Sean McFarland wrote a post · Feb 8, 2024 08:44

BTC

BTC (part 3)

Bitcoin being an asset class of its own, has begun to trade in a range many consider following an exponential power law and has been range bound. some say it trades based on the STF principle. i am not sure if either is true but this i know…

i believe all assets will be value based on BTC in 6-10 years. in other words, BTC has begun to reprice all other assets. why? just look at the fundamentals. BTC is not inflated like currencies and/or fiat currencies. (as a proof, chart any indices against btc on a 12 or 13 year chart. they will all look nearly identical)

lets look at an example:

say you bought your house for $300k 6 years ago. Three years ago your house was valued at $400k (a 33% increase while the 3 year inflation was 10%, right)? this year your house is valued at $500k (a 25% increase while inflation was 15%)

In both Evaluations your appreciation led i flation by 23% and 15%.

Using the dollar as a base of value is simple. we just did it.

Leta see what the value was in BTC.

6 years ago you bought the house for 33.33 BTC (say a 9k BTC) (300/9). 3 years ago your house was worth 25 BTC (say a 16k BTC) (400/16). Today you could sell your house for 11.3 BTC (48k BTC (500/44).

BTC is deflationary. Parking USD or any currency in BTC is risk off.

look at this chart of S&P vs inflation or inflation adjusted S&P.

Now look at the inflation adjusted chart. wait? we are not at all time highs ? No. inflation of the dollar erosed value. its does by inflating the dollar.

So why invest in BTC. Store and secure value. nothing based on the dollar as a counterpoint to value could do better than BTC.

(cont’d)

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Sean McFarland

25 years as engineer and CEO of a consulting firm. Early retirement will require aggressive strategy.

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