is outdated due to new technology, and is broken due to corrupt politics and crony capitalism.
I believe in principles of personal liberty, and I am thankful to have been born in the U.S. where we, at least for some time, have experienced more political, religious, and financial liberty than most if not all of the world. However, our system is obviously not perfect, and bitcoin and/or an array of new digital assets have the potential to be financial freedom in the truest form that we have ever seen.
As interesting as it is to me, and although none of the information in this post or those that follow should be taken as investment advice, the real reason for sharing my thoughts is the potential impact it can have for my friends and family. I know real people whos real lives have changed because of investments they’ve made – both for better and for worse. I know multiple people who have made and lost tens of thousands (and more) of dollars trading bitcoin over the last 10 years. Yet, as I write this today, I still believe that the potential for mass adoption of digital assets in the internet age is worth a hard examination, if not more. After all, as the price of Bitcoin sits above $39,000/BTC today, anybody who purchased bitcoin at any time and held it to now has seen a positive return on the investment (as is the case with many stocks making new all-time highs today, not that bitcoin is a stock). Note: Past performance is not indicative of future results.
I’ve provided links below to some of the more basic themes and factors that contribute to my view. If you’re not new to bitcoin, the links below will bore you. As time goes on, I will share more technical and complex articles, including where and how I have considered acquiring BTC and developments in price action as it relates to forecast. I will always do my best to simplify (as much for myself as for anyone else). Tread at your own risk.
Where to Begin
- The Bitcoin Standard – audiobook – I can’t find a non-audiobook version, and it doesn’t matter. Find a way to read/listen to this. My favorite part of the book is about the History of Failed Government Money and why we went onto (1879) and then left (1971) The Gold Standard.
- There will only ever be 21 million bitcoin. Around 20% of that amount is expected to have already been lost forever.
- What is inflation? Ever wonder why the cost of your rent increases each month? Or the cost of many of your subscriptions, goods, or services rise, regardless of whether your paycheck rises with it? Or how your grandpa filled up the gas tank of his old truck for $5?
- The current supply of U.S. Dollars floating around, as shown by the U.S. Federal Reserve Bank (m1 money supply)
- The History of U.S. Monetary Policy and Fiascal Policy, AKA the tools the government use to try to speed up, maintain, or slow down the economy. These tools include interest rates, tax policy, stimulus checks, money supply, etc. For example, U.S. Monetary Policy currently targets inflation of 3% per year (prices rising 3% per year) and has implemented record-low borrowing rates with the intended purpose of stimulating consumer spending by disincentivizing saving (near zero returns). Check out this chart on the history of interest rates.
- The American Institute for Economic Research released a paper, “Why Does Bitcoin Have Value” – written at $20,000 BTC in December 2020
- I’ve tweeted about bitcoin/money markets for +6 years. I’m not a genius, but I follow some sharp people who put out great educational content and context. I will share what I learn @jbtckingaling.