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rajatsonifnance / Rajat Soni, CFA
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2024-04-24 08:08:29

rajatsonifnance on Nostr: Have you noticed how many people are gamblers now? Sports betting, casinos, 0 days to ...

Have you noticed how many people are gamblers now?

Sports betting, casinos, 0 days to expiry options, futures, etc.

Fiat currencies make everyone want to gamble because the wealth they accumulated is quickly decaying and will trend toward 0 FOREVER.

Anyone with savings must make sure that their money multiplies quickly before it's gone forever.

If you have a basic understanding of finance, you realize that you can make a bit more than inflation by risking everything on the stock market or buying houses, because both will go up forever, right?

The issue is that both of these methods of savings are negative sum games that extract wealth from society and move wealth to the financial industry.

You can buy a house (decrease the supply of houses available to people who want to buy a home to live in) and then you can rent it out to someone at the current market rate (which would be a lot lower if you didn't buy the house in the first place - fewer people being able to own a home means higher demand for rentals).

You can buy stocks, get a dividend each year from the profits your companies make, and retire happy.

The problem:

When you invest in the legacy system, you are unintentionally profiting from the current wealth gap, and banks and financial institutions take a cut EVERY SINGLE YEAR. They charge you fees, interest, etc.

How do companies like Walmart and McDonald's keep providing cheap goods and services without exploiting workers? They wouldn't be profitable if they had to pay a wage that employees could live on.

People are figuring out that putting in the time and hard work at a job paying minimum wage isn't worth it because you're paid in a currency that can be printed at will.

Over time, Walmart and McDonald's can find fewer people who are willing to earn a couple of dollars an hour.

When the employees run out, we move to lower-quality products and pay $20 for a burger made of 3d printed meat.

The masses are no longer interested in being exploited.

More people are living in their cars because they can't afford rent.

More people are learning to cook at home because going out to eat is unaffordable.

You can't squeeze the middle and lower classes forever - society starts collapsing.

Is it worth working at McDonald's or Walmart if you understand how the internet works and you're willing to start some kind of business?

Not at all.

This is where gambling comes in.

Most people AREN'T willing to start a business, but they still want to get rich quickly.

Participating in the housing market is a gamble. Buying stocks is a gamble.

Most people are buying index funds but they don't even know what they're buying anymore. They buy houses because they think everyone wants to live in the West.

They KNOW that if they keep dollars, they will have nothing a few decades from now.

They don't see the risks associated with investing in legacy assets because everyone else is doing it.

The pandemic and lockdowns broke the old system. Now EVERYONE wants to get rich by owning real estate and stocks because that's all we saw happening on social media. Fewer people want to work jobs and add value.

At the same time, some workers have started producing value and selling it on the internet. They don't need employers to pay them minimum wage.

What happens if companies like McDonald's can't make a profit anymore because they can't find workers to exploit?

What happens to the housing market in the US and Canada when newer generations stop caring about owning a home because it's so out of reach?

Most people don't see "investing" as a gamble because it's always worked out in the past.

I think the next 20-30 years will be very different.

When you put all your savings in assets controlled in some way by government regulation, you put yourself at risk of losing everything.

The solution to all of this:

STUDY #BITCOIN
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