93. The resilience of stock-to-flow with PlanB

In this episode, Saifedean invites back PlanB to back discuss the resilience of his stock-to-flow bitcoin pricing model in the face of global economic changes. They talk about the range of events that have impacted the bitcoin price since the model’s inception – Covid lockdowns, MicroStrategy, Elon Musk, China mining ban, El Salvador – and why the price has largely stayed within one standard deviation of the model’s baseline throughout. They also discuss institutional interest in bitcoin, which countries might follow El Salvador in adopting bitcoin as legal tender, and how QE and lockdown-created supply chain issues are causing global price inflation. In the Q&A, PlanB answers questions about money printing, whether S2F should be used to trade, and bitcoin’s short-term price outlook.

 

 

 

 

THE BITCOIN STANDARD TOOLKIT

 

 

The Bitcoin Standard Toolkit is a selection of the Bitcoin services I recommend to readers and learners on saifedean.com, as they upgrade from The Fiat Standard to The Bitcoin Standard.

 

NYDIG  

 

 

NYDIG is a leading full-service financial services firm dedicated to Bitcoin, applying institutional wisdom and ingenuity to help clients access the unrealized potential of this emerging asset class. NYDIG offers the full suite of financial solutions needed for financial institutions to access Bitcoin, from custody, execution, financing, treasury solutions, integration partnerships, and more.

 

 

Check their website here: https://nydig.com/

 

 

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Cyphersafe 

 

 

To secure your bitcoins, it is important to keep your seedphrase backed up safely, and for that, I highly recommend using the CypherWheel seed storage device, a gorgeous and brilliant sturdy piece of low time preference engineering from a fourth-generation machine shop in Maine.

 

 

Check their website here: https://cyphersafe.io/

 

 

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OKCoin

 

 

Whenever someone asks me how to invest in Bitcoin, my advice is to accumulate bitcoins periodically for the long run, or dollar-cost averaging. When you buy every day, week, or month, you play bitcoin’s volatility to your advantage. In the long run, this strategy will outperform every other bitcoin investment strategy, except for dumb luck, and lying about timing the market. For dollar-cost averaging, I strongly recommend OKCoin, the exchange with the lowest fees for recurring purchases worldwide. OKCoin is also the bitcoin exchange accessible in the most countries around the world.

 

 

Check their website here: https://okcoin.com/

 

 

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Nodl

 

 

I believe it is really important to run a node, but I don’t recommend running it on your work or personal computer, as it can compromise the performance of your computer and, more importantly, the security and privacy of your bitcoin node. A far better solution is to buy a dedicated hardware node, and for that, I highly recommend Nodl.

 

 

Check their website here: https://www.nodl.it/

 

 

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Coldcard

 

 

My hardware wallet of choice is the Coldcard. I strongly recommend only conducing bitcoin trades on computers that are dedicated to bitcoin and cannot connect to the internet. I like the Coldcard because it is a contained machine optimized for bitcoin and bitcoin only.

 

 

Coldcard is basically a small computer that can only do bitcoin, which makes securing it more straight-forward. Use the code BITCOINSTANDARD on coldcardwallet.com to get a 5% discount. 

 

 

Check their website here: https://coldcardwallet.com/

 

 

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CoinBits App

 

 

CoinBits rounds up your everyday credit card purchases to the nearest dollar and invests the extra cents. 95% of your Bitcoin is stored offline for your safety.

 

 

By making micro-investments over time you can use one of the most successful investment strategies known to mitigate the risk of loss called dollar-cost averaging.

 

 

Check their website here: https://coinbitsapp.com/