

Episode 1 - Can bitcoin be a better store of value than the stock market?
Nov 22, 2019
The hosts delve into the properties of a store of value, contrasting Bitcoin and the stock market. They explore time horizons for assessing value retention and dissect key criteria like liquidity and appreciation. Discussion highlights include Bitcoin's predictable inflation schedule, the stock market's resilience against inflation, and the implications of quantitative easing. They also tackle the role of consumer behavior in asset adoption and Bitcoin's unique fixed supply compared to gold and commodities. Finally, they reflect on historical trends and potential future challenges.
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Defining A Store Of Value
- A store of value should be liquid, relatively stable, and protect purchasing power over long horizons like 30 years.
- Alex contrasts stores of value with speculative investments that accept high failure risk for outsized returns.
Money Supply Inflation Is A Hidden Wealth Tax
- Alex argues monetary inflation acts like a hidden wealth tax, larger than consumer price inflation suggests.
- He says roughly 7% annual money-supply inflation transfers wealth away from holders of fiat over time.
Three Criteria To Judge Stores Of Value
- Evaluate assets by appreciation, exchangeability into spendable money, and liquidity over your horizon.
- Shimon lists these three criteria to compare stocks, crypto, and real estate as stores of value.