We all want to invest in something that promises great returns. But we never realize that investing today is all running on money created out of thin air. In other words, our economy, as regulated as it is, actually runs on a vicious cycle of debt. Luckily, there is a way for us to save up without the hassle of dealing with banks. Bitcoin has proven countless times to be a viable option to increase purchasing power. Today, Jimmy Song sits down with us to share his experience getting into the cryptocurrency space and how it had evolved since he started. He also explains how the concept of “centralization” hurts everybody, what happens to the international economy when the dollars’ value dilutes, and how investments based on centralized currencies run on debt.

Also, learn why Bitcoin is one of the best investments you can ever make in this episode of Wealth Science with guest Jimmy Song!

Fiat Money, Fiat Investments

The current mentality around investing is a complete anathema, as shown repeatedly in economic history. For instance, the entire profession of a financial advisor did not exist when gold was the standard. After all, no one needed someone to tell them to keep their money and gold because people already did that. Hence, their generation would have more purchasing power every year. But as years passed, the monetary system had been corrupted, with money being created out of thin air. And as a result, our generation of “investors” only manage their finances to keep up with the monetary expansion. In other words, investing becomes a fiat job that only exists because of fiat money. And in a way, the investments we make in assets such as real estate and stock run on debt.

Jimmy explains it best with an example in real estate. Let us say you plan to put down 20% of what you saved up. And so, you bought 5x leverage because you expected to get five times the amount of value and exposure you invested. However, if the housing market crashes, you and everybody else on 5x leverage would lose everything. The same can be said with any other assets based on centralized currency. If a market crashes, anyone who invested in it suffers. Hence, the government and other centralizing organizations make sure that it is regulated. But ultimately, it is a fiat system running almost entirely on fiat money, which means the economy is all based on debt. Then again, cryptocurrency such as Bitcoin is both digital and decentralized, which allows us to save money, increase purchasing power, and even start a business.

Tune in as Jimmy shares the best way to invest in cryptocurrency in this episode of Wealth Science!

About Jimmy Song:

Jimmy Song is a Bitcoin educator, developer, and entrepreneur. Jimmy is the author of Programming Bitcoin and The Little Bitcoin Book. In addition, he is a Bitcoin Fellow at Blockchain Capital and an avid open source contributor, mainly in Bitcoin. Jim also serves as a lecturer at the University of Texas, a speaker at Bitcoin conferences, and the instructor of a 2-day workshop for programmers, Programming Blockchain. He also has a passion for making more developers for the ecosystem. In the end, his goal is to bring sound money to the world. After all, Bitcoin is the one chance at defunding and decentralizing the power of the oligarchy.

Outline of the Episode:

[01:31] From your typical coder to a Bitcoin developer

[03:40] How cryptocurrency evolved in the last decade

[05:33] Understanding the concept of “centralization”

[07:17] How inflation hurts everybody and its common misconception

[11:10] Bitcoin being a digital and decentralized currency

[14:07] The problem with creating money out of thin air

[16:41] How fiat money dilutes the value of the US dollar

[19:50] What happens to other countries when the dollar expands

[23:50] Using the Bitcoin system to manage “blockchains”

[28:07] How “DeFi” is neither decentralized nor finance

[31:30] The best way to invest in cryptocurrency such as Bitcoin

[34:06] How investments based on centralized currencies run on debt

[38:22] Jim’s thoughts on the mining process behind Bitcoin

[41:45] Where will cryptocurrency be in the next ten years

Resources:

Jimmy Song on LinkedIn

Jimmy Song on Twitter

Programming Bitcoin

Only The Strong Survive by Allen Farrington and Big Al

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