Speakers: Pierre Rochard
Transcript By: Bryan Bishop
Today I am going to be preaching to the choir I think. Hopefully I will be reiterating and reinforcing some points that you already know but maybe forgot to bring up with your nocoiner friends, or learning something new. I hope there’s something for everyone in here.
Q: Should I buy bitcoin?
Q: Are you going to troll a journalist?
A: Today? Already done.
One of the biggest misconceptions I heard when I first learned about bitcoin was that bitcoin was just a payments system. If you read the whitepaper, then you read this and you think okay it lets me transfer value without a trusted third party. The whitepaper doesn’t say anything at all about bitcoin’s monetary policy. It doesn’t talk about the cap. It doesn’t talk about the halving, or all of this scarcity. It has been very easy for folks to overlook that bitcoin inherently de facto as it how it exists in the world is not just a payments technology. It is also a savings technology, as well.
When money is on your balance sheet, if you have ever taken an accounting class, which you should, then that money is considered savings. This is where you put money to work to pay employees and suppliers to generate sales and generate a profit, that’s investment. Savings is just holding cash on your balance sheet. You’re deferring your decision about when and what to invest in. Savings is a crucial part of the economic process for people being able to allocate their capital across time so that they don’t make a rash investment or a compulsive investment decision.