BWJ 022: Canadian Government Overreach; Bitcoin As Collateral; Risk Trader Insights; and more.
This week: Why do the latest actions of Trudeau’s leadership reveal weakness? What financing model will be used in future investments for Bitcoiners? How can we protect ourselves against the collapse
Canadian Government Overreach
Why do the latest actions of Trudeau’s leadership reveal weakness?
WTF is going on in Canada!?!? Whilst some have been describing the latest events there as the “best advert for Bitcoin possible”, which I agree with, I am shocked to the core by such blatantly aggressive tactics. Should a government possess the ability to freeze the bank account of people speaking out against them? At what point does the international community need to speak up against Trudeau? Isn’t political discord a human right and key to freedom of speech?
Critically there was a story that caught my eye, in which a Canadian self-custodial Bitcoin wallet Nunchuk, was ordered to freeze client accounts. Their response was wonderful, a much needed boost for the freedom fighters out there, highlighting that “by design” they were simply unable to perform as the Government requests.
Not only does it reveal the strengths of Bitcoin for the individual, as a way to store their wealth outside the conventional system, but also reveals how poorly informed the Canadian Government is. Make no mistake, the trend towards authoritarian governance in liberal western democracies has been set, but these forces simply don’t understand the empowering nature of Bitcoin.
Bitcoin As Collateral
What financing model will be used in future investments for Bitcoiners?
Mark Moss take a bow! If you’re looking for financial freedom education, combined with an appetite for dissecting difficult subjects, then you search is over. Here he explains “How I am Preparing For The Great Reset by Buying a Ranch”, which may seem extreme, but in conclusion is absolutely rational.
Importantly he puts the chance of needing a piece of land, which his family could use to become self-sufficient, at around 15%. Although this is low, in the emergency scenario in which you do need it, it would be priceless.
Of particular note was how he financed the project, which highlights the beauty of owning a deflationary digital asset, and gives us an exciting sneak preview into the future. He took an 8% loan against some Bitcoin with Coinbase, which was used as the initial deposit on the ranch, then went to the traditional lending market and secured a 30 year mortgage at 3%.
Risk Trader Insights
How can we protect ourselves against the collapse of fiat currencies?
As you will have realised, I love leveraging other people’s deep expertise, to help make better decisions. James Lavish makes the case here for allocating 1% of one’s net wealth to Bitcoin, through the lens of a ‘Tail Risks’ insurance policy, to protect against extremely unlikely but catastrophic negative events.
Specifically he is referring to the all out collapse of fiat currencies, which if history can teach us anything, is a discussion of ‘when’ not ‘if’. So is it not prudent to take heed of this advice? Absolutely! Equally it’s potentially a great way to persuade a friend or family member, if they needed one more push, to get on and make a Bitcoin allocation.
Of course I hope we don’t see an all out collapse of fiat currencies in the near-term, as the social upheaval as a result, would likely result in many unnecessary deaths. Rather I would prefer the Bitcoin eco-system be allowed to mature further, ensuring a smooth process, when the time eventually arrives for a full adoption of a Bitcoin standard.
We’re So Bloody Early
Listen to the inspirational story of Zach Wildes