Yesterday on The Last Trade we had a great conversation with Matt McClintock, Founder and Executive Managing Director at Bespoke Group, about why it is going to be very important for bitcoiners to set up trust structures to protect their wealth over multiple generations. I highly recommend that anyone who isn't up to speed on trusts and how they can help protect your wealth check out the episode (writing from my wife's iPad and can't figure out how to hyperlink, so search "The Last Trade on your favorite podcast app or on YouTube.)
While the trust alpha was illuminating, I thought Matt's insight into how some of his high networth "fiat whale" clients are beginning to come around to bitcoin was extremely encouraging and validates what we wrote in the rag on Tuesday; it is becoming abundantly clear that central banks and governments the world over are losing control and bitcoin is very well positioned to benefit from the chaos. With Japan losing control of its yield curve, the Treasury looking to issue $1.85T worth of fresh debt through the rest of the year, interest expenses exploding above $1T, and energy inflation rearing its head again it is becoming harder and harder to believe that the Fed is going to successfully pull off a soft landing. It seems like, at least according to the anecdotes that Matt shared, some of the people with the most to lose in terms of wealth are beginning to wake up to this reality and recognize bitcoin as their "flight to safety" option.
This makes perfect sense if you understand how bitcoin works. In a world where central banks and governments are increasingly debasing their currencies, accumulating obscene amounts of debt, and actively moving to confiscate wealth or prevent people from accessing their money an apolitical peer-to-peer distributed monetary system that includes a hard capped supply and eliminates counter-party risk is a no brainer. Those with a lot to lose are beginning to recognize this, which makes sense when you consider the fact that most of them accrued their wealth by being smart and being able to recognize trends and market inefficiencies. Bitcoin is a natural fit for this class of people. The best fit if we're being honest with ourselves.
I don't think people are fully understanding what is happening behind the scenes at this current moment. This bear market has been brutal and drawn out, but I've become convinced that the wheels are being primed for a bull run the likes of which we have never experienced since bitcoin launched in 2009. The combination of central banks and governments fumbling the ball, people losing faith in institutions at an increasing pace, and the bitcoin protocol and the layered stack being built on top of it reaching a point of sufficient maturity is setting the scene for a flood of capital into bitcoin that is almost hard to fathom. Combine all of this with the block subsidy halving that is coming in ~8 months and the fact that hodlers are only becoming more certain about their positions and we are officially cooking with jet fuel. Mentally prepare for the face ripping rally. Your Uncle Marty sees it coming around the corner.
I love making my sons laugh.
Enjoy your weekend, freaks.