BR #9: The Ultimate Index Fund

(1 minute read)

🤜 Crush inflation with the index fund of all index funds:

🔥 BTC 🔥

Wait, what⁉️

Ok ok ok, I already hear you saying:

"George, Bitcoin is not an index fund 🙄"
"You are humiliating yourself in public 🤡"

But please bear with me!

Here is my case:

- Technology allows us to automate stuff
- It lets us to produce more with less
- There are 2 ways for you to benefit from a new technology:
1️⃣ As a shareholder in the company that builds the technology.
2️⃣ As a consumer who benefits from lower prices enabled by the technology.

Benefiting as a shareholder in public companies (via Stock Index Funds) is:

• easy 🙂
• but the returns rarely outpace real inflation 😢

Benefiting as a shareholder in private companies (via angel investments):

• can be extremely profitable 🚀
• could outpace inflation 10x 🚀
• unfortunately, requires a great investment network, a lot of time, knowledge, and capital... 😢

Benefiting as a consumer:

• is generally easy....just use the product that got cheaper thanks to the new technology 🙂
• unfortunately, due to central banks' consistent printing of fiat money, prices that should normally go down...stay the same or even go higher 😢😢😢

Take a look at the prices of food and real estate: technology has made production of both food and real estate so much faster and cheaper.... and yet, the prices of all types of food, apartments, houses have been growing forever... 😢 (or to be more precise, prices have been growing especially fast since 1971, when the USA stopped backing USD with gold and started consistently printing dollars).

And here is my case for Bitcoin as the ultimate index fund:

• BTC is the world's first asset that is strictly scarce (21 million coins).
• People all over the world gradually start using bitcoin as money.
• Due to its limited supply, bitcoin guarantees that as technology let us produce more with less, prices of everything will go down (if you measure those prices in bitcoin).

Innovation is infinite!

Fiat is infinite -> Prices of goods measured in fiat stay the same or keep increasing.
Bitcoin is finite -> Prices of goods measured in bitcoin keep decreasing.

So to recap, you cannot benefit as a shareholder from all public and private companies, but "the bitcoin index fund" lets you benefit 100% as a consumer from all technological innovations delivered by all public, private companies, and any future productivity gains created by entrepreneurs and AI (which is a whole different topic we will cover another time).

Invest in the Bitcoin Index Fund, wait patiently and watch your financial life getting easier.
 

How cool is that? 🔥 🔥 🔥

I hope you enjoyed this mental model!
Feel free to forward it to your best friends.

 P.S. Here are some bitcoin onramps where you can accumulate.
If you register with the link below you will support my work as I will get a small referral fee.

• Relai (use invite code "BitcoinReady")
• Swan (best for US residents; get a dedicated contact for $100k+ annual volume)
• BitcoinReserve (best for EU & UK residents; get a dedicated contact for $10k+ annual volume)
• Amber (best for Australia)