The Richest Man in Bitcoin - A 7 Step Guide to Wealth - Make Thy Bitcoin Multiply

Lesson #3 - How therefore may we put our gold (Bitcoin) to work?

The Richest Man in Bitcoin - A 7 Step Guide to Wealth - Make Thy Bitcoin Multiply

This Part 3 of a 7 step series applying teachings from the famous book “The Richest Man in Babylon” to Bitcoin as a revolutionary savings technology.

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The third piece of advice given in The Richest Man in Babylon to cure a lean purse is as follows:

“Make thy gold multiply”

This brings us to an interesting intersection when we ask ourselves this question:

What is Money?

Gold has long been recognized as money, but today the average person simply thinks of “currency” as money. In the past, one could deposit gold with a banker, or invest gold into a company - and hope to “earn yield” or receive dividends.

Is the same true for Bitcoin, or are we in the middle of a paradigm shift?

Lets dig in…

Why Fiat is Not “Saved” Anymore - Rather it is Invested

Fiat is unlimited, and its cost of production is nearly ZERO.

When something has no expense to produce, its true value is exactly that. Thus the dollar has continually been degraded, to an extreme since 1971. Its only real “backing” is the collective trust placed in by its user base, and this is rapidly eroding.

Leaving your fiat “money” in the bank is like setting an ice cube on a hot sidewalk in the middle of summer, its not going to last long.

People have thus been on a mission to make thy fiat multiply like never before.

They’ve been forced into speculating on real estate, stocks, bonds, and even garbage cryptocurrencies, all in an effort to maintain their purchasing power.

This has resulted in the (over) financialization of the economy. Instead of “hard work” people have been drawn to speculation, trying to get ahead via the inflation of assets. Thus the economies of Western nations have experienced massive wealth inequality.

With a stable currency, the advice to “make thy gold multiply” is sound, but under the dollar standard, you’re lucky to just maintain your purchasing power - provided you put your money into appreciating assets at the right time.

Bitcoin is Much Different that Fiat Currency

Bitcoin is the discovery of absolute digital scarcity.

It is deflationary money, because of its fixed supply. With a fixed supply of money, goods and services should gradually trend downward in unit price, as the money becomes more distributed and saved (hoarded initially) by its users.

Over the past few years, a few entrepreneurs have built companies revolving around the idea that Bitcoin is similar to fiat, and should earn yield.

The results have been utterly disastrous

Bitcoin is unlike anything we have ever come across, and there are certainly going to be mistakes. But the simple lesson so far is that you must be extremely conservative with an asset that is absolutely scarce.

This means you don’t go looking for “yield”.

You don’t entrust others to hold your Bitcoin for you, and if you f*ck around, you’re gonna find out.

The “multiplying” of your Bitcoin is not in trying to grow the number of units you hold by speculation. The “multiplying” will be had in the careful, conservative care of your Bitcoin - while the network of users around you continues to grow.

How You Make Your Bitcoin Multiply - The Network Effect Does it All For You

The largest factor in “multiplying” your purchasing power with Bitcoin is the network effect that is built into the protocol.

Yes, you should accumulate as much Bitcoin as you can. Buying regularly with 10% of your pay for 10 years is the recommended route. After that, it is just a matter of patience. You have to let the network do the heavy lifting for you.

There is no need to “invest” Bitcoin. The investment comes from millions of people recognizing the same thing that you have: Bitcoin is the solution

Each of these people invest in their own way.

First, they buy and HODL Bitcoin just like you. But many then go on to support the network in their preferred way.

Some write code. Some record audio and make video content about Bitcoin. Some build Bitcoin apps. Some start businesses focused on Bitcoin. Some add Bitcoin to their already existing corporate treasuries. Some work on Bitcoin friendly legislation.

Why do all of these people do these things voluntarily?

Because they all see that THIS matters, far more than anything else out there matters at this point in time. These are the network effects that are so powerful.

By simply buying and holding your own Bitcoin, you tap into the “multiplying” factor that is about to go parabolic.

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