Misir Mahmudov Bitcoin Time

Bitcoin & Time | Misir Mahmudov on Tales from the Crypt

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Key Takeaways

  • Every day you exchange finite time for pieces of paper created out of thin air
    • Ask yourself: why would you exchange your most precious resource (time) for something whose supply is virtually infinite?
  • Compounding a seemingly unremarkable 5% inflation rate means your money loses 50% of its value in under 15 years
    • Your years are literally being thrown out of the window because your savings are not working properly
  • Shrinkflation is insidious, “As more money is created and as a currency loses its value over time, producers of goods reduce the size and the quality of their products in order to somewhat maintain the prices”
    • You think prices haven’t risen but you are getting less for your money
  • Misir recommends Amazon publishing for authors
    • It’s a smooth experience, and Amazon will print, distribute, and deliver without you having to call or email anyone

People Mentioned

Intro

Bitcoin is Hard to Explain

  • Bitcoin is a profound and unprecedented piece of innovation
    • And you will lose people by the time you explain the cold hard facts
  • In addition, a lot of misinformation is communicated about Bitcoin
    • People have prejudices about bitcoin, which makes them unreceptive
  • Explanations of bitcoins need to be relatable
    • People care about different things and “In one way or another, bitcoin can help every single person” – Misir Mahmudov

Bitcoin is a Collection of Memes

How does Bitcoin Save You Time?

  • Time is your most scarce resource
    • On average, humans have 600,000 hours, 70 years lifespan
    • Ponder this: you don’t even have a million hours
  • Every day you exchange finite time for pieces of paper created out of thin air
    • Ask yourself: why would you exchange your most precious resource for something whose supply is virtually infinite?
    • For this reason alone, you should learn about bitcoin and its similarly scarce supply
  • As a result of the unlimited money supply, we spend a lot more of our lives working than we should be
    • Compounding a seemingly unremarkable 5% inflation rate means your money loses 50% of its value in under 15 years
    • Your years are literally being wasted because your savings are not working properly

Broken Money is The Root of All Problems

  • Jeff Booth talks about how central banks use exponential inflation to prevent abundance in the broader economy (Read the Podcast Notes)
  • People have many frustrations and are looking for someone to blame
    • It all comes down to “Fix the money, fix the world” – Marty Bent
    • “Bitcoin fixes literally everything” – Misir Mahmudov
  • Economics is the study of the allocation of scarce resources to satisfy the unlimited wants
    • It has been corrupted by “infinite QE” which distorts all market signals
    • Entities that should fail have extended life spans and keep sucking time and resources

Time is Money

  • The movie In Time portrays a future where time is used as money, everyone has a clock on their arm saying how much years, days, and hours they have left
    • The rich have hundreds of years to live while the poor live day to day
  • In one scene, the main character was frustrated when he discovered the price of coffee went up from 3 minutes to 4 minutes
    • The vendor gives a cold response: “you want a coffee or you want to reminisce”
    • This scene is the essence of how inflation is theft of time
  • In the face of all the doubt, Bitcoin’s monetary supply is certain

Shrinkflation: Invisible Inflation

  • Put simply: “As more money is created and as currency loses its value over time, producers of goods reduce the size and the quality of their products in order to somewhat maintain the prices”
    • Shrinkflation is insidious, you think prices haven’t risen but you are getting less for your money
  • To illustrate, a Snickers bar in 2014 weighed 232 grams and cost £0.74
    • In 2018, it shrunk to 167 grams and cost £1.26 (28% smaller and 71% more expensive)
    • This happens gradually over the years, we only notice the 71%, not the 28%
    • Additionally, it’s not as easy to measure the quality of ingredients
  • Every year, CPI is adjusted to reflect “consumer habits”
    • This is a grey area that can fit any agenda and is used to hide the true inflation rate
    • For instance, switching out a quality ribeye for soy meat would reflect no inflation

This Book Will Save You Time

  • The book aims to provide an accessible point of view for newcomers to Bitcoin
    • Misir calls the book a “Bitcoin primer disguised as a self-help book”
  • Misir recommends Amazon publishing for authors
    • It’s a smooth experience, and amazon will print, distribute, and deliver without you having to call or email anyone
    • Amazon takes a 40% cut
  • Revenue from the book will be donated to Bitcoin developers
    • It’s a great way to spread the message, people can learn about something and donate money to develop the system at the same time
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Notes By Mostafa Khaled

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