BWJ 012: Leveraging Deep Expertise; Predicting Purchasing Power; Money Is Time; and more.
This week: What is so exciting about making new friends? What models can we employ to decipher value? Why is it important to understand true wealth?
Leveraging Deep Expertise
What is so exciting about making new friends?
This week I made a new twitter friend, James Lavish, who typifies what I love about learning out in the open. He was a hedge fund trader, has been investing for 25 years, and is openly sharing his investment thesis on Bitcoin.
The ability to leverage deep expertise, to the benefit of one’s investment decisions, is a proliferating modern miracle. Never before has so much talent been willing and able to share information, which is accessible, and digestible.
I particularly like his risk and reward analysis of Bitcoin, in which he concludes: “BTC is the single best investment opportunity in crypto today”. Not to be negative, but there are always risks, so getting the perspective of a skilled investor is very valuable. I look forward to learning more from James…
Predicting Purchasing Power
What models can we employ to decipher value?
“All models are wrong, some are useful, most are dangerous”, although not intentionally, was probably my biggest takeaway from this discussion between Robert Breedlove and James of Invest Answers. It is a timely reminder that none of us can see into the future, regardless of how complex and advanced our analysis might be, tempering the hype of some predictions made to date.
That’s not to say there wasn’t huge value to be gained from the analysis shared however, of which I particularly liked the historical reference to hyperinflation in France between 1790 and 1795, as a potential cadence predictor for todays money printing policies. Just how much modern central banks will debase their currencies is anyone’s guess, but there’s no doubt it will hugely effect the future price of Bitcoin, hence as their conversation states it’s important to monitor purchasing power as well as price.
We’re left with a pertinent question: what metric can we use to value Bitcoins purchasing power against? There are multiple contenders, which are a discussion for another time, but in the meantime check out the Bitbo dashboard for inspiration.
Money Is Time
Why is it important to understand true wealth?
If you’ve only got 2 minutes of attention left for this weeks newsletter, watch this video, in which Anthony Pompliano explains: “Why true wealth is measured in how much time you have.” It’s an amusing take on his favorite movie, “In Time”, which depicts a world with people literally fighting against the clock to survive.
The fact rich people have time, whilst poor people do not have time, he points out is wonderfully highlighted by the lower classes having to run everywhere. Of course the parallels to the world in which we find ourselves are palpable, with a tiny fraction of our society in control of most assets, whilst the lower classes are forced to exchange their time for a currency which is being debased.
It will come as no surprise to you that I believe Bitcoin fixes this, due to its design, enabling users to save the earnings from their time more effectively. I expect adopters of this technology, the deflationary asset that it is, to be truly wealthy in due course…
Highly recommend:
Listen: “Bitcoin Privacy” with Matt Odell and Preston Pysh
Read: “The big Bang to End all Cycles- Part 2-The long term Debt cycle” by Luke Mikic
Watch: “The Bullish Case For Bitcoin” with Vijay Boyapati and Natalie Brunnel
We’re So Bloody Early
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