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Dear Jen and Matt,

Once we think about Independence Day this season I was inspired to create this letter. If youre likely to put your daily life savings into a thing that will hold its value energy across time and space it can help to understand your alternatives.

You can think about each hour of one’s labor your time as having been traded for U.S. dollars once you work. So youre storing your labor in U.S. dollars. Everything else being equal, easily work one hour and Im in a position to save the amount of money I was covered that hour, I’d like that money to help keep its value as time passes for later spending.

CEO of NY Digital Investment Group, Ross Stevens, calls the amount of money you trade for the task you do as your daily life force. I wish to save my entire life force or my parents life force for spending or buying those ideas I value most. EASILY wait per year or two or ten to invest it, I’d like it to carry value throughout that time frame.

U.S. dollars do this very poorly.

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Our labor may also be viewed as a type of energy that we frequently store by means of money. Whatever stores and preserves that energy surpasses whatever leaks or dissipates energy. A thing that holds 99% of its value as time passes is better than a thing that loses its value by 5-10% each year.

This is actually the basic dilemma which all workers face today atlanta divorce attorneys country.Every fiat currency on the planet has been inflated to zero that is another method of saying its leaking energy. Its also our government and central bankers quietly robbing us of our life force or energy whenever they flood the system with an increase of dollars without anyone realizing thats what theyre doing.

So energetically what exactly are your alternatives?

Option 1:

It is possible to hold your time or life force or savings in fiat currency just like the U.S. dollar. At this time the interest paid on U.S. dollars is actually zero and the true interest is double-digit negative considering the current degree of the Federal Reserves money printing. Which means in the event that you had $10,000 in your bank on January 1, 2020 and you also didnt spend some of it but only considered all the things you can buy with it, that same $10,000 has less purchasing power today, meaning now you can buy way less together with your $10,000 than you might have in 2020.

In the event that you get back to the creation of the Fed in 1913 you understand that storing your daily life force in U.S. dollars is quite inefficient. Due to inflation, one U.S. dollar today has lost about 98% of its purchasing power because the Fed was made.

However, that doesnt ensure it is personal enough to totally grasp how undesirable that is. Stated with regards to life energy or life force, this means the Fed and our government has stolen 98% of the life span force or energy made by workers since 1913. Governments and central bankers are horrible allocators of capital and particularly poor at preserving our life energy across time and space. So when bad as that sounds, you can find central bankers and governments in other areas of the globe which are far worse than ours.

Option 2:

Another option would be to commit in companies like Apple, Google, Facebook or Netflix hoping that they upsurge in value faster compared to the Fed devalues or debases the U.S. dollar. Which means we must gamble with this life force. At this time, probably the most sophisticated investors on the planet will tell you we have been experiencing asset inflation due to the Feds inflationary monetary policy. Which means more folks are taking their life energy or life force and investing it (gambling really) in the currency markets in hopes it’ll keep pace with the currency debasement. It has become particularly visible to a lot more people since March of 2020. However, what folks dont realize concerning this strategy could it be requires one to put your daily life energy at risk to be able to preserve its buying power as time passes. Looked after treats our most vulnerable (people that have no wealth) worse than those people who have money to get.

Option 3:

You can even invest your cash, life energy or life force in commodities like gold or silver. Due to its relative scarcity, the inflation rate of gold is approximately 2% per year. Which means that over a 25-year timeframe it has lost 50% of its value. Far better at storing energy compared to the U.S. dollar but nonetheless not very impressive. Property is another option for storing monetary energy which Ill reveal separately in another letter.

Option 4:

Today you’ve got a fourth option that’s orders of magnitude much better than anything before it: bitcoin.

Money IS REALLY A Battery

Perhaps an easier way to take into account money as energy would be to consider a day to day analogy that people understand all too well: the battery inside our cellular phone or tablet computer. Im sure the majority of us prefer a cellular phone with an extended battery life for exactly the same reason I favor a monetary unit which has a long battery life. A thing that stores energy (purchasing power) and it has almost no leakage as time passes is a lot more desirable as money than a thing that loses its charge (value) quickly.

EASILY store my entire life energy in the Argentinian peso, its energy will deplete by 50% in a single year thereby making saving for retirement mission impossible. Storing my entire life energy in the U.S. dollar is obviously better storing it in the Argentinian peso. However, we have been surviving in an age where every currency is rapidly losing its value. All fiat currencies come in a race towards zero. There’s never been an interval in history where fiat currency wasnt debased into worthlessness.

Enter bitcoin. Ross Stevens explains this issue very clearly within an interview he gave in-may, a portion which I transcribed:

The time of March to August of 2020 was a hardcore period for me personally. What struck me was the profound unfairness of the fiat monetary system. The profound unfairness of the impact of well-intentioned central bank activities. Well intentioned; however the results were profoundly unfair. The explosion of wealth inequality was breathtaking. And we havent seen anything yet. The explosion of business inequality. The machine favors the big companies on the small companies. Being an individual, if you didn’t own assets entering 2008-09 the American dream got pretty a long way away. You’re left far behind. But in the event that you didnt own assets entering March of this past year the American dream is fully gone man. This is a speck in the length. And thats terrible. Thats not us. Thats not our country. Were the best country on the planet.

Weve had enormous inflation in the American dream

We are able to define property and retirement because the two pillars of the American dream. Once the Fed will come in and buys Treasuries and MBS [mortgage backed securities] they’re buying houses. If you owned a residence already; golf clap. But in the event that you didnt? Too bad. Thats not fair.

Whats an exclusive version of Social Security? Its money annuity. A decade ago with $1,000,000 you can get $100,000-$120,000 each year in income. Today? It’s likely you have $30-40,000 each year in income. Retirement is now largely unaffordable.

However the biggest shift in my own thinking throughout that period was about profit peoples portfolio. There’s a disproportionate impact of profit an unhealthy persons portfolio and non-poor portfolio. With anyone who has a net worth of $10,000 the percentage of these portfolio that’s cash is 90-95% or 100%. If someone has $5,000 net worth its probably 99-100%. Should they have $1000 net worth its exactly the same. Someone with $1,000,000 maybe that percentage in cash is 10, 20 or 30% however, not 90-95%. And the issue with that’s cash is radically depreciating in value. Cash is not any longer a secured asset, cash is really a liability. And the more the Fed prints, the more the non-cash part of the wealthy person inflates and the money portion deflates. The indegent have few or no non cash assets. They’re SOL. That is clearly a terrible, terrible result.

Bitcoin has been called wealth insurance. Who needs insurance probably the most of any sort? Its probably the most vulnerable people. Probably the most vulnerable people need the wealth insurance.

And its own also life insurance aswell. Not in the sense that there surely is big payout in the event that you die. Its more in the sense of big payout when you live. MM: Ways to store your lifes energy.) Its not just a payoff in fiat money, its a payoff in personal sovereignty. Its freedom and dignity. And when whatever you own is fiat and thats a melting ice cube you lose your dignity each day the Fed prints. Which is not okay.

Fortunately we finally have a monetary system governed by rules not rulers. And its own available to all. So everybody reaches choose; that is great. You can stay static in the fiat standard in which a very small group reach print an unlimited quantity of new units of money (not for you personally) or it is possible to opt in to the bitcoin standard where no one reaches do this – including you.

It is possible to decide that is more fair.

Money at its core is merely energy and the end result is this: Bitcoin is really a highly effective method of storing your daily life energy. Fiat is really a horrible solution to store your daily life energy. Fiat wastes energy. Bitcoin reduces monetary entropy or waste to zero. No ones forcing one to hold bitcoin, however when you look at money via an energy lens the decision is clear.

Love,

Dad

If you want to attain out to the writer please email him at mark@markmaraia.com

This can be a guest post by Mark Maraia. Opinions expressed are entirely their very own , nor necessarily reflect those of BTC Inc or Bitcoin Magazine.

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