Bitcoin Course | Big Picture Basics 6.2 – Bitcoin in Finance

Video Transcript:

[Music] [Music] the Integrity of our money is the Integrity of society if the money can be corrupted then Society will be corrupted and what we mean by this is that humans have all interactions with each other we have a financial system and when you buy something money goes in the opposite direction so money has a part to play in every human interaction of trade and commerce and that’s how economic value moves around and so if you have a currency that’s easily inflatable printed out of thin air well then the people that save and spend in that currency they lose their purchasing power over time because the new currency units steal their energy because energy is neither created nor destroyed only transferred and so that’s what causes our society of inflation and that’s why our currency system now needs to change to something that’s deflationary something with a fixed Supply and that creates a new behavior of saving and spending in a way that you don’t want to escape inflation by buying up things that people may need such as property if you buy five properties you live in one the other four are an investment a way of escaping this Fiat inflation but if Bitcoin came around and it’s a better appreciating asset than those four houses why would you want the four houses if the Bitcoin appreciates in a better way what that does is open up those four properties for other people to fulfill their needs over their wants and that organizes Society in a better way a healthier money creates a healthier Society think about our financial system of loaning and lending that’s not going to change people want access to financial services if you have Bitcoin as collateral as a loaning system the collateral is going to appreciate in value for whatever you’re purchasing because Bitcoin has absolute scarcity the monetary units are in fixed Supply and as we’ve learned through all the first few modules the poll of energ underneath Bitcoin is appreciating and so bitcoin’s value per unit is appreciating and so that creates a new world where people serve their needs over their wants and that will create a healthier Society where people can access the things because the monetary premiums have collapsed things get cheaper to produce over time so why do their prices go up Fiat [Music] fation [Music]