I believe there is urgency in this conversation and the message below intends to initiate the discussion. I personally have no formal training in macro economics so please consider this my opinion with various links to experts in the field.
Financial advice from your local gym owner is definitely not typical and I would never attempt to offer such. Similar to my messages in Feb & March about the pandemic and supply chains, I believe sharing infomation and viewpoints allow the development of informed decisions.
To keep this message simple, I am going to assume we all have a base understanding of the three topics below. If not I have provided links to start your journey of knowledge in macro concepts. I will often utilize links from Wikipedia as I believe that this can provide the framework to fully understand a topic. Please utilize additional sources due to the possibility of inaccuracies in Wikipedia.
The biggest risk in life is inaction due to ignorance. We have the resources neccesary to now choose the best action for our financial future.
A group of private banks who set interest rates and monetary policy from an independent, non parisian position.
A physical backing of gold for every dollar in circulation. See also Sound Money.
A monetary system with no instrinsic value and highly variable money supply.
For our entire relationship at Fury, we have provided a service of health creation in exchange for your dollars, which you earn through your time elsewhere, just like how our coaches are compensated for their time with you. Ideally, all parties involved believe they are recieving the best value for their time.
In simplest terms, money represents a medium of exchange for your time. Because of money, we all can pursue our passions & specialists to exchange with other experts in various fields. We all agree that dollars hold value and are an acceptable unit of exchange. We are fortunate to live the in the United States as our dollar is the Global Reserve Currency which is used in approximately 70% of all transactions globally. I am proposing that just because dollars are what we have always used in our lives does not neccesitate that will continue or that it is the best option.
Historically, global currencies have a 50-100 year lifespan until some crisis or inflationary policy begins to debase the currency. The dollar became the global reserve currency following World War 2 when it was backed by gold. Due to an economic crisis in the 70s President Nixon suspended the dollars convertibility to Gold. Since this event we have operated a purely Fiat Money system whose supply is manipulated by the Federal Reserve.
Below are three of the most influential events & policies that are responsible for todays economic policy.
Brenton Woods Agreement
An international monetary agreement intended to rebuild relations and economies following WW2. This initiated the Global Reserve Status of the US Dollar.
The Crisis in 1971 that led to the suspension of US Dollars being convertable to Gold. Intended as a temporary policy but led to our current fiat money system.
Monetary policy where central banks purchase finanical assets through debt expansion in order to keep the economy growing.
What Makes Good Money?
1. Universally Accepted
2. Easily Divisible & Transferable
3. Retain Its Value Over Time
It is undeniable that the US Dollar has been the best option for the past few decades. When the US held over 50% of the worlds goal the dollar represented real wealth.
Decade after decade we have slowly debased our currency to represent a hollowed out shell of its past. Inflation represents the loss of purchasing power of a currency. Hyperinflation is the rapid and drastic loss of value of a currency with historical examples in Brazil and Germany.
Inflation is the single biggest risk to our financial freedom. Even the currently accepted ‘ideal 2% annual inflation’ in our economy actually serves as an additional tax or financial slavery. We cannot simply accumulate money to sustain our future. If we do not risk it to create additional yields our wealth will deteriorate.
Inflation is not a fact of life, it is a product of our dysfunctional system. Our wealth can have deflationary properties, meaning it increases in value over time.
Inflation calculated by the Consumer Price Index which utilizes abstract formulas and various products to determine cost of living. This formula has many critics as it does not consider health care, housing, education, financial assets and social mobility.
Over the past few decades our monetary policy has kept interest rates unnaturally low to incentize faulty monetary actions on individual, corporate and municipal levels. Balanced budgets are literally less common than balanced diets in todays world and we know the health implications of nutrition.
Today’s monetary policies literally fix & control the gauges that historically were used to measure the strength of the economy. When the Federal Reserve purposefully keeps interest rates, yeilds and and other tragets in specific ranges, they are no longer a valuable gauge. This is all being done to imply the economy is healthy & the dollar is strong but the real signs are there.
In our lifetimes we have seen successive financial crisis due to this monetary policies. The Fiat system and central bank intervention is prone to ‘Bubble Creation’ in the market followed the bail out of the bad actors. We have literally seen successive crisis due to reckless financial practices and the socialization of the consiquences. When we bailed out the banks and financial institutions with government money, we literally are making our children pay for those mistakes while the individuals behind the action had no consequences.
Fortunately, over the past 6 months our government has proven that our tax revenues are not needed any more. We have literally created years of tax revenues to keep our financial markets booming, ‘with no side effects’.
With the very real possibility that we are approaching significant inflation and the loss of the global reserve status, we must consider how we can store our wealth in a safe, deflationary asset. We have seen the precious metals jump over previous weeks and I belive there is significant area for growth there. Every household should have a store of gold, silver and guns in my opinion as these are historically liquid & deflationary assets.
I would like you to consider what the future of money will be and present an opportunity to acquire an asset that I believe will see 100x growth over the next 5-10 years. This same asset has experienced ___ growth over the past 5 years and is the single best perfoming asset of the decade.
Introduce BITCOIN. In 2008 an unknown crytographer going by the sudamym of Satoshi Nakamoti published this WhitePaper detailing a digital peer to peer currency known as Bitcoin. What is uniquely special about this technology is there are no central powers or governing body, instead it utilizes a multitude of independent computers running a set code. The Bitcoin blockchain operates as a public ledger ran by thousands of individual computers processing a predefined code. It essentially represents the value of computing power. Every transaction every created is publicly visable which is a core component of its safety mechanisms as these individual computers must operate in a consensus.
Bitcoin is possibly the single best store of value ever created due to scarcity, divisibility and ownership. There will only be 21 million bitcoin ever created and they are being produced at a predetermined rate. Mining, which represents to creation of new bitcoin are created by the digital work of supercomputers solving ever increasing equations. Every 4 years the rate of production slows until the final bitcoin is produced in year 2150.
This is represents a financial asset that is deflationary in nature. The supply of Bitcoin will never exceed 21 million coins regardless of the demand or monetary policy. Bitcoin represents a ‘Code is Law’ ideology and take the human manipulation out of the equation.
We all have experienced a variety of technology based disruptions through our lives. Cell phones, Internet even the CrossFit methodology and internet based communities have drastically changed our life. Bitcoin represents a disruption of MONEY, on a global level. Seriously consider that for a moment.
The current Market Cap of Bitcoin is 200 billion dollars and the global economy is nearly double that size, its a huge number. Bitcoin is barely a decade old and has proven it is a safe & effective store of value with the only need of an internet connection.
Every bitcoin is divisable to 1/100million of a coin which is termed a satoshi. As Bitcoin continues to grow its share of the global economy, the value will continue to rise and we will continually use smaller and smaller pieces of a coin. I believe my children will not exchange in ‘Bitcoins’ but in 100’s of Satoshis.
There is an absolute FINITE supply of bitcoin. No bank or government can ever create more. The finite supply and predetermined rate of flow create a deflationary asset which will increase with time. As a global currency, Bitcoin has the potential to exceed the market cap of Gold. I consider this moment in time similar to the land race in the 1800s. We have the opportunity to aquire a finite piece of land at a very low rate.
The peer to peer nature of Bitcoin allows you to act as your very own bank. No longer are we at the mercy of institutions to process transactions, charge maintenance fees or limit who and what we pay for. With not central governance or control the individual holds the key of their wealth. As a business I can transact with my customers directly, and an individual you can send unlimited quantities of money to any person in the world(or space) for pennies, INSTANTLY.
Since the introduction of Bitcoin in 2008 there have been thousands of other blockchain developments in the field. While there are many unique solutions that have been created by these developments, Bitcoin is truly a unique store of wealth.
We have been transmitting our personal information via physical magnetic strips since the 1980s. The transactions of tomorrow will be private, instant and without central banks to process and charge for. The coming blockchain revolution is going to improve countless parts of our life. Today we have an opportunity to take ownership of our wealth and save our assets from a monetary collapse.
I am challenging you all to purchase some quantity of bitcoin as an investment. You will confidently know that even if the price falls substantually I will always accept it as payment at todays rate.
July 28th 2020 BTC = $11,000
$130 Membership = 0.0118
Converting dollars to Bitcoin is performed at Exchanges or Onramps. Some of the most popular options are:
You Bitcoin needs to be stored in a Wallet. There are many mobile/desktop options such as:
There is an unlimited amount of information being produced on the web. Here are a few ‘Introduction’ options for broad resources in the field. This rabbit holes goes deep…
Remember, this is all simply my opinion of very broad macro economic principles. I know that many of you have a better understanding that I do and my goal is to facilitate a conversation. If you feel so inclined please comment below.