I once heard somebody saying: divide everything by 21 million. I did not understand.

This means: the market cap of all stocks, market cap of all bonds, the market cap of all money in the world, the market cap of all minerals, all gold. The total global population.

Divide everything by 21 million. Then you will get the value of 1 bitcoin. If you divide everything by (21 million times 100 million) you get the value of a sat.

Because all those items can grow and the number of sats or bitcoins cannot grow indefinitely, your sat or your bitcoin value will grow.

Why is the Mona Lisa so valuable?

Because there is only 1 of it? Yes, but also because you cannot create more of it. If you could create 1000, 1 million Mona Lisas exactly the same like the one we have, the value would drop instantly.

Netflix videos’ price will drop. Because you can create videos more easily. The moment AI generates videos and characters are not humans, Netfix subscriptions price will drop. Because you can create more of it relative to the dollar.

A price is like “how much of your stuff relative to my stuff here”.

Your 1 villa (your stuff) against my dollars (my stuff) here. Now I have to bring 1 million dollars, my stuff so you give me your stuff. But in 10 years I have to bring 5 million of my stuff, tge dollar.

Why?

Because we can create as many dollars like we want (we being the FED, Central bank). That is why the dollar is eroding in value. And your villa there is only one of it in tgat neighbourhood with that swimming pool.

Lets compare the dollar to the bitcoin, the sat, the kilo, meter and liter. So you see the house of cards.

Now bitcoin and the sat.

Why is the value in dollars going up? Yes it can fluctuate in the short term. The sat is like 1 meter or 1 kilo or 1 liter. It is not like 1 dollar.

Imagine that 1 meter would be changing all time. 1 meter now is less then 1 meter 10 years ago. How would we measure things, roads, buildings? Everything would collaps. That is the house of cards we have been building with fiat. The 1 dollar, that everybody thinks is the 1 meter standard in the fiat real estate business and in the fiat road business and the fiat construction business is not stable. It is not a measure like 1 kilo, 1 meter and 1 liter. Imagine the FED of the Measure business, coming every quarter and saying: guys 1 meter is now 105 cm! And now next quarter we expect to stop increasing it. We only increase it with 1 cm. So it will be 106 cm! Everybody would scream hell no. Every building would collaps. These are laws we created, stardards. During covid the Fed actually said: 1 meter is now 130 cm. He increased or devaluated the stardard by 30%. It could also mean 70 cm. He dropped the value. So that is why we need a uniform measure. Bitcoin or Sat. Something that doesn’t fluctuate. The people not understsnding this are living in a house of cards built with stones and measures that are changing constantly. Where 1 kilo, 1 meter and 1 liter are changing. The house will therefore collaps.