The Case For Bitcoin!
Bitcoin is digital gold. There are only 21 million Bitcoins that will ever exist. Fiat currency is infinite where Bitcoin is finite. Global central banks will continue to devalue local fiat currency in order to enable their governments to spend in excess of what their tax base can afford.
Inflation aka currency devaluation is built into the Keynesians economic regime that we live under. Modern Monetary Theory believes that government deficit spending is needed in order order to prop up a countries economy. This has lead to a global debt bubble the size of nothing ever seen before causing disruptions and volatility in global Financial markets.
Sound money is your only salvation when everything begins to roll over. No one can predict exactly when this will be. Currently the USA has a debt to GDP ratio of 136%. This is still manageable with current tax revenues of $4.4 trillion.
However, developed nations like Japan are a great case study for this. The YEN has been rapidly devaluing in order for the Japanese government to pay their debts. This has reeked havoc on the people of Japan who have watched the purchasing power of their retirement savings get decimated.
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Another example is the Roman Empire which fell due to a military that expanded to quickly into new territories at increased cost the government. This forced the government to devalue the currency by putting less rare metals into the coins. A hidden form of inflation. When the troops realized there was mass defection and desertion that left the home land more susceptible to attack from abroad.
The US Dollar is the world reserve currency. This means the USA can print dollars to pay any debt we have. However, this creates currency devaluation that steals the purchasing power of your dollar. Bitcoin (and gold) are how you protect your self from poverty in retirement.
I believe that Bitcoin has some advantages that Gold does not. Transporting and sending gold around the world is costly and dangerous. The people of the world are adopting Bitcoin in place of gold as it is easier to flee a country experiencing hyperinflation with Bitcoin than it is with gold. 24 words in your head or securely written down can help you get to safety with your wealth in tact.
I believe that Bitcoin will have a market cap equal to or greater than Bitcoin in the future. Currently gold has market cap of $16 Trillion Dollars. If you take $16 Trillion and divide by 21 million Bitcoins you get a per coin price of $762,000. As of writing this, Bitcoin trades at $60k per coin. (8/12/2024) This represents Significant upside for Bitcoin.
There is a case to be made that Gold and Bitcoin could reach a $100 Trillion Dollar market cap in the future. Currently the USA has over $100 trillion in unfunded liability's and global debt has reached
$900 Trillion.
Gold and Bitcoin have a place in every diversified portfolio. We can help you determine the best allocation for you. Bitcoin is an asset that you should accumulate daily for a life time. Then you never sell and barrow against the asset and write the colaterlized loan interest off your taxes.
When you pass away you transfer the 24 word seed phase to your children and their cost basis becomes the price of Bitcoin on the day you pass. (Stepped Up Cost Basis Tax Exemption) This is how you build generational wealth.