Why Bitcoin is generational wealth

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The short film “Bitcoin Is Generational Wealth” by Matt Hornick and Tomer Strolight premiered on November 1, 2021 to shed light on Bitcoin’s true value proposition. As many projects around the world today seek to enrich their founding members and generate palpable U.S. dollar profits for all who join them, the world’s safest and strongest monetary network aims to propel the humanity forward on the basis of the fundamental rights to property and freedom.

As people around the world watched the film, many different reactions emerged. Bitcoiners, aware of the purpose for which Bitcoin was presented to the world in 2009 in direct response to central bank bailouts to financial institutions the year before, became moved upon seeing the future reality that a healthy and appropriate currency could. to allow.

“The film sparked a lot of emotions in the community, Twitter exploded with comments and people said they were moved to tears,” said Daniel Prince, host of the “Once BITten” podcast. “Hope was the main emotion shared in our house, a feeling so lacking in this place we call ‘normie’ land.”

Driven by the desire to change the world, Bitcoin evangelists are already preaching this hopeful reality today; However, skeptics often fall into the trap of spurious narratives and dismiss the nascent monetary network for certain characteristics inherent in its first stage of monetization.

“Not many people understand the seriousness of Bitcoin and the problems it solves,” commented Christian Keroles, Managing Director of Bitcoin Magazine, after watching the film.

Robert Breedlove, host of “What is Money?” show, echoed Keroles’ comments by noting that the film posed “a sharp critique of the prevailing fiat currency paradigm and a hopeful look at a more harmonious future for humanity through the monetization of Bitcoin” .

In contrast, people who don’t understand the Bitcoin revolution, and therefore own no bitcoin, felt a mixture of fear and confusion as the film progressed to show what the 22nd century might look like if the humanity adopted bitcoin as money. A significant gap between the reality of the here and now and that of the future represented has led many to wonder how Bitcoin could bridge this difference.

“Bitcoin is Generational Wealth” depicts different eras of mankind, from the prevailing war and hunger in 1948, just a few years after the end of World War II, when a significant part of human society had suffered. long conflicts and considerable losses. People then had to rebuild everything from scratch while warning future generations of what tyrants and the collapse of individual rights might lead to. However, they did not have the means to defend themselves against similar events in the future – they could only hope that such chaos would not happen again.

Fast forward 50 years to 2008, and the company had rebuilt itself. Information circulated around the world and business networks evolved to encompass almost every corner of the planet as entrepreneurship flourished. However, the subprime mortgage crisis ensued, wreaking havoc on businesses across the United States and leaving millions of people unemployed. However, the Federal Reserve rescued the most prominent players, bailing them out with freshly printed soft money through cheap debt. The principle of fairness had been thrown out the window, and in the midst of the chaos Bitcoin was born as the system became addicted to easy wealth.

In an era of unequal treatment by the government and its monetary policies, Bitcoin promised the establishment of an incorruptible financial system in which users would not be favored or discriminated against based on their credentials, status, of their power or their wealth. All participants are equal in the Bitcoin network, and anyone who participates can store or transfer value without needing authorization. Compared to the then 37-year-old petrodollar system, which steadfastly and consistently applied double standards based on a political agenda, the new system envisioned by Bitcoin challenged many established beliefs.

The film travels through 2021, the year this article was written, a period that proved Bitcoin’s value proposition to be even more relevant. The warrants and decrees enforced by the authorities have taken away the freedom of many, leading to fear, hysteria and division. A war for property and money began, and soft fiat currencies began to degrade rapidly. Society was divided between those who believed in easy rewards and those who fought for freedom and honest work. The former turned out to be very appealing, and the rulers enacted laws to increase the printing of money and make empty promises that things would get better if people complied.

Despite the barriers, Bitcoin began to thrive even more as El Salvador became the first country in the world to make BTC legal. Bitcoin’s antifragility would be demonstrated through the protection of wealth, property and freedom.

The change Bitcoin is allowing society to make, and the point that nocoiners don’t yet understand is about incentives. The fiduciary system is based on the premise that long-term preference decisions are conducive to economic growth. As people spend more, the economy grows more, and more money is created, and more money is needed in the now more productive economy.

Bitcoin challenges this status quo by reintroducing the values ​​of hard and honest work and the corresponding rewards. The analogy made from the network’s consensus protocol, Proof of Work (PoW), is that participants are incentivized to behave honestly through economic incentives and the dynamics of game theory. By staying true to honest work, pay follows and every participant benefits. This dynamic is not valid with the current fiduciary system because the closer you are to the ticket printer, the more they benefit from it. Therefore, the rewards are based on the status and position of each participant in the system, rather than on their proven work.

Additionally, by restoring incentives, Bitcoin allows people to save and invest for the future – a position that contrasts with the “spend” mentality that prevails in the fiat money system. Bitcoin is a generational wealth because it allows individuals, families, businesses and governments to have a short-term preference and to think long-term, with the confidence that their money will preserve their purchasing power and make it possible to make larger multigenerational investments.

Time preference is key because it underpins all company decisions – from choosing what to eat for breakfast to the more complex investment in a new home. With distorted incentives, society fluctuates inconsistently, always seeking the most rewarding purchase now instead of focusing on the long term. Many of the changes that this simple change would allow are depicted in the film, including agriculture, food, business, education, and basic needs such as water, bureaucracy and energy.

A successful company focuses on the small actions that can be done now to create a better future instead of focusing on what they can do now for instant gratification. Since most decisions in a society are based on monetary tradeoffs, money is essential to establish the right incentives, and people act on them. By restoring healthy currency and ending the culture of easy and addictive money, Bitcoin enables humanity to walk together to achieve a second renaissance and achieve hope, productivity, creativity and optimism.

“The world is building wealth that can no longer be measured in terms of the quantity of money, since the quantity of money hardly changes. What happened to wealth? is measured by the quality of life of all humanity, ”Strolight recounted in the film.

Ultimately, by re-establishing the right incentives and freeing the company from worrying about outperforming the inflation rate through paper investments, this is what Bitcoin allows.

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