The Great Compression: Why Everything Trends to Zero in Bitcoin Terms
A #web3Wednesday article on the "real value" of risk-on investments in the decade ahead.
In a recent beautifully articulated insight shared by Cole Walmsley on X, the implications of measuring investment returns in Bitcoin terms were highlighted, bringing attention to a fundamental truth about Bitcoin’s fixed supply of 21 million. When we consider the valuation of giants like Nvidia, Apple, and Tesla in Bitcoin versus $USD, an intriguing pattern emerges: the price of everything trends toward zero in BTC terms.
Here's why this concept is reshaping our understanding of value and long-term investment.
Understanding the Finite Bitcoin Universe
The total number of Bitcoins that will ever exist is capped at 21 million—an unchangeable feature of Bitcoin’s design. This scarcity means that as global productivity grows and new innovations emerge, they must find a place within the existing 21 million Bitcoins. Today, valuations of leading companie…
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