Alright... let's dig into the first question.
How does Bitcoin compare to other forms of money?
Store of Value - "For the first time, humanity has recourse to a commodity whose supply is strictly limited. No matter how many people use the network, how much its value rises, and how advanced the equipment used to produce it becomes, there can only ever be 21 million Bitcoins in existence... This creates a new type of asset well-suited for playing the store of value role." - Quoted from The Bitcoin Standard - The Decentralized Alternative to Central Banking by Saifedean Ammous. This book is a must-read for everyone.
Portability - Bitcoin is known as money without borders. It is much safer and easier to travel with than cash or gold. It is also more efficient to send and receive Bitcoin than gold or cash.
Divisibility - A common misconception is that you can only buy whole Bitcoins when, in fact, you can buy up to 100,000,000th of a Bitcoin. The smallest unit of a Bitcoin is called a Satoshi. Similar to 100 pennies to a dollar, there are 100,000,000 Satoshis to a Bitcoin. Gold, on the other hand, is harder to break up into smaller units, so it is not an efficient form of money for smaller transactions.
Control - Bitcoin is a decentralized form of money, meaning that the government or companies cannot control the supply or how it is used for transactions. One of our favorite books is so eloquently titled, "Bitcoin: Hard Money you Can't F*ck With" by Jason Williams. Highly recommend giving it a read. In contrast, our current system is centralized, meaning that the government has full control over the supply and policies affecting thier currency. The more money they print, the less it is worth over time. They also took control over gold at one point, forcing everyone to turn in their gold for their fiat dollars. We like money that puts freedom over control.
What could money look like in the future?
Last week, we delved into the topic of Central Bank Digital Currencies (CBDCs) as a reflection of our evolution and the need to expand beyond our existing monetary state. Numerous governments are venturing into diverse digital currencies, viewing the technology behind Bitcoin as a potential rival. The principal distinction here lies in control. Bitcoin represents financial freedom due to its decentralized nature, remaining beyond governmental control or manipulation. In contrast, CBDCs are digital renditions of our existing monetary system, potentially allowing for increased governmental oversight and regulation.
Why is it important to plan for your financial freedom?
The prevailing financial system is facing significant challenges, rendering traditional saving methods increasingly unfeasible. It is essential to channel your hard-earned money into avenues that promise future returns. It's important to consider alternatives, given the government's ability to print more money, while earning it requires considerable effort on our part. Keep in mind that money left in the bank is not entirely under your control; thus, it’s imperative to research and identify alternative options that can secure your retirement and quality of life.