Managing the Transition to A Bitcoin Future

It all starts with education...

We are living in truly extraordinary times. While the fiat world continues its slow, inevitable decline, we see the signs everywhere including inflation, bank failures, insane financial market gyrations, ever expanding sovereign debt, war and Fourth Turning-level global social unrest. Meanwhile, Bitcoin rises as a better way to store and transmit value in a self-sovereign way and can potentially change a lot of the dysfunction caused by fiat money. This dynamic leaves us in a difficult spot. Everything still runs on the fiat system (we earn our paycheck in fiat and pay our bills in fiat) and yet we want to move to a Bitcoin system of sound money, so the question is how best to accomplish that while living in both worlds. I have thought a lot about this lately and put this post together to highlight some ideas on how you can manage the transition to a bright orange Bitcoin future. I have enacted many of these in my own life, as I’ll describe later.

Here’s my top 11 things to do to help manage the transition to a Bitcoin future:

1. Educate yourself about Bitcoin: Before transitioning to a Bitcoin monetary system, it is important to educate yourself about Bitcoin. This includes understanding how it works, how to store and secure it, and how to use it as a medium of exchange. Even if you already think you know a lot about Bitcoin, stay humble, be curious, and be a life long learner.

   1. Read books and articles: There are many books and articles available that cover various aspects of Bitcoin, including its history, technology, economics, and politics. Reading books and articles can give you a broad understanding of Bitcoin and its potential as a monetary system. Bitcoin is weird in that the more I learn, the less I seem to know. These are the Rabbit Holes I wrote about previously:

   2. Watch videos and documentaries: There are many videos and documentaries available that cover Bitcoin and its related technologies. These can be an excellent way to learn about Bitcoin in a more engaging and visual way. Early on in my Bitcoin journey, I watched a lot of interviews with Michael Saylor on YouTube, which helped me begin to really understand the significance of Bitcoin. The What is Money Show “Saylor Series” is a great place to start, if you haven’t already seen it.

   3. Attend conferences and events: Attending Bitcoin conferences and events can be an excellent way to learn more about Bitcoin and connect with others in the Bitcoin community. These events often feature keynote speakers, panel discussions, and workshops on various aspects of Bitcoin. I went to the Pacific Bitcoin Conference in LA last year (wrote about it here) and I think I like the smaller venue better than going to the big conference in Miami, but to each their own. You do have to spend some money to go to these, but a local meet up is normally free.

   4. Join online forums and social media groups: There are many online forums and social media groups dedicated to Bitcoin and its related technologies. These can be an excellent way to connect with other Bitcoin enthusiasts, share information, and learn about new developments in the Bitcoin ecosystem. I have enjoyed interacting with Bitcoiners on Twitter, Damus and Substack which all have vibrant Bitcoin communities.

   5. Take online courses: There are many online courses available that cover various aspects of Bitcoin, including its technology, economics, and legal implications. Taking an online course can be an excellent way to deepen your understanding of Bitcoin and its potential as a monetary system. There is plenty of free material - one that comes immediately to mind is hope.com

   6. Experiment with Bitcoin: One of the best ways to learn about Bitcoin is to actually use it. This could include setting up a Bitcoin wallet, buying some Bitcoin, and making small transactions with it. This will give you a firsthand experience of how Bitcoin works and what its potential as a monetary system is. If you already have done the basics, try new security setups, use different Lightning wallets to move coins around, tip your favorite content creator or purchase goods and services with it.

2. Start small: When transitioning to a Bitcoin monetary system, it is a good idea to start small. Begin by buying a small amount of Bitcoin and using it for small transactions, such as purchasing goods or services online and of course don’t forget to HODL some.

3. Create a Bitcoin wallet: To store your Bitcoin, you will need to create a Bitcoin wallet. There are many different types of wallets available, including hardware wallets, software wallets, and paper wallets. In a prior post, I went through a quick start to self custody here.

4. Use Bitcoin-friendly businesses: To make the transition to a Bitcoin monetary system easier, it is important to use businesses that accept Bitcoin as a form of payment. Look for businesses that have a Bitcoin logo on their website or in their store. My first Bitcoin purchase was Saifdean’s The Fiat Standard that I bought directly from his website. An excellent book to read after you have read The Bitcoin Standard.

5. Accept Bitcoin as payment: If you are a business owner, consider accepting Bitcoin as a form of payment. This can help to increase the adoption of Bitcoin and make it easier for others to transition to a Bitcoin monetary system. Building a “Bitcoin circular economy” is vital to the future of Bitcoin adoption and unlocking Bitcoin’s ultimate potential as a medium of exchange and unit of account. Bitcoin is already an excellent store of value, but need not be limited to this role only.

6. Convert fiat to Bitcoin: To transition to a Bitcoin monetary system, you will need to convert your fiat currency to Bitcoin. This can be done through a Bitcoin exchange, where you can buy Bitcoin using your fiat currency. I would use Bitcoin native companies to purchase your Bitcoin like Swan, Strike, or Unchained to name a few I have used. Dollar cost averaging (automatically depositing a portion of your paycheck) seems to be the best way to stack, although you can buy more when you have extra money from a bonus, a maturing investment, tax refund, a gift / inheritance, etc. Slow and steady wins the race when stacking sats.

   

7. Diversify your investments: When transitioning to a Bitcoin monetary system, it is important to diversify your investments. This means investing in a variety of different assets, including stocks, bonds, and real estate, in addition to Bitcoin. I talk about portfolio allocation monthly, and while I maintain a pretty large percentage of Bitcoin, I also like to have other investments. I see the percentage of Bitcoin growing versus other assets in the portfolio over time as adoption and price increase, and I’m totally fine with that. It’s to be expected.

8. HODL: "HODL" is a term used in the Bitcoin community. This means holding onto your Bitcoin for the long-term, rather than selling it in response to short-term price fluctuations. To support the circular economy, you can spend and replenish your coins with more fiat, while HODLing your core Bitcoin savings.

9. Participate in the Bitcoin community: To make the transition to a Bitcoin monetary system easier, it is important to participate in the Bitcoin community. This includes attending Bitcoin conferences and meetups, joining online forums, and following Bitcoin influencers on social media.

   1. Start a blog or a podcast: Starting a blog or a podcast is a great way to share your knowledge and educate others about Bitcoin. You can cover various topics related to Bitcoin, including its technology, economics, and politics. By creating high-quality content, you can attract an audience and build a community of like-minded individuals. I started this blog in the dark days following the 2008 Global Financial Crisis, originally to identify a way to organize my personal finances and help others develop a “Financial Fortress” against the wild financial booms and busts of fiat clown world and so I looked at many types of alternative investments. I went through my crypto/shitcoin phase and eventually I discovered Bitcoin. Now I’m heavily focused on the “Bitcoin Fortress” as the core savings technology to protect and grow wealth, around which you can build everything else. I started a podcast a little over a year ago, mostly to help me and my audience stay up to date on Bitcoin news every week, since everything moves so fast. It’s usually 30 minutes to an hour and I try to cover what I think is interesting in the news and also provide some commentary. You can check it out here.

   2. Attend meetups and conferences: Bitcoin meetups and conferences are an excellent way to connect with other Bitcoin enthusiasts and learn more about the technology. Attending these events can also help you stay up-to-date on new developments in the Bitcoin ecosystem.

   3. Join online communities: There are many online communities dedicated to Bitcoin, including forums, chat rooms, and social media groups. Joining these communities can help you connect with other Bitcoin enthusiasts, ask questions, and learn from others.

   4. Contribute to open-source projects: Bitcoin is an open-source project, and there are many opportunities to contribute to the development of the technology. If you have coding skills, you can contribute to the Bitcoin Core codebase or other Bitcoin-related projects.

   5. Support Bitcoin merchants: Supporting Bitcoin merchants by purchasing goods and services with Bitcoin is another way to get involved in the Bitcoin community. By supporting businesses that accept Bitcoin, you can help increase the adoption of the technology and promote its use as a currency.

   6. Organize local events: If there are no Bitcoin meetups or events in your area, consider organizing one yourself. This can be a great way to meet other Bitcoin enthusiasts in your area and build a local community of supporters.

10. Orange Pill family and friends: Use all of that Bitcoin education to share the good news about better money with your family and friends. Invite them first to learn about it (I always like recommending reading The Bitcoin Standard) and let them decide for themselves if they want to buy Bitcoin, then help them get started if interested. I helped my brother this way and a friend at work, both with how to buy Bitcoin and self-custody in cold storage. When FTX was imploding, my brother texted me and said “I find it interesting how people left their crypto in exchanges…I am glad you helped me understand the way to do this.” For Christmas last year, I gave each of my kids a Trezor hardware wallet and my eldest son wanted Bitcoin as his college graduation gift, which I happily accommodated. My daughter also gets it, recently texting me during a conversation about the troubling trend of authoritarian governments throughout the world and especially in the West: “Bitcoin really is the future. Bitcoin is the only way you can choose where your money goes.” A proud moment, for sure. I tried talking to my Mom and Dad about Bitcoin with less success (read more about that here), but at least they are into hard assets like real estate and gold so they should be okay.

11. Be patient: Finally, transitioning to a Bitcoin monetary system is a long-term process. It will take time for Bitcoin to become widely adopted as a medium of exchange and unit of account, so it is important to be patient and to continue to support the growth and development of the Bitcoin ecosystem. “Stay humble and stack sats” as Odell says.

Not financial or legal advice, for entertainment only, do your own homework.  I hope you find this post useful as you chart your personal financial course and Build a Bitcoin Fortress in 2023.  To see all my books on investing and leadership, click here.  

Always remember: freedom, health and positivity!  

Please also check out my Building a Financial Fortress Podcast on YouTube here and on all your favorite streaming platforms. I do a weekly Bitcoin news update every week on current items of interest to the Bitcoin community, usually 30 to 60 minutes depending on the number of topics to cover. Please check it out if you haven’t already. Also now on Fountain, where you can earn Bitcoin just for listening to your favorite podcasts.