Why you should be optimistic about the future of Bitcoin

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The Austrian economy is a very common topic of discussion and study within the bitcoin community. Being the basic economic theory that bitcoin is built on, it makes sense that understanding this is a main lead for someone to get into bitcoin. One example is Josef Tětek, one of our regular contributors here at Bitcoin Magazine.

Tětek has written some fantastic articles for us including “Your Financial Data Isn’t Private, Bitcoin Can Solve This Problem”, “Here’s Why Bitcoin Will Rejuvenate Your Hope In Life” and “Bitcoin Is The Sustainable Money Europe Deserves “. Bullish in both bitcoin and life, Tětek maintains an optimistic outlook that speaks to the good bitcoin is capable of doing.

In our interview, we discussed how his foundations in Austrian economics led him to Bitcoin, and how the reverse is often true for bitcoiners. We then discussed the impact of Bitcoin on his life, both in his personal preferences and in his career. We’ve covered what he thinks is the most important part of educating people about Bitcoin – in his opinion, an understanding of fiat. Finally, we discussed what he is looking forward to in the space and his bullish thoughts on price. He said: “In the short term, we are generally too optimistic. In the long run, we are too pessimistic. “

Check out the podcast above and be sure to read our written interview.

What’s your Bitcoin rabbit hole story?

I studied Austrian economics in school and after graduation co-founded a libertarian think tank in the Czech Republic with like-minded classmates. This was around 2011. We were mostly gold and silver bugs at the time, and although bitcoin was discussed among Austrian libertarians / economists, it was in a dismissive way at first. . I remember the bubble when bitcoin rose to $ 30 and fell to $ 2 – I thought that was it for bitcoin.

In 2013 when Mt. Gox and Silk Road collapsed I read a bit more about bitcoin but again thought it was going to die after major exchanges and markets closed. Then around 2015 I figured out that this thing wasn’t going to die and that’s actually what the gold bugs were looking for – real free market silver.

I was sadly won over by the allure of shitcoins from 2017 to 2018. Bitcoin’s maximalist signal wasn’t that strong back then, or maybe I just chose to ignore it because I was still had the fiat mindset and wanted my bags to pump. Anyway, I was a bad shitcoin trader and ended up with less sats after this time.

In 2020. I wrote a book with a somewhat original title – “Bitcoin: The Separation of Money and State”, in Czech. It’s a bit similar to the work of Saifedean or Vijay – a dive into monetary history and monetary economics.

Writing the book ultimately turned me into a Bitcoin maximalist – nothing that Bitcoin makes sense to me anymore.

How has Bitcoin changed your life?

I’m sort of a stereotypical bitcoiner in this aspect. Bitcoin has definitely reduced my time preference: I think about the future a lot more, because there is something to look forward to. Fiat has really turned our economies and our societies upside down, and with Bitcoin we have a solution at our fingertips.

Like many others, I began to look for value in other areas of life and discovered the benefits of intermittent fasting, carnivorous dieting, and regular exercise.

Bitcoin has also changed my career. I quit corporate life in 2018 and was able to focus on “crypto” first, then bitcoin when I found out “crypto” was bullshit. I have been working for Trezor since Spring 2021 and it is the best job of my life – I study Bitcoin every day and explain why Bitcoin is important to others.

The articles you wrote for the magazine were aimed at educating others on the best way to maximize their bitcoin stack. What do you think is most important for people to learn about bitcoin?

Two things: how fiat works and how bitcoin works.

Most people don’t really think about how money works today. Many still believe there is a connection to gold, or that central bankers have the science of money nailed down and that there is nothing wrong. But when you show people the long-term charts – interest rates, price levels, M2 money supply, central bank balance sheets, debt levels – it really doesn’t look sustainable. So this is the first important thing: to see that there is something very wrong with the way the monetary system works today.

The second is how Bitcoin works. And I mean both as a monetary system and as a technology. The value of Bitcoin as a currency lies in its predictable and immutable monetary policy which contrasts directly with the monetary policy of fiat money. But for people to benefit from it, they need to understand how it works on an individual level and how to properly hold bitcoin. And I think the Trezor team does a great job providing the right tools for ordinary people to protect their sats.

What are you looking forward to the most in the Bitcoin space?

There are many things. Adoption of Taproot and Schnorr and what benefits it will bring to users. El Salvador’s upcoming bitcoinization – and massive and growing adoption in developing countries in general. I look forward to the continued growth of the Lightning Network and the third layer above – check out the recent Impervious AI hackathon, it’s something fascinating.

Most importantly, I look forward to more and more people realizing that Bitcoin will never go away, and the implications of that.

What is your price forecast for the end of 2021 and the end of 2030?

Let me start my answer with this: In the short term, we are generally too optimistic. In the long run, we are too pessimistic. By the end of 2021, I think we’ll see bitcoin over $ 100,000. By 2030, over $ 1 million (in current purchasing power). But in the long run, the fiat price doesn’t matter, as we’ll see fiat fail and bitcoin take over.

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