Bitcoin is a Tesla
Bitcoin compared to traditional financial assets is the same as Tesla compared to gasoline cars. Both Bitcoin and Tesla are sustainable, require less maintenance and eliminate bullshit on a planetary scale.
Recently Elon Musk showed a new truck and a new roadster. Both are the same thing: a battery, couple of motors and a few wheels. Both are very fast, efficient and both not only beat the shit out of every competitor in their categories, but also reshape the whole industry by removing a lot of unnecessary parts and making old problems irrelevant.
Take, for example, a Tesla Semi:
- There is no transmission, no cylinders, no oil, no radiators, no shaft.
- Nothing explodes near your crotch 3000 times per minute. Instead, your car is powered by a sustainable solar energy: during the day charging stations accumulate the sunlight non-stop and during the night fill the car’s battery.
- There are brakes, but you never have to change them because you’d brake via motors most of the time, and guess what — they will return energy back to the battery.
- Four small motors are directly connected to four wheels. Not only the motors are the same as the motors in sedans (gaining from economy of scale), but they also provide independent torque to each wheel, giving better traction and better safety.
- A convoy of three trucks beats the rail: it’s not just more cost-efficient per kilometer, but you can deliver your load directly from door to door, without extra stations and re-loading your cargo from a train to a truck. You can now imagine how the entire problem of moving goods by land is going to be solved in a much more efficient manner.
Tesla Roadster is the same story, but applied to supercars. It beats all performance records, but because there is less moving parts, there is more space in the trunk, you can seat 2 more passengers and you can make 1000 km on a single charge. Oh, and it costs 5 to 10 times cheaper than all supercars that it outperforms. In other words, your non-toy everyday car can be a supercar. Even their SUV outperforms a Lamborghini.
How does it apply to Bitcoin? Bitcoin is also like a highly efficient battery with very little moving parts.
- Bitcoin is a very efficient battery: your stored value is impossible to siphon away via inflation and very hard to confiscate directly.
- Bitcoin is a very cheap battery: your stored value does not need maintenance or annual fees. It just sits where you put it and does not occupy any space.
- Since everyone can save money, there will be no need for consumer credits with their invasive personal records that leak all the time.
- The need for specialized insurance will be reduced to very low-probability issues. When you have more savings, you can afford higher deductible for your car insurance and pay less monthly, which helps saving money even better.
- Personal computers enable such a high level of security, there is no need to punish merchants with costs of fraud: payments can be settled much faster and without the need for payers to provide tons of personal information that is eventually leaked too.
- As money appreciates rather than depreciates, people will be more careful at spending it: the demand shifts towards higher-quality, longer-living products. You know, like Teslas.
- There will be less VC bullshit like “99% startups fail, so we’ll spread funds thin among 1000 startups”. The money will not grow on trees anymore. Most startups will start with their own savings and will provide actual value to actual consumers, because people are not going to part with their bitcoins that easily. Instead of trying to satisfy 3 rich investment “partners” (who just want to resell their stock to the bigger fool) and share your business with them, you will have 100% of your own business and will have to satisfy thousands of diverse customers who do not have any hidden agenda.
- People will work less and smarter: everyone wants to earn sound money, but having real savings, everyone can afford more time for personal growth and family. Like working 30 hours a week instead of 60. And with less stress and a higher self esteem. People can make families at a younger age, with less health issues. Kids will grow with more active parents that allocate more attention to them.
- Finally, Bitcoin works without kings and politicians: as a result, nothing will explode near yours or anyone’s crotch, just like in a Tesla. Who would spend money that can only be earned, not stolen or inflated, on purely destructive activity? Governments won’t be able to maintain huge armies and be at constant war all over the world: they’d have to start knocking on everyone’s door for extra cash.
Just like Tesla changes the paradigm of transportation, Bitcoin changes the paradigm of finance and security: many existing problems and solutions simply become irrelevant.