Would you Buy an Irredeemable Bond Paying 15%?

Anyone for an annuity? Perpetual Bond? Given the Bitcoins growth over time should exceed 18% that would leave a good margin for the bond issuers. That 18% number is based on the bitcoin having and demand staying were it is. In other words the price doubling every 4 years, which I would say is the lower bound of possibilities. Historical gains in bitcoin are currently between 120% and 200% per year. 

Current annuities in New Zealand are paying out 2.7% so it would be very competitive just to get 15%..

The Price Plus Some Sats

In the future I predict houses selling for less than there actual sale price as bitcoon is paid directly to the owner. Deliveries are sped up with extra sat sweeteners. Bitcoin tips are most appreciated. The government let's it happen so they can keep their cpi figures low. 

Next They Will Blame Inflation on Bitcoin

First the electricity prices go through the roof and keep climbing. People say it's because of bitcoin mining and because of all the bitcoin millionares. It's not.

The cost of electricity will skyrocket in dollars, but priced in bitcoin it will be flat. Electricity prices may even start to take on characteristics of the 4 year bitcoin cycle.

The Value of Your Salary

With the value of your bitcoin stack going through the roof, possibly up or down more than your whole years salary in a single day, the true value of your job and what your doing with your days becomes a bewildering question. The bitcoiners conventional wisdom has been "don't quit your day job" but what are the numbers around it? As more and more OG bitcoiners fall victim to derangement syndrome we best find out how to tamper the psychological effects of rapid wealth increase with math.

The value of time is important for this calculation. Normally people use the interest rate to define this, you could generously use 3% at the moment. A simple calculation would be your salary / the interest rate ie 100k/0.03= 3.3 million.  Basically you would need this much money in the bank to collect the same amount annually as you would working.

A job is a little more than this though as the contract often doesn't end at the end of the year and you might realistically expect for the wage to be increase by the rate of inflation each year. If you do a good job you can reasonably expect to be able to hold onto your job for 20years or for the rest of your working life. The new calculation would be calculated like that of an annuity

"P = PMT x ((1 – (1 / (1 + r) ^ -n)) / r)". 

• P = the present value of annuity
• PMT = the amount in each annuity payment (in dollars)
• R= the interest or discount rate
• n= the number of payments left to receive

Lets also add in Inflation as discussed above and r = R-I

• i= the government inflation number

The present value equals the annual salary times the compounding sum of future payment divided by the interest rate minus the inflation rate. 

Here we get 

100k x ((1-((1/1(1+(0.03-0.058)))^-(65- age))/(0.03- 0.058)

= $2 million bucks

This is with generous interest and inflation numbers, they should actually be closer to zero. No wonder people are feeling a little bit trapped, because you would need this much spare cash to get out of the rate race. This figure goes up even further when inflation increases and the interest rate decreases and I would argue that it is a mechanism of modern slavery. As a bitcoiner however, you can begin to think about this differently. You may want to swap the interest rate number for the average appreciation of bitcoin versus the dollar. 

At 200% all of the sudden your job is worth a lot less. This brings the figure to $50k ie the value of a job is worth about 6 months of savings! 

If you want to be conservative you can change the return to 20% you get $496k something that is far more attainable. 6.05 bitcoin or just a little bit more than you need to gain genetic immortality. If you bought bitcoin years ago and held that could be just a slice of pizza. $6k USD at the all time high of 2013.

Any way we calculate it we can see that the value of your job, your regular salary, is reduced significantly once you hodling bitcoin. But what about stacking sats? If you don't have a job how do you stack more sats? These calculations ignore the value of your savings and assumes your sitting on a stack of coins and selling them as you need. Well that's another post altogether. Try putting 20-200% returns into your retirement calculator. It's parabolic.

$15k worth of bitcoin saved every year for the next 30 years comes with the 10 year historic bitcoin appreciation rate of 200% net you a cool bunch of zeros which will not even fit on the calculator. There is a number after quadrillion called quintillion. 

Even with 20% it comes to 17.8million

For those who are feeling deranged, converting your salary to savings in bitcoin can help keep the focus. In the words of Matt Odell, "stay humble, stack sats". It makes it more worthwhile to work.

 

Live Forever in the Bitcoin Blockchain

The cost of immortality, the possibility to transcend time, depending on your philosophical perspective ,could now be measurable. If you believe the bitcoin blockchain can last forever then you just need to get your DNA sequenced and save your DNA in digital form  on the bitcoin blockchain. 

We have a few moral issues that we brush over here, the validity of DNA preservation and privacy along with the scarcity and abuse of blockspace, but lets not dwell on it. It costs only around $1000 to get your genome fully sequenced. So if you want this its not to hard. Finding a permanent secure database that you can rely on being around for ever and accessible for everyone is where the real challenge lies for those inclines on escaping a metaphorical oblivion.

The bitcoin blockchain is a permanent database for all, but it doesn't like to hold too much information. So firstly, to find out what it might cost and if it is possible, we need to know how many kb are needed to hold human DNA sequence? Well quite a lot, 725mb at most but thankfully this can be losslessly compressed to only 4mb using, our old friend clever cryptography. This still will not fit in one block, but it could be split over many with the details of the file locations detailed. With these data sizes you could get the data saved in a tidy little package on your birthday.

So saving your DNA on the bitcoin blockchain is feasible, but what will it cost? Considering the current rates and fee market dynamics you do currently need to be pretty flush with bitcoin to do this. If you had millions you could conceivably do it in around an hour. The cost in this case is not that predictable and could skyrocket. As a normal person however, if we tried to do it at the current kb transaction rate with a longer time frame and without disrupting the balance, it would cost say 0.0012 btc per Kb or 1.2 btc per MB. That's a grand total of around 4.8btc for the possibility of clone me into infinity, its a lot osf sats but not such a bad deal if you're trying to take over the world.

Mt Gox is Heating Up

Fortress are offering 80% on Rehabilitation claim values

Coinlab are still evil but may be relenting. 

https://blog.wizsec.jp/2021/01/earlier-mtgox-payouts-coinlab.html?m=0

https://blog.wizsec.jp/2021/02/mtgox-claim-calculator.html

Simple Model for Import Export Payments On Chain

I import product for business all the time and i am often forced to use the existing and antiquated system It is a nightmare. Requires a lot of trust, its slow and expensive. Normally paying USD in advanced is the requirement and at the moment you may wait months for your product to arrive with little recourse if its not right. 

There is huge prospect for bitcoin here. Taking advantage of the transparent block chain is also an advantage as when you transfer through the bank you have to trust a long line of intermediates with your money and you never really know where it is when it in limbo. Suppliers are forced to accept unknown exchange rates. Shipping companies have to do a lot of documentation so that part payment plans can be enforced.

So you could make the one transfer in bitcoin it would be much easier and faster, but you can also do lots of new more advanced payment plans better. Here's the plan for a self managed deposit plan.

Three part payment plan for importers and exporters

Agree on the total value at the time of purchase order as measured in bitcoin. eg 20,000 sats This could b e for FOB or delivered pricing. 

Stage 1. Paid to start the order

Stage 2. At some stage when shipping documents are received, eg: Loading onto ship confirmed.

Stage 3. On receipt of goods in good condition at your shop.

On the purchase order a you print a public address where the full sum of funds are sent. this way the supplier knows that you have the money available and they can see on the block chain if you move it. Its easy to do this by just creating a new wallet address in your bitcoin wallet and it will only take one transaction. 

When you transfer the bitcoin from each stage you do it from this bitcoin address.

Its that easy. 

I should really do a flow chart process for you  like i did for my shipping or container tracking and quality assurance stickers in a previous post here.