If there is one book you should read about Bitcoin, what would it be?
It’s this one.
Bitcoin: Hard Money You Can’t F**k With by Jason A Williams makes a compelling case for Bitcoin. If you’re not a Bitcoin Maximalist – someone who believes Bitcoin is the only digital asset the world needs – before reading this book, you might just turn into one afterwards.
It’s more than that, though.
Besides being bullish on Bitcoin, it’s a fascinating journey down the crypto and financial rabbit hole. What is money? What is value? Can Ramen be a store of value? When the government prints trillions of dollars, are you savings really savings? How does one buy $425 million worth of Bitcoin, and why would a company want to convert all of its cash to Bitcoin? Why shouldn’t you buy coffee with Bitcoin?
And are you still early?
Yes, is the short answer.
Everyone thinks they have missed the boat. If you’re reading this in 2021, 2022, 2023, or 2024 you’re still early. This is a long game. We’re talking about the next global reserve currency of the world. To put it into perspective, the total wealth of the world’s billionaires is 8 trillion dollars. What happens if they start allocating 1% of their wealth into Bitcoin? Gold is worth 9 trillion. If Bitcoin became the gold equivalent, each bitcoin would be worth $500,000.
A bullish case, certainly. And it is well argued.
What Is The Bitcoin Halving?
I could pick out many aspects of this book, but here’s a look at one of the more cryptic yet prescient concepts, especially during a time when world governments are rapidly inflating the money supply with seemingly no end.
Bitcoin is halving.
A Bitcoin halving event is when the pace of Bitcoin production is cut in half. This happens about once every four years until all 21 million bitcoins are mined. Even as demand may be rising, the supply of newly minted Bitcoin decreases.
The key concept of Bitcoin is that it is scarce. There will only ever be 21 million Bitcoin. Throughout history, humans have always chased what is scarce. Sound money is scarce.
In a world where value is eroded by central banks, Bitcoin occupies the hedging space traditionally dominated by gold. But it is so much more than gold. “Gold is never going to get any smarter“, quips MicroStrategy CEO Michael Saylor.
Gold was once confiscated. Gold production can be ramped up and down at will. Bitcoin cannot be confiscated. No one can inflate it. It’s portable.
And Gold doesn’t provide the digital rails for a future global financial system. It’s potentially extremely valuable. And that’s one good reason never to buy coffee with Bitcoin.
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Podcast Interview with Hard Money author Jason A Williams: