**12. Bitcoin Standard Thinking**

12. Bitcoin Standard Thinking

Bitcoin has created an entirely new world. In this world, there is only one standard — Bitcoin.

When an economy is backed by gold, we say it runs on the gold standard. Likewise, when an economy is backed by Bitcoin, we can say it runs on the Bitcoin standard.

No such economy exists yet, but I believe it will in the future. While we cannot change others, we can change ourselves first — starting with me.

For example, if we use Bitcoin as the reference frame, the U.S. dollar’s performance looks like this (Figure 1):

Figure 1. USD price relative to Bitcoin (unit: 1 satoshi = 0.00000001 BTC)

Clearly, the U.S. dollar is a “going-to-zero coin.” From 2 billion satoshis in 2010, it has already fallen to 10,000 satoshis today, and it could continue down to 10 or even 1 satoshi. In fact, almost every asset looks the same when measured in Bitcoin terms — continuous depreciation, with wild volatility.

It’s like viewing the world from a rocket: everything on the ground shakes, shrinks, and fades away.

You may never have thought how much a simple change of reference could alter perception. But as pioneers, we must learn to adapt.

---

First: Concepts Truly Change

Dollar-cost averaging Bitcoin should really be called ​fixed savings​. Hodling Bitcoin is no longer investment — it’s savings.

Holding RMB is equivalent to holding foreign currency. I’m a “citizen” of Bitcoin, “immigrating” into China. I accept salaries in RMB for practical reasons, and keep some on hand to live. I won’t foolishly demand merchants accept my “home currency” Bitcoin. Instead, I exchange into RMB voluntarily to pay.

Now you can see how ridiculous it is when someone insists on buying coffee with Bitcoin. Why not simply exchange into fiat for daily purchases?

In investing, only gains denominated in Bitcoin are real gains. Anything else is a loss. Most people, by this measure, lose. We, as hodlers, win.

Oh, and one more thing — in our world there is no inflation tax. Never again will we pay it.

---

Second: Consumption Becomes Rational

In the past, my spending was excessive. With spare fiat, I’d often host dinners. Whether we liked it or not, inflation distorted our choices — holding fiat guaranteed loss.

Once I shifted into Bitcoin standard, everything changed. Back then, one dinner cost roughly 1 BTC — one 21-millionth of the total supply. To waste it on a meal was unbearable.

So I kept myself extremely busy with work, skipping dinners without offending anyone. In hindsight, that decision was wise. The Bitcoin I saved then likely pays for a lifetime of dinners now.

Today, a meal may cost 0.0X BTC. Still expensive, but as long as it’s a negligible fraction of total holdings, the consumption is justified — even knowing one dinner equals hundreds of future ones.

Critics who say Bitcoin’s appreciation will suppress spending clearly never held Bitcoin. Remember, someone once bought pizza for 10,000 BTC. No one will starve just to hodl — consumption simply becomes more thoughtful. Every expense forces you to weigh whether trading tomorrow’s hundredfold purchasing power is worth today’s indulgence.

---

Third: Abandon Pyramid Mentality

Every bull market brings in fake “Bitcoin fans.” Their hallmark: evangelizing Bitcoin to everyone, dragging it into every conversation, and tirelessly persuading others to buy or use it.

They believe they’re contributing. In reality, their behavior mimics pyramid schemes and tarnishes Bitcoin’s reputation. Most don’t last. When prices fall, the better ones disappear quietly, the worse turn bitter and attack Bitcoin.

Once you adopt Bitcoin standard thinking, you’ll stop “recruiting.” Whether you bring in ten or ten thousand, 1 BTC still equals 1 BTC.

Worse, by persuading others recklessly, you expose them to risks they may not withstand. You think you’re helping, but you may be harming. The harder you push, the more it reveals your lack of confidence in Bitcoin — deep down, you still believe in fiat. Because recruiting can only earn fiat, never Bitcoin.

So remember: Bitcoin requires no recruiting. Secure your own coins. That is the real work.

What if you want to help family and friends? Then buy coins for them yourself. Take the risk, let them enjoy the reward. If you can’t do that, perhaps the relationship isn’t as close as you think.

---

Finally: Cultivate an Abundance Mindset

The book Scarcity argues that scarcity narrows cognitive capacity, trapping people in short-term survival thinking.

Put simply, poverty is a mindset. A poverty mindset makes people dumber — and poorer. Gambling addiction is a perfect example: people know it’s wrong but can’t stop, because long-term scarcity has lowered their rationality.

Going all-in is another poverty mindset. After you do it, you become less rational. And irrational hodlers rarely last. I’ve never seen an all-in investor make it this far.

Now let’s revisit the 30% allocation rule.

In fiat terms, all-in vs. 30% allocation differs by one halving cycle — about 4 years. That’s significant. But the cost is lowered judgment, which often leads to exiting early. Few all-in investors survive.

Under Bitcoin standard thinking, the difference looks different: 10 BTC vs. 3 BTC. Time is irrelevant. Ten billion satoshis will always be ten billion satoshis. Three billion satoshis will always be three billion satoshis.

If you already own 3 BTC, adding 7 more doesn’t change your happiness much. Holding just 1 BTC already places you in the global top 0.01%.

Figure 2. Bitcoin address balance distribution (source: bitinfocharts.com)

As Figure 2 shows, only about 700,000 addresses hold more than 1 BTC. Out of 7 billion people, that puts you in the global top 0.01%. Holding 0.1 BTC puts you in the top 0.1%. (Note: exclude exchange wallets — coins on exchanges are not truly owned and will eventually be sold.)

So we must cultivate an abundance mindset early. Focus on creating value and personal growth, because money may not be scarce in the future. Time and energy will remain your scarcest resources.

With an abundance mindset, you’ll stop arguing with people you disdain. You’ll stop wasting energy on others. You’ll only care about your own growth.

---

In short, as pioneers we must learn to measure the world in Bitcoin. From now on, it’s as if we ride a rocket with a god’s-eye view, enjoying vistas invisible from the ground.