The captain said: Bitcoin is the largest wealth redistribution in human history (Part Five).
Bitcoin will cause the largest wealth redistribution in human history, and no one can be an outsider.
In the past ten years, not buying Tencent stocks means I didn't earn that money; life goes on as it should. However, if I hadn't bought a house in the past decade, life would be very difficult now. Two people with the same work income, one buys a house and the other doesn't, will have a difference in asset scale by an order of magnitude. The essential reason for this gap lies in the seigniorage.
In our country, M2 has an average annual growth of 20%. Over the past decade, besides real estate, no other major asset class has been able to consistently outpace inflation. Therefore, not buying a house is equivalent to being taxed 20% annually through seigniorage, while buying a house exempts one from that tax.
The rationale for buying Bitcoin now is similar to buying real estate ten years ago. More and more foreign investors are choosing Bitcoin as their preferred asset for hedging and store of value, easily outpacing the world's average inflation rate. Moreover, Bitcoin is still in its early stages, with tremendous potential for network effects and an average annual growth rate of 45%.
Two factors combined make Bitcoin's potential for appreciation much greater compared to real estate from ten years ago, but the downside is high volatility. Therefore, it's crucial to maintain a good mindset; otherwise, it will be unbearable. In fact, not to mention 1 million USD, even at 370,000 USD, it will have a significant impact on ordinary people.
Because when Bitcoin reaches 602,000 USD, it will match the current market value of gold (14 trillion USD). At that time, central banks around the world will have to consider purchasing Bitcoin, incorporating it into their foreign exchange reserves, and partially issuing fiat currency pegged to Bitcoin.
Some say, how could the central bank be an accomplice? Suppression is more likely.
That's right, initially there will definitely be suppression. However, central banks are in competition; if the People's Bank of China doesn't buy while the Federal Reserve does, the Fed will gain a significant advantage, and at that point, the People's Bank won't have much say.
At that time, those who hold Bitcoin will not only be exempt from seigniorage tax but will also share in the revenue from it with the central bank. Those who do not hold Bitcoin will have to continue paying the seigniorage tax. The difference between holding and not holding Bitcoin will be even greater than the current difference between having or not having a house.
No one can escape the influence of Bitcoin, whether they realize it now or not. The only difference is whether they accept it actively now or passively in a few years.
Everyone is in the game, either for it or against it.