The Case For 10x Bitcoin Is Simple – Stop Making It Hard

The Case For 10x Bitcoin Is Simple – Stop Making It Hard

Friends, on our road to wealth we will face many enemies.

Most of them will be of our own making. One in particular is our inclination to make things more complicated than they need to be.

It’s human nature to overcomplicate things. I think this is driven from the fear of making a bad decision. That’s why when it comes to investing, it’s easy to fall into a black hole of complexity that leaves you unable to make good decisions.

Here's the rub…

At the end of the day, investment success comes from making good decisions. And then allowing those good decisions to play out in your favor. That’s why when it comes to investing, I do my best to keep things simple.

Let’s take bitcoin, for example…

Behind bitcoin there is a lot of complexity… The bitcoin white paper, the code, how nodes work, understanding the consensus mechanism, etc.

When I first discovered bitcoin in 2011 (at the time it was trading at $7), I fell into a black hole of “analysis paralysis.”

(Analysis paralysis is the technical term for being unable to make a decision due to overthinking.)

Then in 2016 when bitcoin had run to $1,400…. then crashed to $200… yet didn’t go to zero… I asked myself a simple question: “What makes bitcoin valuable?”

That’s the question I asked every bitcoin expert I met.

From asking that simple question I learned that bitcoin is a secure way to store, send and receive value outside of the traditional financial system.

That’s why in the beginning I saw bitcoin as a censorship-proof, peer-to-peer payment network.

At the time, the whole “payment network” as measured by the value of bitcoin was $6 billion. I asked myself how much a secure global independent payment network could be worth if it became very popular.

I figured a network like that could eventually be worth $1 trillion. Fast forward six years and that’s exactly what happened.

So where does that leave us now?

What Makes Bitcoin Valuable Today?

Since I first recommended bitcoin in early 2016, U.S. national debt has risen from $19 trillion to $34 trillion. The Federal Reserve balance sheet has grown from $4.5 trillion to as high as $9 trillion.

The world is very different place than it was in 2016.

The United States is on an unsustainable financial path. That means at some point something will “break.”

That could lead to a massive devaluation of the U.S. dollar, skyrocketing interest rates, rampant inflation, yield curve control, price controls or capital controls.

I don’t need to know exactly what that “break” will look like. I just need to know one is coming. That means it’s up to me to protect and grow my wealth when the eventuality happens.

When governments experience a breakdown in their finances, the playbook is simple. You buy assets that are in limited supply and difficult to confiscate. In the past gold, gems, art and collectibles have filled this role.

It’s important to note these assets offer no cash flows and are valued in aggregate at over $17 trillion. I make mention of that because an oft-mentioned criticism of bitcoin is that it provides no cash flows.