THE NEW AND FAIR WEALTH MAGNET
The biggest wealth transfer in human history is happening before our eyes
As you may know already by reading my articles, our credit based financial system is a giant Ponzi scheme that is reaching its limit.
At this point we are seeing every type of clown world expression. In culture, in the news, in the professional spectrum, and among others. All of this of course because of the devaluation of currency. Because when currency lose its value, all the society exchanging that currency lose its value too. The value of the culture, the food, the morals, the health and every aspect of the society.
Since 1971 currencies are no longer stores of value, only mediums of exchange, so in order to store value the capital owners started going more into alternatives like real estate, bonds, stocks, and gold.
We’ve seen a great expansion of credit since then when every restriction to the amount of currency necessary for “reserve” was defiantly ended. Since then stores of value took the role of money to serve as saving alternatives but apart from them they were not meant to be.
Since 2008 humankind has had a better option but of course it took its process to go from an idea in the mind of an individual or group to turn into a trillion dollar global protocol. Many things happened in between, creation and destruction in exchanges, global powers prohibiting it, among others.
But during the last bull market of 2020-2021 bitcoin entered a new phase of nation state adoption and corporate balance sheet preservation and growth. In the beginning of 2024 the biggest asset manager on earth launched the first spot bitcoin ETF after 10 years of resistance from the financial regulation agencies.
Bitcoin is now a legitimate form of digital gold and if you don't see this at this point you better start paying attention.
The everything Bubble
When we talk about the “Everything Bubble” we have to understand that the bubble is mainly in the denominator: the US dollar, that is melting like an ice under the sun because the United States is running multiple trillions dollar deficits.
Because of this fact every kind of security traded in US dollars it's been inflated against the dollar, taking the US bond and stock market to “dangerous” levels we could argue. This is only if you measure things with the fiat glasses, as we will see.
In the other hand, If you change your perspective and you measure everything against gold the ancient money and ultimate legitimized global standard of value, we can tell a different story.
But if you put your hard money, best ever invented technology glasses you can see a whole different scenario where you can realize how the wealth transfer is happening right now, right here, and it's been happening very clearly for at least the last four years.
Even do four is an arbitrary time, but I choose this timeframe because this topic has been close enough to the public opinion for curious researchers that could have discovered this fact. Such as me for example
We will start with the fiat glasses or the green perspective. Since 1971 the value of the dollar is not pledged to gold any more so we cannot use it as a standard / measure of value because it’s constantly losing purchasing power.
As we can see the price of gold increased 60 times or around 7,000%. In the case of the Dow Jones index we can see it went up 4,400% or 37,7 times. This means that gold won against the stock index and you have to remember these are fiat gains, fiat being a synonym of fake. Because one ounce of gold will always be the equivalent to one ounce of gold.
So in order to calculate the value of something we have to measure the value of something against another thing. Currencies are not good measures of value anymore since then.
I like to say that you can price things in currencies but you cannot value things in currencies. You need a standard of value to measure the value of things and that’s why we had a global gold standard for the century from 1871-1971.
When we measure something against gold you can really appreciate the value you can lift the veil of the fiat lie. The dollar is a liar because it does not have any real substance backing it or fixing its value, it's just a worthless central bank promissory note.
Gold Bugs such as Peter Shift or Mike Maloney have very good reasons to distrust the dollar hegemony and to warn the public about its imminent ending. The craziest part is that they among others have been doing that for at least the past 15 years.
It’s obvious to me that there’s a great awakening happening about the flawed and crooked fractional reserve banking system. I’ll argue that it started during the 90s with the “redemptionist” movement, then Ron Paul and of course after the great financial crisis of 2008 it started to get more mainstream. Here’s the same two charts measured in gold.
The first chart is the price of gold inverted, so it's the price of the dollar against gold: It’s real value. We can see it lost 98% since we abandoned the gold standard. In the same period of time the Dow Jones index lost 33% of its value against gold.
But there’s still more. Since 2020 everything changed, the craziness of the pandemic and its monetary response from governments and central banks was with no precedents. The amount of people paying attention and pointing their fingers to the correct courses warning others was inspiring and it gives hope to many of us tired of this fucking broken money.
So since this was only 4 years ago I will take it as the starting point to measure and illustrate the conclusion given in this post: Bitcoin is the new wealth magnet.
It took 54 years for the dollar to lose 98% of its value against gold. Gold lost 84% of its value against bitcoin in 4 years! This means that bitcoin growed x6,25 or 725% against gold and x5,88 or 688% against the stock index. Again, this was in just 4 years!
I'm giving you the orange glasses so you can see how the biggest wealth transfer is happening before our eyes and what we can do to take max advantage of it.
The Bitcoin Standard
Being bitcoin already the global monetary system we have to measure everything against it. We have to understand it is the new standard of value. When a better form of money enters the scene those who don't hold it are losing against it and those who hold it are earning the difference: it's a zero sum game.
I believe the first thing to shift your life and decisions in accordance with the Bitcoin Standard is to start pricing everything against bitcoin and calculating the opportunity cost of spending your bitcoin measured in time / energy units.
Bitcoin is money, money is a technology to store, exchange and measure value. Our most valuable assets are our time and energy. Money is a way to store our time and energy. Bitcoin is indeed the cheapest way to buy the future since it is the best way to protect the value of your time and it’s baked by energy.
First you have to understand that bitcoin has been blackmailed for more than a decade because banks, corporations and asset managers cannot steal your wealth through it. These kinds of guys love retirement accounts, fixed income instruments, hedge funds and stocks but why? Because they can literally steal your wealth through them and on top of that they charge you a percentage for the privilege of “managing your wealth”.
At this point we know almost every government on earth is virtually broke and every retirement program is an inverted pyramid impossible to sustain. The only things the government can do and are doing is monetizing the debt and paying their new liabilities with future liabilities. Paying their debt with debt thus stealing the purchasing power of the currency in which those debts are denominated.
Gold bugs see this easily; you only have to take the value of a currency and divide it by gold. Let’s see the three most important global currencies.
Since 2020 the most important fiat currencies against gold:
Dollar -40%
Euro -45%
Libra -45%
Yuan -45%
Yen -60%
All we have to do to see the purchasing power of the dollar against gold is to invert the gold chart. At the beginning of 2020 one oz was priced at $1550 now is $2617. The dollar lost 40% of its value from January 2020 to this moment. This means that if you don't growed your savings by 40% you will have lost wealth. We are closer to the truth now that we have the gold bug glasses on.
But let's go back to the bitcoiner glasses to measure the value of this same fiat currencies against bitcoin and you’ll understand why bitcoiners hate fiat currencies so much:
Since 2020 the most important fiat currencies against bitcoin.
Dollar -91,38%
Euro -93,9%
Libra -93,3%
Yuan -93,4%
Yen -95,5%
As you can see every fiat currency is a full speed melting ice against bitcoin losing more than 90% of its value in 4 years. And we are talking about the biggest and most robust and accepted global currencies. If we take currency from developing countries like Argentina we can see numbers like -99% or -99,9%. This means the government and the banks are stealing the purchasing power of the currency, thus ripping the workers and their savings.
The biggest wealth transfer in human history
So the conclusion is obvious. This next decade will continue developing the biggest wealth transfer in human history. Bitcoin is literally a wealth eating pacman. It will start with the fiat currencies, the mediums of exchange, but it will not stop there, because bitcoin is not just a currency.
Bitcoin will also capture capital from the stores of value that people use to preserve their wealth. Bitcoin is a superior form of private property with no counterparty risk, that you can truly own and control and that it can not be created in unlimited amounts like every other type of security or commodity.
This is the very key to understanding its giant potential. The fact that you cannot create more bitcoin creates a scenario where the only way out is for the purchasing power of bitcoin to go up against any other security, commodity or thing whose supply can be inflated. You can always print more fiat currencies, print more bonds, build more real estate, issue more stocks or mine more gold, but you can never create more than 21.000.000 bitcoin.
The global reserve currency
Bitcoin is now the top 14 most important currencies in the world by market cap and it's on its way to become the first one and most important one of all time. Bitcoin is set to become the global reserve currency in the world that every country will use to save their extra production and to buy goods and services from other nations. This is just common sense.
The dollar standard is naturally flawed since it gives the United States the privilege to run deficits allowing it to spend more of what it produces. Under a bitcoin standard nations can only consume if they produce and all of them will be playing under the same set of rules with no privileges.
The global medium of exchange
Bitcoin is not only going to be a reserve currency but the most globally accepted payment settlement layer, since its ledger is public and we don't have to trust a third party to do commerce, global commerce will be made easier and more fair under the bitcoin standard.
Bookkeeping fraud and deficit spending are not possible under the bitcoin standard. And if this was not enough transactions are cheap, super fast and settle in the moment like if we were using cash.
This is different from credit where we need a thor party to verify, that will charge us, and in whom we have to trust and wait in order to do the bookkeeping.
The global standard of value
Another of the great advantages of the bitcoin standard is that it will create a global standard of value for energy. This along with other technologies, like renewable energy, artificial intelligence, IA, agro robots and others will open the doors to a much more efficient and delationary commerce. Opening the doors of abundance for those with low time preference.
Energy is the key to the functioning of civilization. The fact that bitcoin is backed by energy and that incentivized the production of cheapest / cleanest energy every time opens the door to a hyper-deflation in energy prices.
Sooner or later this hyper-deflation in energy prices will be translated to the cost of every product and service making them more accessible to the public.
This same set of rules will put nations to compete against each other in what we defined as the Has Wars. This is a total pacific and evolutionary war to show which nation has more energy prosecutions capacity. Every State should have a team specialized in Renewable energy, Bitcoin and artificial intelligence working to produce and put into work as much energy as possible to produce as much bitcoin as possible.
This scenario is positioning humanity close to a quantum jump of evolution like we have never seen before and how fast this development will depend on us working together, and working smarter instead of harder.
The New World Order
This is the New World order. A decentralized world order with sovereign individual and sovereign states, not with one world government telling us how to live, what to consume and controlling the access to energy or taxing us for its use.
This is what the banksters and the global mafias don't want you to know: There’s a direct connection between energy and money. The more energy you produce the more money you can get. Energy is currency and now with bitcoin you can monetize that energy instead of going to the international bankers for fake credit units that they create out of thin air and “lend us” with a big list of terms and conditions plus pleading our resources as collateral.
The key for this critical path is to expand the education sphere. We need more intellectuals reading about these topics, making questions, using their imagination and creativity to develop solutions on top of this protocol or interacting with it to make the best out of it.
Wasting time with shitcoins it's literally retarded. We are going through the biggest wealth transfer in human history, that also represents a great awakening of humanity and a quantum jump in evolution. If you think this is “old tech”, “too expensive”, “too slow” and you prefer to be plating with centralized securities you may be literally retarded.
Focus on your craft, earn, save and spend in bitcoin.
Fix the money, fix the world.
Thank you Satoshi.
Fuck banks.
The End.