Alec Torelli
Alec Torelli 5 minutes reading from general

How to Separate Legitimacy from Bitcoin

At Thanksgiving dinner tonight, people naturally asked me about how I was doing with crypto.

They heard about some dude who they compared to Bernie Madoff, and how crypto was rekt.

Here's what I told them...

2/ First, I explained that what happened had nothing to do with the decentralized blockchain that is Bitcoin, but rather a centralized entity who happen to be operating a service for people in crypto.

I reminded them that this was a flaw of humans, not code.

3/ I then had to consolidate my thousands of hours of research to explain how Bitcoin was different than all other cryptos, and basically that digital scarcity was a onetime discovery whose security and network effect cannot be copied.

It's a 0 to 1 invention.

4/ "But isn't it too late for Bitcoin?" she asked.

The sticking point came when I explained a brief history of gold's path to becoming global money, which took over 2,000 years, and then explained how Bitcoin was going to disrupt gold perhaps in the span of 50.

5/ I explained how Bitcoin allowed people to defer consumption to buy more tomorrow than they can today, as technology is naturally deflationary.

To illustrate this, I pulled out my iPhone and asked her to imagine buying this 30 years ago.

6/ You can't of course, yet the phone in one's pocket is more powerful than the best technology the president of the free world had at his disposal in the 1980's.

With fiat, you don't have that luxury.

7/ That's because your currency is being debased every year due to the supply of money being controlled by a private, centralized entity called the "Federal Reserve", which, ironically, is not federal and has no reserves.

8/ The fact that you're incentivized to speculate on assets to preserve purchasing power skews the incentives of free market actors like you.

Instead of simply earning money and saving, you have to essentially buy shit and 'invest' to save.

That's why you own stocks and RE.

9/ On a Bitcoin standard, you can defer consumption today to purchase more tomorrow. You won't have to invest in stocks or real estate, or speculate on start ups because you can simply save to preserve your wealth.

This is the power of Bitcoin.

10/ It seemed to click, at which point she agreed to read the Bitcoin whitepaper and The Bitcoin Standard by @saifedean

"So you're saying if I want to preserve wealth for my kids and grandkids I should buy Bitcoin?"

11/ I'm saying you should spend as much time as it takes to learn about Bitcoin and buy to the proportion of your conviction.

I can't tell you whether to buy, only that I'm highly confident it will be worth your time to learn about it.

12/ Her son asked about NFTs and we chatted briefly about alt coins, and I told them the same thing I tell everyone which is that for 97% of people, I'm extremely confident the best strategy is simply to buy and hold Bitcoin in cold storage, continue to add, and never sell.

13/ The conversation ended and three people left inspired to read the Bitcoin white paper.

As an aside, my mom pulled out a crystal and we each held it and shared something we were grateful for. It was an awesome experience and brought us all closer.

14/ I hope you all had a great Thanksgiving and could share something awesome with your family.

Hopefully you didn't shill JPEG's at the top last year and get everyone rekt, lol :)

This post is based on this twitter thread.

Comments

Please login to comment.