What does 1 Trillion mean to you?

US Dollar vs Bitcoin Creation Schedule

A few days ago, our kind and generous government agreed on printing another $1.9 Trillion dollars for the next stimulus package. This is the third stimulus package since March 27, 2020, bringing the total stimulus to $5 Trillion.

Do you adequately comprehend how much $5 Trillion actually is? I promise you don’t! I’ve been trying to comprehend it for 12 months and still don’t think I really do.

First off, the government collects about $3.5 Trillion in taxes every year. If there were no real consequences, to printing trillions of dollars, why don’t they stop requiring us to pay taxes and just keep the money printer rolling?

They will never stop making us pay taxes, because there really ARE consequences to continually printing money. And you start to realize the consequences when you start to understand the magnitude of $5 Trillion dollars. Let me see if I can help.

As you can see in the image above, you can see the difference between stacking 1 million one dollar bills versus one billion and one trillion one dollar bills. The comparison is 3.3 ft versus half a mile versus 631 miles. That’s basically the distance between Salt Lake City and Phoenix!

In terms of time, 1 million seconds is about 11 days time. 1 billion seconds is about 31.5 years. And a trillion seconds is more than 31,668 years. That’s right, 31 THOUSAND years!

Think of it this way, how long would it take you to count to 3600 if each number took 1 second? It would take you 1 hour. So if we follow that math, to count to 1 million, it would take 278 hours. Which is about 11 days. And 1 Trillion is 1 million million. So to get to 1 Trillion, it would be 11 days X 1 million, which is 11 million days, which is more than 30,000 years!

If you want a fun visualization, check out the video below:

So the next thing to do is put this into perspective of Bitcoin. Bitcoin’s market cap is about $1 Trillion. So the U.S. Government basically replicated the market cap of Bitcoin 5 times in 1 year.

What’s more important to realize is that the amount of Bitcoin is fixed at 21 million coins. Check out the images below that demonstrate the amount of Bitcoin and the amount of US Dollars created over time.

U.S Dollar

Bitcoin

You will notice the US Dollar is being created with no end in sight, where as the amount of Bitcoin created is diminishing as the years go on. The amount is fixed. The US Dollar is becoming less scarce at an exponential rate, while Bitcoin is increasing in scarcity at an exponential rate. It’s a simple lesson on scarcity.

I hope all of these images and thought exercises help you realize what is going on with our money. What are you doing to protect your purchasing power?

Pricing Analysis

Short term price analysis for Bitcoin remains tricky. The best thing to do is to continue dollar cost averaging. I’m predicting the price to remain choppy through April. I expect things to accelerate for all cryptocurrencies starting in May and lasting through July.

Crypto Accelerator Course Update

For those considering my Crypto Accelerator Course, I wanted to let you know that I will be increasing the price in the next couple weeks, so if you want to lock in the $750 price, be sure to do it before the end of March.

Also, I’ve changed the format a bit. I’ve made the course available on-demand. You can go through it at your own pace and on your own time. In addition, I will be holding a weekly 2-hour Q&A sessions to address any questions. Plus, you will be invited to a private Slack group to network and learn from others that have gone through the course. Please let me know if you have any questions, you can always schedule 15-mins on my calendar.

Have a great week and don’t forget to HODL!

Best,

Spencer