Bitcoin Inheritance: Are you creating a Trust-Fund kid of tomorrow? | Hashpower Academy

Video Transcript:

Hello there and welcome to the Hash Power Academy, your place to learn anything to do with Bitcoin. The topic of today’s video delves into the idea of Bitcoin trust fund kids, which leans on the topic of Bitcoin inheritance. Think about it. If you are growing your Bitcoin wealth at any age, I presume you want to financially reach the level of potentially having a family. And the next step of thought from that is teaching your kids how to manage and hold and secure Bitcoin. And then the the finality of that is when you’re not involved and there is an inheritance process to pass that orange wealth, that bloodline retiring stack to your next of kin. And there are some problems in that. And we can explore history just to demonstrate that at any level of wealth, especially kings and queens, that you had that king that built the empire and then passed away and quite literally handed the keys down to the young prince and it all went wrong from there. whether it was that they didn’t assign the importance of that money to themselves because they didn’t put the work and energy in because they didn’t exist maybe at the point and this isn’t a bash on people that have inherited great wealth in fact if you are one of those people reach out because there is many things I’m looking to build and they cost a lot of money there’s lots of amazing things that come out of it so the idea of this is It’s a harsh statement, but I think it’s fair. You value nothing when you can afford everything. And you truly get boiled down to the sentimentality of things. And I think that might be one of the disconnects that if someone, especially young, is handed money with no assigned cost to the physical effort required to make it, earn it, and work for it. This is why we have this very age-old statistic that 70% of families lose their wealth by the second generation. And this gets even better interesting. 90% of families lose their wealth by the third generation. So it is absolutely fundamental that if you would like to be one of the Satoshi era bloodline retiring family names and helping your family preserve wealth into the future in a way that they can assign the true value and cost to the money. There is an interesting effort that needs to be made collectively and I’m looking for your feedback as well on this and the comments as to how we can educate our children of the future to preserve their time and energy in a way that whether it’s inherited in time and energy from someone else’s work or themselves that they they lead a path to making sure they don’t recklessly spend it and blow it on Lamborghinis, shall we say? how we can prevent this for our particular family and be the 10%. And uh not to make it all about mining, but uh the the key issue with say the fiat currency side of things is that we detached the idea of what money was from the physical world in the 70s. We disconnected our money, numbers on an account and salaries and whatnot. we disconnected it from gold and the average age that people have kids has gone up. Uh there’s all other different socio socioeconomic and political aspects to this and uh women entering the workforce at that particular point in time that’s changed things. But what doesn’t change is that we have a form of money that everyone’s detached from in the idea of just spend it now because it buys you less tomorrow. And I think that detachment from money and that concentration of wealth to those has created an accelerated amount of concentrated wealth and a wealth gap in our world that there will be a lot of Bitcoin trust fund kids as well as just normal trust fund kids shall we say or Bitcoin wallet kids. There’s several problems to this which is the question then may become how do we help our kids assign a value to the money and mining comes into this because what is Bitcoin mining it’s the educational perspective that Bitcoin didn’t just appear every single bitcoin was produced and computed with an electrical cost whether it was that at the start with Satoshi and CPU use and a very nominal amount of energy where it was high 50 Bitcoin quantity per block with a tiny amount of energy to today going into tomorrow which is a massive quantity of energy to produce a tiny amount of Bitcoin. But in that process there is a new pricing system to understand the cost of Bitcoin through electricity. And I think if the digital nature of Bitcoin creates a psychological lack of responsibility, because I’m sure everyone has just and paid without thinking twice as to, oh, let me check my bank balance. If you’re truly in a credit world, a lot of people’s consumer behaviors and spending psychology is on the fact that the detachment of the physical checking of our wallet to see if we actually have the the the money available to spend. The detachment into this physical uh physical aspect going into digital means that we now spend money in a way that can be more reckless and irresponsible because it’s just click and pay. It’s been made so easy. And I always reference the buy now and pay later, the the the misalignment between actions and consequences. But the fundamentals come back to the fact that Bitcoin is this new form of money on the internet digital and swells this wealth that means that there will be people that need to hand it off to their kids. They want they will want to whether they build and spend with it, which I think is an a smart thing to do. Um and also the aspect of what they hand down to their kids. if their kids have had an educational journey into Bitcoin and learning about the energy side as well. I feel like if kids can conceptualize physically a large mining site and the amount of Bitcoin that one large site can make can make this tiny amount of Bitcoin per machine with all the noise and energy use. I feel like there’s it it’s my biased opinion in that particular front, but I feel like helping kids understand that they’re digital orange wealth that they inherit and making them understand the the the timeline and the physical cost side of the money will just help them understand its importance to preserve into the future for their generation and so on. There’s all other different social aspects to how we spend money. But that’s come from the fact that especially the last 50 years, even longer, that we’ve got money that is not worth the paper it’s printed on quite literally. And that’s created an environment where people spend recklessly and hyper consumption and the quality of materials that the the Bitcoin hard money standard does introduce a society where people focus more on quality. Why would I let go of my Bitcoin for anything other than something that I believe is a good experience and high quality? Good food, good travel, good people, good conversations. That’s what we want. And the aspect of the end of that enjoying enjoy that life full of adventure and experience that we can afford now stacking Bitcoin in this collective investment vehicle of a planetary scale. Still that problem. How would we hand it to our kids in a way that they understand all of those pieces of knowledge that is required to not recklessly spend it? And it’s they need to assign the money to some form of physical attribute whether it’s their work, their time and energy. One idea I have is in the debt money system world of nations and governments if this is an idea and I’m very much interested to get your thoughts on this that um for example if I have a child in the future and they go and work which I would like them to do and understand their exchange of time and energy into money that if the government takes 20% of it as a tax bill I would rebate that 20%. So it’s almost ensuring that their time and energy and their work that they do is fully preserved that 100% mark. So if they want more money from Elpadre, they need to go and work harder and not have their effort to work more put them in a higher tax bracket to take more, which makes things like sugar taxes in England quite paradoxical. you’re going to apply a tax on sugar to make people consume less sugar. So why is there a tax on earning and working more? Are you trying to make people work less or the system’s messed up and we’re just trying to figure it all out? But when it comes to that inheritance aspect, another thing is I’m uh currently in discussions with a hardware wallet provider that’s got a very interesting piece of technology that I’d like to explore because the biggest issue with the handing handing off of Bitcoin wealth to our kids is truly to that piece of information, the private key, whether it’s a single private key, multi-IG setup, custodial setup that uh has a transfer and an an inheritance process. There’s all these different pieces, but I like this particular this this company that developing this technology to allow the handling of signatures and backups and all these sorts of things in a in a more human way. Raising that technical level to a more human interface is very much what is needed. Again, if any of you have particular ideas on how we can hand this digital bloodline retiring wealth to our kids and and allow those dominoes to continually fall over time, comments and questions very much for you. Thank you for listening. I hope you enjoyed this video. I did as well. And I will see you in the next video. Goodbye.