I reference my thesis on the intrinsic worth of bitcoin on this piece, initially revealed in Bitcoin Magazine in April 2021. It represents my view on the worth of BTC because the anti fiat, fiat is the Ponzi, and the way everybody wants insurance coverage towards the Ponzi collapsing. As Voltaire famously said, “Paper money eventually returns to its intrinsic value — zero.”
As Charlie Munger famously said, bitcoin “is rat poison squared.” Well, Charlie, have your capsule, as a result of fiat is the rat.
The foundation of my paper is that BTC is insurance coverage on the decaying credit score high quality of fiat-issuing sovereign nations. As such, it is credit score safety on a basket of fiats. When you personal insurance coverage, you personal volatility. Similarly, once you are lengthy credit score, you are brief volatility. Most belongings/funding mandates are brief volatility. Accordingly, the investing world is brief volatility, and it desperately wants to offset that danger with insurance coverage (or being lengthy volatility).