Undoubtedly, fiat millionaires will read the title of this article and laugh. Languishing in mansions with foundations of debt, materialism and the physical world of fiat rich people is deceptively luxurious. Assuredly, the great empires of Rome, Venice and Constantinople also had many rich people enjoying the various splendors of wealth.
Indeed, turkeys live happy lives — until Thanksgiving.
If we can consider the fiat ice cube melting, it would be wise to conceptualize that, until the ice is fully melted, the water feels cold. It isn’t until this ice is melted that the water left behind rapidly warms relative to the temperature of the space the water is in.
This describes the stuffed bank accounts of wealthy Americans across the country. Many believe that they are keeping themselves safe by investing their money into various assets, such as equities and real estate. The problem with these markets is that they fundamentally rely on the currency system that bitcoin works to fix.
The stock market continuously reaches all-time highs because the Federal Reserve maintains low enough interest rates and a liquid enough credit market to keep it afloat. Without this third party injection of funds, the current market conditions would rapidly evaporate.
A stock market crash would eliminate much of the wealth that upper-class Americans enjoy. The difference between poverty and opulence for many is FAANG stocks that carry with them the responsibility of keeping America “rich.”
If You Do Not Buy Bitcoin, You Cannot Be Rich
Rich, as I will define it, is the freedom and ability, as enabled by one’s wealth, to do as one wishes. Perhaps there are people who feel they have enough fiat currency stored to fit in this definition. I wager that if they simply witnessed the shifting sands beneath their castle, they would immediately retract their feeling of freedom and ability.
How can one have freedom with a looming stock market cycle permanently on the horizon? Credit cycles have forced Americans into being okay with programmatic recessions in the economy, despite the drastic ramifications these busts and booms have. How come people continuously pursue real estate as a store of value despite the previous market crash of 2008?
Buying real estate as a store of value right now is like jumping at the end of an elevator falling down its shaft.
You will still be subject to the same crash and burn that all fiat is destined to experience, albeit with the extra padding your 12-inch vertical provided.
The only way to assuredly be rich, to enable one’s freedom and ability to do as one pleases, is to have an immutable noncontrolled computer program as the basis of their money. Only through the decentralized nature of the Bitcoin network can one feel secure in the maintaining of their wealth. Rich, it must be, to entrust one’s entire net worth in the only financial settlement system incapable of liquidity injection.
Inflationary monetary keeps rich people happy, but only in the same sense that alcohol keeps a college student with a paper due that night happy. The deflationary monetary policy of bitcoin is the choice to stay in and study — the safest choice, the secure choice and the smart choice.
It is with the regret of a hangover that wealthy Americans will come to realize their mistakes in ignoring this path of stability.