Bit 🐳 Ish on Nostr: I think one major hurdle most people don't truly understand is that Money and Value ...
I think one major hurdle most people don't truly understand is that Money and Value are not the same. One attempts to represent the other.
Long hypothetical incoming but I think its worth the read if you want a framework to help illustrate to normies and arm yourself with another intellectual tool.
I often get asked, how do you know the price of bitcoin will go up if it just sits there and does nothing? It's simple, because the value of bitcoin is ever increasing in a world that's valued using an inflationary money. Let me explain. Follow me on this journey.
To preface, we will be speaking generally. Yes you can find a million exceptions and yes there are a million exceptions. But we have to generalize and boil things down to basics to illustrate the point. Let's go.
The amount of value an item has may differ from one person to another. When determining its calue to me, I might ask myself... do i like meat? Am I hungry? I may value the same burger more or less than the next person. If burger stand owner values it high they'll sell it at a higher cost (money). That determines if it's worth it for me to buy that burger. If the value (to me) of that burger is lower than the cost, I'll buy it.
While the cost of something may fluctuate over time (and with inflation ingrained in our society, everyone can understand that costs naturally go up over time. What they dont truly grasp is why.) Value on the other hand, is somewhat subjective from person to person but all else held equal, the value of something will stay the same for any one person, always (remember I said all else held equal and we're making generalizations here).
Money is simply a representation of value but since value is subjective, money is not always a fixed 1:1 representation of value for every person. That ratio fluctuates from person to person but I generally value a hot dog as much today as I do tomorrow. Yeah I might be more hungry today vs tmrw but I'm not going to ask the hot dog man to sell it cheaper tmrw just cause I'm not as hungry. That's nonesense.
If anything we can assume a hot dog will cost more tmrw because of inflation. The value of that hot dog is still the same. It still eases my hunger, it's still got meat and bread. Value stays the same while costs (money) changes.
Ok enough food examples. Let's talk assets. You with me so far?
The value of the dollar is ever decreasing because of fiat money printing (no one can deny money printing and inflation). Comparing one against the other will always come out with Bitcoin as the winner long term. Again, why?
Imagine this scenario: in a world there exists only three people. One person (A) holds $100k of cash. Another (B) holds 100 bitcoins. And the third person (C) has a house. They live in a closed ecosystem, nothing really changes in this world and don't they don't generate or lose any additional value.
Let's assume the value each person places on each of these 3 things are equal. Because of this, the entirety of what one person owns can be traded against the entirety of what the other person owns.
Time goes on and they're all happy. One day, greed seeps in...
Let's assume the C is an appraiser and arbitrarily decides his house is now worth double. Or he just decides to be greedy and lists his house for $200k. Whatever doesn't matter why. Nothing changes with B, he's just holding his 100 bitcoins.
If A wants to buy C's house he has to double his money! OK let's pretend like A also owns a printer and decides to print another $100k. The Fed makes up their own rules so why can't he?!
Poor Mr. B right? What a sucker. Everyone got double values and hes still holding 100 bitcoins. What a sucker! Wrong.
You see, the value of items don't change when you suddenly apply a different cost to it (generally speaking). A house that's twice as expensive still has the same utility value as that same house just priced differently. The true total resources and net worth of this world never actually changes.
A can now buy C's house for $200k, so he does. Remember, value hasn't changed, only prices (aka money). All 3 items continue to have the same value, but because of greed, the money has doubled and the price of the house has doubled. The intrinsic values still stay the same. A still holds the same value as B holds the same value as C.
Since the true value of the house nor the Bitcoin has changed, B can now exchange his 100 bitcoins for that house. And wait a second, isn't that house now worth $200k (double)? Yes. The price of B's original 100 bitcoins are now worth $200k simply by buying and holding and doing nothing and letting the rest of the world play fiat games. This is what's happening in our current reality at a base level.
Let the greedy fucks play their games. I don't care cause I'm hodling Bitcoin.
This is why Bitcoin will win.
Thanks for listening to my Ted talk. Get home safe. Stack sats.
Long hypothetical incoming but I think its worth the read if you want a framework to help illustrate to normies and arm yourself with another intellectual tool.
I often get asked, how do you know the price of bitcoin will go up if it just sits there and does nothing? It's simple, because the value of bitcoin is ever increasing in a world that's valued using an inflationary money. Let me explain. Follow me on this journey.
To preface, we will be speaking generally. Yes you can find a million exceptions and yes there are a million exceptions. But we have to generalize and boil things down to basics to illustrate the point. Let's go.
The amount of value an item has may differ from one person to another. When determining its calue to me, I might ask myself... do i like meat? Am I hungry? I may value the same burger more or less than the next person. If burger stand owner values it high they'll sell it at a higher cost (money). That determines if it's worth it for me to buy that burger. If the value (to me) of that burger is lower than the cost, I'll buy it.
While the cost of something may fluctuate over time (and with inflation ingrained in our society, everyone can understand that costs naturally go up over time. What they dont truly grasp is why.) Value on the other hand, is somewhat subjective from person to person but all else held equal, the value of something will stay the same for any one person, always (remember I said all else held equal and we're making generalizations here).
Money is simply a representation of value but since value is subjective, money is not always a fixed 1:1 representation of value for every person. That ratio fluctuates from person to person but I generally value a hot dog as much today as I do tomorrow. Yeah I might be more hungry today vs tmrw but I'm not going to ask the hot dog man to sell it cheaper tmrw just cause I'm not as hungry. That's nonesense.
If anything we can assume a hot dog will cost more tmrw because of inflation. The value of that hot dog is still the same. It still eases my hunger, it's still got meat and bread. Value stays the same while costs (money) changes.
Ok enough food examples. Let's talk assets. You with me so far?
The value of the dollar is ever decreasing because of fiat money printing (no one can deny money printing and inflation). Comparing one against the other will always come out with Bitcoin as the winner long term. Again, why?
Imagine this scenario: in a world there exists only three people. One person (A) holds $100k of cash. Another (B) holds 100 bitcoins. And the third person (C) has a house. They live in a closed ecosystem, nothing really changes in this world and don't they don't generate or lose any additional value.
Let's assume the value each person places on each of these 3 things are equal. Because of this, the entirety of what one person owns can be traded against the entirety of what the other person owns.
Time goes on and they're all happy. One day, greed seeps in...
Let's assume the C is an appraiser and arbitrarily decides his house is now worth double. Or he just decides to be greedy and lists his house for $200k. Whatever doesn't matter why. Nothing changes with B, he's just holding his 100 bitcoins.
If A wants to buy C's house he has to double his money! OK let's pretend like A also owns a printer and decides to print another $100k. The Fed makes up their own rules so why can't he?!
Poor Mr. B right? What a sucker. Everyone got double values and hes still holding 100 bitcoins. What a sucker! Wrong.
You see, the value of items don't change when you suddenly apply a different cost to it (generally speaking). A house that's twice as expensive still has the same utility value as that same house just priced differently. The true total resources and net worth of this world never actually changes.
A can now buy C's house for $200k, so he does. Remember, value hasn't changed, only prices (aka money). All 3 items continue to have the same value, but because of greed, the money has doubled and the price of the house has doubled. The intrinsic values still stay the same. A still holds the same value as B holds the same value as C.
Since the true value of the house nor the Bitcoin has changed, B can now exchange his 100 bitcoins for that house. And wait a second, isn't that house now worth $200k (double)? Yes. The price of B's original 100 bitcoins are now worth $200k simply by buying and holding and doing nothing and letting the rest of the world play fiat games. This is what's happening in our current reality at a base level.
Let the greedy fucks play their games. I don't care cause I'm hodling Bitcoin.
This is why Bitcoin will win.
Thanks for listening to my Ted talk. Get home safe. Stack sats.