WHY I HAVE MILLIONS IN BITCOIN AND CONTINUE TO BUY OVER ANY OTHER ASSET
*This was originally a storm of texts I sent to someone who asked me if I think the government will ban all tax loopholes and offshore strategies*
I am not only in bitcoin for tax avoidance. I believe it’s insanely undervalued by the market, and every scenario I can think of only leads to the market realizing that.
Every time the tax code is changed a new loophole is opened up. And if they get too strict the rich will leave and pay their tax to a country that isn’t as greedy and communist. Which results in less revenue for the feds. So they know to walk a line.
They won’t ever decide that you can’t write things off or utilize debt because that would destroy GDP. Those are the most fundamental avoidance mechanisms.
The tighter they make things, the more people will also start to exit the system entirely and buy bitcoin or any other crypto.
This is why I feel so comfortable with all of my capital in bitcoin. I understand what the government MUST do to raise GDP and handle national debts, increase revenue and handle expenses. All of the things the government must do in every scenario align completely in the market perceiving bitcoin as more valuable.
If they regulate too much, bitcoin is a safe haven and a way to exit oppression. They simply have to and cannot stop creating money.
If they increase regulation, that means government expenses must increase to enforce and uphold that regulation. More government means even more expenses and we are already in a deficit.
So regulation fuels inflation which fuels bitcoin price increases.
If they don’t regulate, inflation will continue to increase because again, we are already in a deficit and money has to be printed so everything doesn’t collapse.
Even if they miraculously in an alternate universe reached a balanced budget (impossible), commercial banks are responsible for 98% of the inflation and they aren’t going anywhere.
If they ban banks and loans (impossible and nonsensical), the US and world economy collapses and thank god I have bitcoin which is globally stabilized compared to a vehicle or system directly inside (land) or of (US-based co stock) the United States.
The only thing that can even be seriously considered as a possible substitute is physical gold which you have stored with you. People who talk about worst case scenarios always like that option, but it doesn’t protect from the most probable scenario: the US becomes basically communist and you want to leave. Good luck leaving with heavy gold bars.
@MEvsIRS Theoretically if you were to lose all you have worked for thus far tomorrow - companies and connections mainly
what would be your focal steps in order to get back to the position you are currently in.
- actions in your view that will yield the greatest returns expeditiously
@MEvsIRS Considering the experience you presumably have of many markets
what would you say is the best skillset in todays world in a first world country to have that can bring the greatest value to the most amount of people and bring you the greatest leverage.
EXACTLY WHY EVERYTHING SUCKS, COSTS MORE, AND STEALS YOUR ATTENTION (INSANELY IMPORTANT TO UNDERSTAND THESE CONCEPTS I BROKE THIS DOWN AND ACTUALLY USED EFFORT IN THIS POST WHICH I HAVE NOT DONE IN MONTHS)
Capitalism doesn’t make any of this happen so lets get that room temp IQ conclusion out of your mind forever
What people are actually describing is fiat currency and the downstream effects of inflation
There are a lot of second and third order consequences that come from that
One of the biggest is a shift in time preference
Capitalism itself does not have rules or guaranteed outcomes
It is not deterministic
It is just a label for a free market
At its core it means choice
We do not even live under real capitalism
So blaming capitalism for anything happening today already falls apart
In a truly free market some of these behaviors would still exist
Because they come from biology and human nature
But they would not be anywhere near this exaggerated
Materialism would not dominate the hierarchy to this degree
Status games exist in every species
They always form hierarchies around something
What changed is what signals status
Consumerism did not naturally emerge on its own
It was pushed
Companies are not the root cause of that
They respond to incentives
The real driver is government and the single metric it worships
GDP
GDP must go up
Our two party system and short term political cycles make this worse
If GDP goes down during an administration’s term they lose power
The public has been trained to believe GDP going down means the economy collapsed because of whoever was in charge
What people do not understand is that around 70 percent of GDP is consumption
Not quality of life
Not ownership
Not well being
Future debt obligations are not accounted for at all
That matters when almost everything is done on leverage
Buying something with a loan still pushes GDP higher
Even though the person does not own it
If most consumption and investment is debt based then GDP is no longer measuring prosperity
It is measuring throughput
More spending equals better optics even if people are poorer and more stressed
Low cost organic fun does not help GDP
Dive bars
House parties
Surfing
Live music without a paywall
Highly monetized status environments do
Bottle service
Guest lists
Promoter hierarchies
Pay to participate social scenes
So that is what survives
This did not happen because of capitalism
It happened because incentives were warped
GDP went up
Culture got worse
And people blamed the wrong thing
GDP only measures activity
It only cares that money changed hands
Because governments are judged on GDP
They design policy to maximize transactions
Anything that increases the number of times money moves is rewarded
Disposable consumption is perfect for GDP
If something breaks quickly it must be replaced
That is another transaction
GDP goes up
If something is rented instead of owned
That is a recurring transaction
GDP goes up every month
If an experience is gated behind constant spending
That is better than a one time purchase
So markets slowly shift toward
Subscriptions
Fees
Access instead of ownership
Planned obsolescence
Not because companies are evil
But because those models are favored by policy and finance
Credit accelerates this
Easy credit lets people spend money they do not have yet
That pulls future consumption into the present
GDP records the spending now
The debt shows up later
From the GDP perspective this looks like growth
From the individual perspective it is compression
Time preference shifts lower
People spend sooner
Save less
Replace instead of maintain
Advertising fills the gap
If demand is pulled forward with credit
It has to be constantly recreated
So marketing shifts from informing to stimulating
From usefulness to identity
From need to status
Consumption becomes part of the social hierarchy
Experiences that used to be social and informal
Become branded
Curated
Monetized
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