Why Adopting the Bitcoin Standard is a Game-Changer for Businesses Today
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Being on a Bitcoin standard has never been more important than today. Both market and economic forces converge unfavorably, creating significant challenges for conducting business. We must identify and understand the underlying problem to address this issue effectively.
The KC Cattle Company recently made headline news after it announced it’s pivot towards using Bitcoin for its treasury.
This is simply the latest company to embrace a Bitcoin standard, moving away from an inflating fiat currency. The rationale is clear; as the US continues to print new dollars, the value of existing dollars diminishes. This results in a decrease in purchasing power for both consumers and businesses. For producers, it means that the cost of raw materials, labor, and components required to produce their goods and services keeps getting higher.
Annually, the essential costs to maintain your business operations are steadily increasing.
An equally devastating force for businesses
However, the challenges for a company operating in the modern economy don't stop there. Competition consistently drives down the prices at which products can be sold.
As Jeff Booth eloquently describes in his book, The Price of Tomorrow:
''Prices fall to their marginal cost of production''
As competition among companies intensifies for sales, prices inevitably begin to decrease. This is the natural force of technology, innovation, and increased productivity. We can generate more output with fewer resources, and as more people engage in production, the market permits increasingly narrower margins.
To recoup these losses, one might think businesses would simply raise prices. However, in many industries, particularly those characterized by fierce competition, this isn't always a viable option.
Businesses are then left with a stark choice: either accept lower profit margins, thereby limiting reinvestment and future growth or reduce the quality and quantity of their offerings. The latter often translates to the consumer as 'shrinkflation'—wherein package sizes remain the same, but the actual product amount shrinks.
This is precisely what we observe in today's world: smaller amounts of cheap, short-lived crap, that pales in comparison to the quality of the past.
‘‘It would be impossible to overstate the corporate advantages of being on the Bitcoin Standard. Since 2017, we’ve doubled our franchises to ten, more than 10x’d our trading profits, and delivered 25% annualized ROE for our shareholders. Our firm compensation, rent, and total expenses are up 89%, 119%, and 69%, respectively, in fiat, and down 36%, 26%, and 43%, respectively, in bitcoin. The more fiat we make, the more bitcoin I buy. You cannot print bitcoin.’’ – Ross L. Stevens, Founder & CEO of Stoneridge
A new hope
If we look at these two forces together, it seems almost incomprehensible how an economy could function this way. The simple reality is, it can't, and it isn't. However, most of the consequences of this are hidden from plain sight.
What, then, is the answer to these challenges? The solution lies in doing the opposite of what caused the problem. The root of the problem lies in the fact that our governments control our money. This situation mirrors the unholy alliance between the church and the state, utilizing this control to siphon wealth and power from society.
Bitcoin heralds a return to rationality, reminiscent of the gold standard era — a period where money was scarce, had real-world costs, and couldn't be arbitrarily produced.
As the world's first engineered monetary system, Bitcoin is programmed to maintain or increase its purchasing power, with 0% terminal inflation. This means that there is no leaking of economic energy, resulting in a flawless, thermodynamically efficient monetary battery. This is what Michael Saylor calls ''digital energy'', a concept that will take decades for humanity to unravel.
Therefore, it's hardly surprising that both companies and individuals opt to store their treasuries and life savings in Bitcoin.
Given two choices, which one do you choose?
- A currency that depreciates exponentially without any upper limit, eroding its purchasing power.
- A form of money with a strict upper limit, inherently designed to appreciate in value over time.
Microstrategy, Block, Stoneridge, and now The KC Cattle Company. As more and more companies get on a Bitcoin standard, they will start to outcompete their peers. Eventually, it will be impossible not to see the obvious.
How long are you going to stand by as your competitors are flying by you, effectively by doing nothing? The world has always shifted its power through technology. Simply having access to better technology often means you win by default.
Copper beats wood. Iron beats copper. Bullets beat iron.
Future technologies supplanting old ones.
As The Bitcoin Consulting Company, we exist solely to help transition the world from a fiat standard to a Bitcoin standard. Today’s biggest opportunity lies in companies, institutions, and organizations joining the network. We hope to be your Bitcoin Consultant.
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