Unfortunately, friends and family will start to pile into bitcoin when the price is no longer cheap.
Everyone will have bitcoin at the price they deserve.
The best way to acquire bitcoin without cash burn is through building cash flow positive business with high margin and low cost of capital. Ex. MSTR. Those businesses will have better competitive edge on acquiring Bitcoin than Bitcoin miners.
Bitcoin is an asset which monopolizes digital store of value with Proof of Work. It’s 99% dominance which is rare for a company but normal for network protocol like TCP/IP.
Market hasn’t understood the massive demand for such an asset.
The fake bitcoin spot eft news is irresponsible reporting from the crypto industry. The funny thing is the market actually went up to 30K and retraced back.
“It’s important to remember that big monetary changes have happened before. Every few generations the system resets itself and starts something anew. The period of change can be disruptive, but on the other side, something comes out that is either better or worse, depending on how we all work together to shape it. To use the control system analogy again, the metal ball is picked back up and put back in the electromagnet control system.” - @LynAldenhttps://www.lynalden.com/october-2023-newsletter/
There are phases when the best money should be hoarded and not transacted unless it’s necessary.
Don’t fool yourself into believing that giving up control of the best money is a way to prove its usefulness.
The most undervalued liquid asset of the world is Bitcoin:
Gold is inferior
Fiat is trash
Equities are expensive
Bonds are crashing
Real estate is over-allocated
Fiat money represents an unusual era in the history of money. I believe that with the creation of Bitcoin, the days of fiat are numbered. We are on the path to restoring sound money to our financial system.
“What an investor needs is the ability to correctly evaluate selected businesses. Note that word “selected”: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence.”
- Warren Buffett
When I first dabbled around the idea of crypto, I was learning new stuffs everyday. However, at some point, I started to question everything and became skeptical about the idea. Then, I began to think deeper and search for what’s real. During that process, I found bitcoin and fallen into the rabbit hole.
I am sure many of us share the same journey. If you have arrived, congratulations.
Which way?
Debase money to solve the big debt problem, but inflation runs wild and more indirect tax on people.
Or…
Raise interest rate to solve inflation, but more interest to pay the debt and chance to be insolvent.
Gold without programmability and absolute scarcity trade at $10 trillion market cap compare to Bitcoin’s $500 billion market cap.
Gold is perhaps the most overvalue commodity ever?
Why a Traditional VC Model Doesn't Align with the Bitcoin Standard?
A Thread:
Time Preference: In the VC world, there's a high time preference to deploy capital due to the typical deployment period. This urgency can sometimes lead to hasty decisions, not always aligning with the long-term value proposition of Bitcoin.
Illiquid Equity Risks: Investing in illiquid equity presents challenges. There's the risk of dilution, which can erode shareholder value. Additionally, liquidity events can be unpredictable, making exit strategies complex in a Bitcoin-centric ecosystem.
Fiat's Counterparty and Debasement Risk: In traditional VC, fiat often serves as the primary liquid position. However, its inherent counterparty risk (e.g., SVB) and debasement risk from central bank actions highlight its vulnerabilities in the current financial landscape.
While the VC model has its merits, adapting it to the Bitcoin Standard requires a reevaluation of strategies.
The solution is simple: prioritizing Bitcoin allocation can truly harness the potential real return for LP investors without facing the problems identified above.
The Bitcoin Standard's author, @saifedean, sums it up elegantly, “Sound money allows people to think about the long term and to save and invest more for the future. Saving and investing for the long run are the key to capital accumulation and the advance of human civilization.”
In a Bitcoin bear cycle, many people ignore the significant progress made and continue to focus on negative and false narratives until the market inevitably improves. That’s where you find a bargain in price.
I’m heading to Nashville. I’ve heard a lot of great things about BitcoinPark. I’m looking forward to connecting with people excited about Bitcoin from around the world.
Bitcoin holds the potential to unify the world in the aftermath of deglobalization.
Despite governmental resistance, Bitcoin is set to emerge as the dominant currency in a revitalized, free global capitalistic economy.
In this new age of globalization, driven by free market money, we can expect an economy that is more efficient, localized, peaceful, and prosperous.
As I've observed, Bitcoin is already functional for numerous small communities worldwide, leveraging increasingly advanced technologies built around it, such as the Lightning Network and Nostr. These communities will persist in their growth, and more will emerge. As we navigate through deglobalization, heightened government regulations, increased sanctions, diminishing privacy, the rise of AI, and rampant money printing, I remain optimistic about the future because of Bitcoin.
In an era dominated by infinite AI and fiat currency, people will rediscover #Bitcoin for its unique inability to be mass-produced, copied, or recreated.
Crypto is promoting dollarization under the guise of decentralization. The result is USD stables on every device, inadvertently strengthening the Fed's influence.
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Notes by Louis | export