Dan and Trent break down a very effective mental model for thinking about Bitcoin.
Episode #4: Digital Gold
- Bitcoin can be tough to explain
- “Digital Gold” is a very effective mental model. Elevator pitch for Bitcoin
- Why did gold emerge as the dominant monetary asset everywhere in the world
- Hard money humans cannot corrupt. Plus it is very durable and also divisible
- Gold worked as a store of value in the analog world, but we now live in digital age
- Demographics: world becoming more and more digital every day
- Now 8 billion people everywhere in the world can own digital gold
- The countries with the fastest growth rates need it the most
- If all Bitcoin does is become digital gold, it is a 20x return
- But Bitcoin is actually 100 times better than gold, so it is not stopping there. Bitcoin will absorb value from every asset class in the world
- Today’s song: Golden Years by David Bowie