Wealth Is Humanity's Energy Bank

Every ounce of human effort and achievement throughout history required energy.

Humanity used that collective effort to progress from roaming nomads, to agrarian farmers, through sprawling industrialists and now AI-empowered information workers.

Our ability to store this energy became known as wealth.

Wealth began as a Winter’s worth of food (a bank that really matters). Then money was invented which accelerated economic development and unlocked even more efficient forms of savings and investment.

Capital formation began to accelerate as we pulled evermore gold, silver and other precious stones, metals and minerals from the land. We fused language and math to spawn concepts, and then used those concepts as cognitive bedrock to form the foundation for modern industry and empire. We used technology to change ourselves and the world around us, building wealth at greater and greater rates.

Today the estimated total global asset value is $900 trillion. This figure encompasses a variety of asset classes, including equities, real estate, bonds, and money.

That’s a lot of energy we’ve accumulated.

The global economy faces challenges due to its reliance on imperfect assets. Traditional financial and physical assets are susceptible to degradation and loss of value over time due to factors like inflation, political instability, and the inherent limitations of physical objects.

We are losing our wealth because we have imperfect vehicles to store it.

All that energy we worked to capture and refine surrendered to the void. We harnessed the sun, the animals, the forces of nature and mankind’s ingenuity to form this unprecedented sum of wealth… and we lose it 24/7 across several dimensions that we’ll explore in a minute.

Traditional forms of capital, including equity, credit, currency, and property, are inherently limited by physical constraints. These constraints expose them to risks such as inflation, degradation, and political turmoil, ultimately leading to a decline in value over time. The vast majority of these assets come with management fees and other overhead related to them. These fees and friction eat away at your value incessantly.

I view Bitcoin as the best battery for humanity to store the energy we are collectively generating and refining.

Michael Saylor, the source of these awesome images, defines digital capital as "the first occurrence of pure economic energy in the history of humanity". It represents a revolutionary shift from traditional financial and physical assets, offering a superior form of wealth preservation due to its unique characteristics.

Bitcoin as a Battery

Bitcoin's key characteristics – being "immortal, immutable, and immaterial" – are the foundations of its superiority as digital capital. These attributes make it resistant to traditional forms of degradation, potentially offering a solution to the long-standing challenge of wealth erosion.

Physical assets are inherently vulnerable to the forces of entropy, instability, and high maintenance costs, all of which contribute to a decline in their value over time. This vulnerability stems from their tangible nature, making them susceptible to damage, decay, obsolescence and dozens of other value decaying forces.

Goods like exotic cars, yachts, and even real estate necessitate substantial expenses related to insurance, storage, maintenance, and taxes, ultimately eroding their value proposition for long-term wealth preservation. Just look at this list of financial friction that plagues us:

In contrast, digital assets like Bitcoin are positioned as a superior alternative due to their inherent characteristics of being "immortal, immutable, and immaterial." Unlike their physical counterparts, digital assets are not subject to the same physical limitations, making them resistant to degradation and potentially offering a more reliable store of value over extended periods. The sources argue that this fundamental difference allows digital assets to transcend the constraints of traditional investment options, potentially revolutionizing the landscape of wealth preservation.

Bitcoin is designed to last indefinitely, making it a superior store of value compared to physical assets that degrade over time due to entropy. The fixed supply of Bitcoin also makes it a scarce commodity, unlike traditional assets.

Bitcoin is the foundation of the "internet of money" a growing ecosystem of products, services, and companies. As the dominant global digital asset network, Bitcoin is well-positioned to benefit from the continued growth of the digital economy.

These digital assets, Bitcoin being the most biggest in terms of both user adoption and market capitalization, “live” a lot longer thanks to this lack of friction.

Bitcoin sees direct gain from advances in technologies like AI, which are expected to drive economic growth and productivity. Those enhancements in operating efficiency will translate to increases in share prices, the value of digital assets and the size of the economy as a whole.

AI can even add value to your BTC directly by lowering energy cost and making contributions to improvements to compute, storage and other dimensions of the digital ecosystem.

Bitcoin isn't just a digital currency; it's the ultimate energy bank for humanity. By storing our wealth in Bitcoin, we protect the fruits of our labor from the erosive forces that plague traditional assets. This opens up a new era of financial sovereignty and wealth preservation for individuals and societies alike.

Because everyone craves sovereignty there are already 220 million Bitcoin holders and 420 million crypto users worldwide. Those numbers are increasing as institutional and retail adoption further strengthens Bitcoin's position as a store of value. Institutions recognize Bitcoin's uncorrelated nature to traditional assets. BTC has become increasingly used as a hedge against inflation and economic uncertainty, a valuable addition to diversified portfolios. Financial giants are investing in custody solutions, trading platforms, and derivatives, making Bitcoin more accessible and legitimate for mainstream investors.

As more people use Bitcoin, its network becomes more secure and valuable. As more nodes, active users and holders join a network, its value grows exponentially. Each new Bitcoin user increases the potential number of transactions and connections, creating a positive feedback loop. A larger network means more miners securing the blockchain. This makes it harder for malicious actors to disrupt the system, further solidifying Bitcoin's reputation as a reliable store of value.

The cascading impact of increasing Bitcoin adoption paints a picture of a revolutionary future. While challenges remain, the potential for Bitcoin to transform the global economy and empower individuals is undeniable.

It was always our energy that was stored inside our wealth.

Now we can wield it directly.

Don’t lose your wealth to entropy. Don’t enrich money managers, property managers and other custodians. Don’t watch the entire history of your family’s work transfer to the void.

Become sovereign with Bitcoin.

👋 Thank you for reading Wealth Systems. I started this in November 2023 to share the systems, technology, and mindsets that I encountered on Wall Street.

💡The BIG IDEA is share practical knowledge that can be applied toward the development and refinement of wealth building systems.

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