Bitcoin: No Cashflow, No Problem - WiM Weekly
Bitcoin: No Cashflow, No Problem - WiM Weekly
A weekly rundown of new WiM podcast releases and some food for thought
Bitcoin has no cashflow. This is one of the most common reasons why many investors opt for traditional assets like bonds or real estate over Bitcoin. Let's start with the fundamentals: how do bond cash flows work?
Generating ($) Cashflow with Bonds:
Let’s say you buy a 5 year government bond for $10,000 that pays an interest rate of 5% per year.
You invest $10,000 buying the bond.
Each year for 5 years, the government pays you 5% of $10,000, or $500 per year ($2,500 total).
At the end of 5 years, when the bond matures, the government returns the original $10,000 you invested.
In Summary:
Investment: $10,000
Return on Investment: $2,500
Principal + Return: $12,500
The bond investment strategy seemingly worked. What’s the problem?
The dollar is not a stable unit of measure because the total supply is persistently increasing.
For example, let’s imagine you’re trying to measure the length of a table with a ruler. On day one, your ruler is exactly 1 meter long. You measure the table and find that it is 2 meters in length. On day two, however, your ruler shrinks to 0.9 meters. When you use this new, smaller ruler to remeasure the same table, it’s now 2.2 meters long. It only appears as though the table is longer because the ruler shrunk. With this in mind, let’s revisit the bond cashflow example using Bitcoin as our unit of account:
Bond Return with Bitcoin as Unit of Account:
The initial $10,000 bond investment equals 0.167 BTC at today’s Bitcoin price (~$60,000).
Bitcoin’s value (in dollars) has been growing at an average annual rate of return of ~50% over the last decade.
If Bitcoin’s price continues growing at ~50% annually, the $12,500 (after bond maturity) would buy you 0.027 BTC.
Your ROI using the dollar as your unit of account results in a +25% return ($10,000 to $12,500).
Your ROI using Bitcoin as your unit of account results in a -84% return (0.167 BTC to 0.027 BTC).
Broken money has fooled people into perpetually chasing cash flows, creating the illusion that they are growing their wealth.
Money has no cashflow. Bitcoin is sound money that can be held without counterparty or dilution risk. No other tool can match Bitcoin across the monetary properties of scarcity, portability, durability, divisibility, and recognizability. Analyze your finances through the lens of honest money. Study Bitcoin.
This Week:
WiM520 with Aneesh Karve
"We want more civilization, we need more civilization. We don't need people telling the lie that [governments and central planners] somehow have special information that they can decide what the outcome should be. This is the point and the lesson of history: nobody knows. This is an equation with trillions of variables. Everybody's predictions are going to be wrong. They say, 'Well, now there's an unequal distribution of things.' This is a necessity, and it's the only way things can happen. Here's why: not only because profit is the only signal, the objective signal, as to what is working that can coordinate at the level of the extended order, but because you don't know ahead of time which strategy is going to be successful. When the people who happen to employ the successful strategy that leads to a future that causes humanity to survive don't profit from it, we have stopped the process of evolution. We have stopped the process of progress, and we have stopped civilization as we know it." — Aneesh Karve
Link to full episode: The Fatal Conceit: The Errors of Socialism with Aneesh Karve (WiM520)
WiM521 with Robert Breedlove
"This hearkens back to an amazing Carl Jung quote: ‘Until you make the unconscious conscious, it will direct your life, and you will call it fate’ … You've got to make the unconscious conscious. The next time you find yourself mindlessly imitating a mob, especially when that mob is victimizing someone, you should really stop and ask yourself: are you intending to imitate Satan, or are you intending to imitate Christ?" - Robert Breedlove
The full episode with Robert Breedlove will go live today (10/11/24) at 3:00pm EST.
We’ve relaunched the Clips Channel! Subscribe for highlights from episodes and other exclusive content:
We’ve launched a WiM Telegram Community Channel! Join us here to engage with a group of deep thinkers, freedom maximalists, and Bitcoiners:
Next Week:
10/15 with Clint Russell
Clint Russell is a political commentator and the host of “Liberty Lockdown” and the co-host of “The Best Political Show” and “Tower Gang.”
10/18 with Jimmy Song
Jimmy Song is a Bitcoin developer, educator, entrepreneur, and author of: “Programming Bitcoin”, “Thank God for Bitcoin”, and “Fiat Ruins Everything.”
Upcoming Events:
Join me on Jekyll Island and The Farm November 15-18 for an unforgettable experience.
This November 15-18th, 2024 (in what feels like a ‘coming full circle’ of sorts for me) I will be giving a talk on the nature and history of money at the Jekyll Island Club in the exact same room where the now infamous secret meeting was held to found The Fed way back in 1913. Then, we will be doing some fun activities on The Farm!
For those of you that don’t know about The Farm, it is a 1000-acre food, energy, and water independent community 45 minutes northwest of Jacksonville, FL. Words can hardly do justice to the beauty and majesty of The Farm, you’ll just have to come see it for yourself…
Click here to learn more about this event or email Will@okefarm.com today to apply to join us for this once in a lifetime trip!!!
The Art of Alpha Retreat: December 3rd-7th
Join a select group of like-minded men along Mexico's stunning Pacific Coast for a transformative retreat focused on elevating mind, body, and soul. Set in a retreat center designed to train and recalibrate the nervous system, we’ll dive deep into mastering new skills and engaging in high-impact discussions.
TAoA is a call to men seeking a community dedicated to growth, wisdom, health, impact, sovereignty, truth, and love. If you’ve ever felt the need to disconnect, elevate your physical well-being, and explore embodiment practices that cultivate peace amidst life’s chaos, this is your opportunity.
Learn more and apply here: https://www.breedloveevents.com/
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The Farm at Okefenokee (mention BREEDLOVE for $21,000 off a custom cabin): https://okefarm.com/
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Products I Endorse:
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Noble Protein (discount code BREEDLOVE for 15% off): https://nobleorigins.com/
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Colorado Craft Beef (use discount code BREEDLOVE): https://coloradocraftbeef.com/