The Bitcoin Standard Podcast 258. Investment on a Bitcoin Standard
20 snips
Jan 28, 2025 What if Bitcoin was the only currency? The conversation explores how this shift could alter capital markets and the unpredictability of human behavior in finance. It raises intriguing questions about saving versus investing and the dynamics of IPOs in a Bitcoin economy. With a focus on prudent saving habits, it argues that increased savings can lower costs and boost productivity. The need for smart capital allocation in a Bitcoin era emphasizes a more merit-based investment approach, fundamentally changing our perspective on economic growth.
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Savings and Homeownership
- A Bitcoin Standard could incentivize saving due to predictable appreciation, potentially doubling savings in 25 years with 3% growth.
- This ease of accumulating wealth could make homeownership more attainable at younger ages.
Business Size and Savings
- Saifedean Ammous suggests businesses might be smaller under a Bitcoin Standard due to higher individual savings.
- Lower cost of capital for large corporations currently incentivizes franchising over unique businesses.
S&P 500 Relevance
- The importance of the S&P 500 might diminish under a Bitcoin Standard as individual savings increase.
- The incentive for IPOs might decrease, leading to a more diverse ecosystem of smaller companies.
