Chapter 1: The Rise of Bitcoin as a Currency

We are all familiar with the forecasts suggesting that Bitcoin might one day be valued in the millions per coin. Some speculate it could not only eclipse gold’s market capitalization but might even take the place of the US dollar as the global reserve currency. Each passing day that Bitcoin endures only increases the chance of such a scenario unfolding. The value of Bitcoin will either skyrocket or plummet to nothing; I lean towards the former.

Now, let’s entertain the idea that Bitcoin does indeed become the global reserve currency and is valued at millions. In this case, traditional currency like the dollar would become obsolete, and we would transact solely in Bitcoin. Many ponder whether this reality will materialize, but if it does, how would it alter our spending habits?

The reality is that the costs of goods and our expenditure patterns would be fundamentally transformed.

Throughout your financial journey, you might have noticed a consistent trend: expenses keep rising while salaries lag behind. This discrepancy makes it increasingly challenging to maintain the lifestyle we’ve grown accustomed to, necessitating more effort just to afford the same standard of living.

We might expect that advancements in technology would lead to a decrease in prices, but with few exceptions, the opposite is often true. Cars, homes, food, utilities, travel, electronics—everything tends to get pricier over time.

The illustration below effectively highlights this issue. Our purchasing power appears to be diminishing, which may explain why we have evolved into a society of spenders, often depleting cash as soon as it enters our accounts. Why retain it if its value is destined to erode due to inflation?

Bitcoin is poised to change this dynamic permanently.

With a capped supply of 21 million coins—many of which are lost forever—the amount of Bitcoin available is inherently limited. Additionally, the Bitcoin halving event reduces its inflation rate by half every four years until it hits the cap, making Bitcoin an increasingly robust currency over time.

As a result, the value of BTC is expected to rise relative to the dollar, fundamentally altering our spending habits. In the past, purchasing a new gadget, a smartphone, or even a coffee was often an impulsive decision, as holding onto dollars didn’t seem particularly rewarding. However, with Bitcoin, such purchases could carry long-term consequences.

For instance, a man famously bought two pizzas for 10,000 Bitcoin a decade ago, which was worth about $40 at the time. Today, those pizzas would cost him $280 million. This is a dilemma Bitcoin holders will face: the decision to enjoy today’s luxuries could mean forgoing substantial future value. That $6 coffee might translate to $600 down the line.

This shift could reshape our entire society.

As consumers, we are often driven to buy more and more. For example, individuals frequently upgrade to the latest iPhone, even if their current model functions perfectly. This consumer behavior allows companies to become complacent regarding innovation and product quality. Under a Bitcoin standard, people may become more discerning, opting only for high-quality products that endure over time.

In the end, this could greatly benefit consumers, harkening back to previous generations when items were built to last. What would it take for you to part with your Bitcoin?

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Chapter 2: The Revolutionary Spirit of Financial Independence

Bitcoin has the potential to ignite a movement toward financial autonomy. Its decentralized nature allows individuals to take control of their wealth, free from the constraints of traditional banking systems.