Bitcoin: The Great Demonetization
Bitcoin will become the world's primary monetary index by absorbing the monetary premium from utility assets, allowing them to return to their natural purpose.
The Great Absorption
As Bitcoin emerges as the superior store of value, it will naturally absorb the monetary premium currently trapped in other assets. This isn't just about price appreciation - it's about allowing the entire economy to function more naturally.
The Demonetization Cascade
This absorption will occur in stages, as Bitcoin demonetizes various assets:
2. Then, artificially monetized property (real estate)
3. Next, inflated equities (stock market)
4. Finally, other stores of value (art, collectibles)
Each stage releases these assets back to their utility function
The Housing Revolution
The impact on real estate will be revolutionary. As Bitcoin absorbs the monetary premium from housing, we'll see:
• Investment firms releasing hoarded properties
• Young families able to afford homes again
• Property developing based on real demand
• End of the "housing as investment" paradigm
The Equity Liberation
Company stocks will return to representing actual business value rather than inflation hedges:
• Companies focus on productivity, not financial engineering
• Stock prices reflect business fundamentals
• Investment based on value creation, not monetary preservation
• End of the everything bubble
The Resource Optimization
As Bitcoin absorbs monetary premium, resources will be allocated more efficiently:
• Commercial real estate finds true market value
• Art returns to cultural significance
• Commodities price on utility, not speculation
• Capital flows to productive uses
The New Paradigm
This great demonetization will create a cleaner separation between:
• Utility Assets: Priced on actual use value
• Productive Capital: Focused on value creation
• Human Progress: Visible in falling real prices
The Economic Clarity
With Bitcoin as the world's monetary index, we'll finally achieve clear price signals across the economy. Value will flow naturally, resources will be used optimally, and human progress will be properly reflected in falling real prices of goods and services.
This isn't just an investment thesis - it's the path to a more functional, efficient, and equitable economic system.