/biz/ - Business & Finance

Bitcoin has revealed the greatest capital misallocation in human history. If you hold traditional finance products, you are fucked.

"You want to invest your money and watch it grow" - Its a saying as old as time, but why? Why do I want my money to grow?

What is the single biggest driver of investment? Inflation.

Since the abandonment of the gold standard, investments no longer occur naturally, out of a mutually beneficial interest in a company who you believe to generate return on your capital in excess of the cash rate. Investments are now a requirement for every single person. If you choose to not invest, you will watch the capital you have worked so hard to accrue evaporate from inflation over time. The entire population is in a race to avoid inflation by throwing every cent spare into the markets.

So what happens to the price of stocks if inflation ceased? They crash. hard. harder than you could ever imagine. There is no longer a requirement for you to invest and expose yourself to risk. You could hold your cash knowing it retains its value, risk-free.

This is race to avoid inflation is the greatest capital misallocation in history, and there was never an alternate option until now. Until Bitcoin.

Those of you left in the traditional capital markets will be wiped out almost completely. You hold stocks nobody truly wants, but is forced to hold lest their capital evaporates.

You are all buying the absolute top of the absolute top of the absolutely top of the greatest fucking mistake human finance has ever created.

Buy and hold BTC. Do not be the last people holding these bags when the big players move across to the BTC standard.

Is understanding that people who accept btc as both currency and a store of value are immediately more powerful and more free than those who do not.