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BR #25: How to value oil & bitcoin?

Sep 24, 2023

(1-minute read)

ANNOUNCEMENT: This Wednesday, 12:30 Lisbon time at the Freedom Summit 2023, I will deliver a keynote speech titled: "Bitcoin: the key to unlocking wealth, freedom, and sovereignty". The event is free to attend, but if you want to get all recordings you can use a special 30% off promo code: summit99. The summit will be particularly valuable for anyone who wants to build a location-independent lifestyle.

On to today's topic of Oil & Bitcoin:

What is the value of a bitcoin?

What is the value of gold?

What is the value of oil?

The value of a steak?

The value of air?

Is there a formula to calculate the value of any of the above?


Value only exists in our minds.

Something can be extremely valuable to you in one context and completely worthless in another context.

Let me give you an example.

  • In the 17th century oil was considered a dirty nuisance. If you had oil on your land, its value would be lower than that of a pristine clean land lot without oil.
  • In the 21st century finding oil in your backyard will make it more valuable than if you had no oil.

What changed?

Nothing changed.

Oil was the same in 1600 and in 2000.

But people’s knowledge about oil and how to use it changed.

What is even more fascinating is how in April 2020 crude oil futures dropped from $50 to -$37 per barrel only to then and then rise up again to $40.

This was triggered by the Covid outbreak, which caused a sharp drop in global oil demand, an oversupply of oil in the market, and a price war between major oil-producing countries.

Once again: the oil itself was the same all along.

But the circumstances changed and therefore we humans changed our need and valuation of oil extremely fast.

I can find you thousands of similar examples, but let’s get back to the topic of this newsletter.

One bitcoin in 2014 was the same as one bitcoin in 2016, 2021 and 2023.

It’s properties have been the same. Yet, its value has been chaing a lot.

Why so?

Similarly to oil, people learn about Bitcoin‘s properties, they realize how to use it.

Some even understand it is the best money ever discovered. And so they buy it.

These people value Bitcoin at $10,000,000.

They would not sell it for less.

Others think its value is $10,000 and they wait to buy BTC at $10k.

And yet others value BTC at zero. So they don’t buy it.

Guess what will happen when they realize that the “money in their bank accounts” is neither theirs nor it is available for withdrawal?

All of a sudden they will start valuing bitcoin way higher than before.

They will sell anything they have to get bitcoin.

Value is subjective.

  • Some assets that are valuable today will be worthless tomorrow.
  • And others will become way more valuable tomorrow.

In the Bitcoin Masterclass, I teach from A to Z why many people will value bitcoin way higher than they do today. And then I walk you step by step through the actions you need to take to buy bitcoin and secure your savings, family, and business.

Whenever you are ready, I am here to guide you.

Money is changing forever.

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