There are a lot of people on here who know all about Bitcoin, but not many who have good business sense.
Seems to be two spheres that don't really overlap because obsession with saving often represents itself as intellectual sloth and economic apathy.
Saving is the opposite of investing, really. Investing is just a form of spending.
That doesn't mean that saving is bad, as it can be a precursor to investing, but it does mean that investing means _taking risks with money_ . That requires, long-term, a different mentality than saving. Which is why the two habits don't seem to align much.
Yes.
It's always been like that. To the point when money were fucked.
From that point you had to take risk and invest.
or you know... buy bitcoin and save
Often in business over investment, requires large (if not larger) risk of liability. Some people (me) care more about that than losing money.
Well, yeah. I gave up my income for a year, drew down my savings, and gave up having a car, to finance my Nostr efforts, and all I got in return was an increased risk of lawsuits and imprisonment.
I sometimes wonder how crazy I am. Very crazy, apparently. And I wonder how much economic dissonance my brain can handle. A lot, apparently.
Well you're not the only one :) Don't forget where I came from. From one door kicking hobby to another.
When I was customer facing, there is a certain paranoia that can really wear you down, never knowing if any call or email was a legitimate customer or the one they would use on the warrant to kick your door in. It's good for weight loss though XD.
Yeah.
Just sometimes muse over the way Bitcoin inverted the correlation between risk and reward. It has effectively demonetized almost all investment because it rises in purchasing power so fast, and investments take so long, that hardly any investment can recoup the financial opportunity cost, even if the nominal investment is returned with profit, because it needs to at least 10x within 5 years... forever.
I don't think any investment has ever brought such high personal returns, before, except maybe the colonization of a New World. So, settling Mars or something. Or rebuilding Germany and Japan, after WWII. Or Russia invading Ukraine. Territorial conquest is probably the only thing that can compete with Bitcoin's returns, since anything digital has no lasting value.
So, buy-and-hold Bitcoin or annex Canada. 😅
And the thing with Bitcoin is that the threshold for savings is so low (as you can purchase individual sats), and the threshold for investment is now higher than it's ever been. You need to have a certain amount of resources, to even launch an investment capable of beating Bitcoin's returns.
We've already burned through the equivalent of €100k, in man-hours and money, and we haven't even released yet. Meanwhile, Bitcoin blew past us at over 2x and will probably 2x next year and the year after that and the year after that...
It will never end. You can never catch up, even if you grow and grow. The only thing you can do is leverage your investment to buy Bitcoin faster and more efficiently than simply working at a day job. Or invade your neighbor. LOL
That's why I'm thinking that the only smart financial investment, if you don't want to invade Canada, is Saylor-style. Incorporate a real business, take out a corporate loan or issue shares or something, buy Bitcoin, cover running costs and pay back the investors with revenue from the business, repeat. And I think a smart business person can do this more effectively with a business, than an individual can do with their day job. Businesses leverage human potential, especially the potential of groups of humans.
Of course, as you and I know, not all investment is done for merely financial gain. Sometimes people build things because they want those things to exist, more than they want to become rich. There have to be intrinsic human motivators because money is actually a relatively recent invention and humans invested before then, and not merely in their own survival.
what if the USA creates a Canada base company that does whatever, funds it and do the Saylor speculative attack on the canadian dollar x10.
I mean is peanuts to them and could gain a massive leverage to eventually anex Crimea, sorry Canada.
basically a misinterpretation of what you just wrote.
That is why I think the people who think we're stupid, because we don't only "just stack sats, duh" are showing a lack of business sense. Bitcoin means that investments no longer have to bring returns _greater than Bitcoin_, they just have to somehow raise your personal Bitcoin-acquisition potential or lower your running costs dramatically, or some combination of the two.
My personal investment, last year, did not net me more than Bitcoin's price increase YoY, but it dramatically raised my ability to purchase Bitcoin, going forward. Bitcoin is cheaper to me, now, at €100k, than it was at €35k, because my purchasing power and liquidity rose so dramatically, so I'm stacking more and faster, than at the lower price. If I play my cards right, it will look even cheaper to me at €1 million, than at €100k.
This is the new investing-return measure:
Can you increase your ability to stack sats faster than the Bitcoin rise in purchasing power?
in the future, you will be happy to break even in bitcoin terms. we are lucky to be able to "purchase" it.
I am glad I was able to read the whole thing because until the last note I was thinking you’ll forget THE ONE THING why investing in a new business might ever outperform Bitcoin’s gainz.
And that’s exactly the rise in income. And that’s why you don’t have to worry about it and there still be people starting new business just because it can improve their chances to acquire more Bitcoin.
Anyway, well put.
Interesting take, makes sense 👍
What was the investment that dramatically raised your ability to purchase BTC?
I invested in my personal skill base, using the project, and got a job earning twice what I was earning before, in full-time homeoffice, so that I didn't need a car.
And then I took the extra time I won, by doing that, and we completed the renovation and move of three houses ourselves, and now I pay no rent and have significantly lower running costs.
Sounds like a lot of risk and a lot of work, and I'm glad it paid off.
I've got to pull a similar manuever soon
Just ice and snow here. Canada is Portuguese ‘Ca nada’ meaning ‘Here, nothing.’
Saving = precondition for investment
Investment = smart spending
Smart spending = max. return
You’re right.
Yes this is right 👍
Completely different skillsets!
I’m horrible at making money. Thankfully I know what money is so it balances out.
true, the real superpower comes when cash flow positive business + btc saving. that business is able to do things and compete on a different plain with debt serviceing-enslaved competitkrs. but you have to be able to get cash flow positive against competitors that will use whatever debt they can get to crowd you out in the short term.
I know a bit about both.
Bitcoin stopped me investing in businesses 😂
saving is how a free market expresses net profit, milady
it can only happen with a hard currency, and a growing economy
people are saving in bitcoin because it's a hard currency, and the economy is growing, so their purchasing power goes up, so they keep saving
idk if you have looked around you lately but the cost of risking your savings on enterprise is pretty high, between VAT and this regulation and that tarriff idk what to say
there's this thing called "scale of preferences" where you do the thing that is least painful
right now, in an anti-business environment like the very one you are living in, saving in a hard currency is exactly what people do
Ludwig von Mises figured this all out and wrote this book Human Action and he did this from what he saw unfold in the events between Weimar and the Great Depression - first he condemned socialism for enabling this, and then he condemned fiat currency for enabling the bankers and politicians to destroy the ability to do economic calculation
if bitcoin purchasing power was not rising, people would stop hodling and start businesses (assuming a business friendly environment) and also, this is a good place to point out this is why so many bitcoiners have left toxic socialist jurisdictions like germany and USA for less high tax jurisdictions like, idk, Georgia, Kazakhstan, Chad and Nigeria because that's how bad it's got these days
you REALLY need to read some Mises, just sayin
Bitcoin's purchasing power is going up due to scarcity, not an expanding economy.
ok so why is it so much better to save bitcoin than gold if that's all it is?
a lot more gold bugs and gold acceptoors out there than for bitcoin, a lot lot lot more
if scarcity was the only factor in the equation then bitcoin would not be outpacing inflation unlike everything else, which is not
i really can't begin to emphasize unduly how much you really need to read Ludwig von Mises Human Action, like, already
i read it twice, what's your excuse?
Satoshi read it at least once also, and so did RossUlbricht
You should read Leibnitz, Aristotle, and Euclid. And St. Hildegard.
It's digital and has absolute scarcity and mathematical issuance. The prices goes up because of supply squeezes.
so are you merely jealous that you didn't buy it earlier or is there some other reason why you are salty about bitcoiners who were right about it a long time ago and stuck to that and now are ahead of you, or what?
because that's what it sounds like every time i hear you talk like this
bitcoin has the highest liquidity of any hard asset of all history, that's the whole point
I am saying, that only such people that are not motivated primarily by money, now have any reason to invest, as no investment can ever beat Bitcoin's performance in the mid-term.
A friend sent this to me, you might appreciate it.
