Financial education is entirely omitted in classrooms, students are not furnished with the necessary faculties to effectively contend with the realities of existence and this is not solely limited to financial education either.
Indeed, many are aware that the opposite is typically the case: teenagers are encouraged to take on colossal amounts of debt to secure a university education, condemning them to the Sisyphean trial of endeavoring to pay back their debts while simultaneously facing minimal prospects of employment.
We are constantly being handed advice from individuals who have no experience in building wealth.
Needless to say, I spent the next hour outside the classroom in the hallway to “think about what I had said.” Indeed, to this day I still think about that interaction and the validity of the retort seems to become more and more apparent as time goes on.
My teacher’s response is emblematic of the attitude adopted by most individuals in society today, acceptance of the status quo and overreliance on outdated models of operating in the world — which are increasingly becoming more and more anachronistic, particularly as they relate to one’s finances and future prospects.
To be clear, endeavoring to attain a good education and working hard are indeed virtuous, worthwhile pursuits, but the means for acquiring these things or enacting them are multi-dimensional.
Faith in our existing institutions has all but evaporated, owed primarily to their lack of leadership and their cascade into corruption; with the odor of lies and deceit filling the halls of our establishments, their repugnant behavior is apparent to all.
As such, this article addresses these matters and provides an explanation as to why Bitcoin is the remedy and lighthouse in the fog.
Employing a first principles approach to money management will allow us to better understand the necessity for appropriately allocating our capital in order to improve our financial health and attain prosperity.
The concept of saving is repeatedly parroted by mainstream society and financial “experts” and has served to become axiomatic in the minds of many.
As a natural corollary to this, in everyday vernacular, we also say that we “spend” time; we spend time with our friends and family, we spend time in meditation, we spend time doing our hobbies, etc.
Big deal — what does it matter? Well, although this may appear arbitrary, it unfortunately matters a great deal , since most store their time in fiat currency, which can .
In the existing paradigm the way to combat this and insulate your purchasing power requires that the individual generate a return on their money, and that return needs to be superior to the current inflation rate — that is what the game is really all about.
This effectively comes down to the choice of holding your wealth in sound money or soft money.
Integrity: Fiat money stored in a bank benefits from zero integrity because of a lack of protection from inflation since the interest rate does not beat even the official inflation rate.
It is hard for someone to enter a bank and steal your money; the cash is either stored behind four feet of steel in a vault or nowadays, stored digitally.
It would prove problematic if one were required to leave their country in the case of an emergency, as can be seen with the recent crisis in Ukraine.
There is no use withdrawing cash and carrying it across borders since it would be either useless in a country with a different currency or the exchange rate would prove unfavorable and thus not optimally liquid, as well as presenting a pronounced risk to one’s safety because of susceptibility to theft or coercion.
It is actually deflationary in nature with its integrity always guaranteed, since no individual or entity can alter the supply cap owing to its decentralization.
You can enter a new country with all of your wealth intact, purchase a sim card and spend your bitcoin or sell it for the local currency to purchase food and accommodation.
Although CBDC proponents advocate for its use as means of protection against fraud and money laundering, they conveniently omit the tremendous power imbued in its issuers.
Having demonstrated that allocating your capital within the confines of a bank is a liability, it is becoming increasingly apparent that entrusting your money to these institutions will no longer remain solely a liability.
There are other investment options such as precious metals, real estate, government and corporate bonds, fine art, wine, antiques and many other options that could be used as stores of value.
However, bitcoin remains supreme in its role as the optimum store of value based on it being able to most effectively satisfy the core properties of money as demonstrated above.
Note: The increasing popularity of democratized finance, emergence of fractional ownership and growing popularity of NFTs are set to digitally dematerialize traditional stores of value.
In my opinion, you can’t blame them since they are oftentimes simply regurgitating what is expounded by the mainstream media in order not to appear ignorant on the subject.
The price of bitcoin is indeed volatile if you are measuring the asset in terms of fiat currency, but price does not always equate value or worth.
Price is simply the objective current exchange rate for a particular good or service, i.e., what one is required to pay to receive its benefit; but the price itself, although objective, is determined by the subjectively perceived value of an asset’s worth and value.
The more value something has, the greater its worth, meaning that it will command a higher price, since all of these factors are interdependent.
Seasoned veterans in the Bitcoin space have no interest in the fluctuations in the fiat price of bitcoin; that metric is inconsequential to them and poses no relevance because they use a different means of measurement.
Everything is currently denominated in fiat in most people’s minds, but when one begins to shift one’s mindset and starts denominating things in bitcoin terms, and eventually in satoshis, the picture becomes much clearer.
These questions are essentially reflected by one’s time preference: If you have a very high time preference, then you place more emphasis on the present and near-term price action.
When viewed on a long enough time horizon, we can see that bitcoin doesn’t look volatile at all.
Bitcoin is founded on natural law; it is objective truth, governed by the laws of mathematics and physics.
Bitcoin not only offers security, integrity and transportability, but also offers simplicity to its users.
For those who have the fortune of reading this article now and possess courage to enter the new paradigm, they will be rewarded with an explosion in their net worth since they are entering the market at the beginning of the S-curve, taking full advantage of the adoption phase of a technology, where they can sit back and witness Metcalfe’s Law and the Lindy effect play out beautifully.
It is the oasis in the desert, the safe harbor in the storm, the shield against the arrows.