The Bitcoin Series - Part 7: What would a full Bitcoin transition actually look like? - The Crypto 101 Show

Episode Transcript
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Speaker 1 (00:09):
Welcome to the Crypto one on one Show, where we
dive into the world of cryptocurrencies, bitcoin, blockchain, and all
the technology with it. Whether you're experienced or a beginner
to crypto, our goal is to break down complex concepts
and make it easy for you to understand the basics,
from Bitcoin to all coins. We'll cover it all in
a way that's easy to digest and provide listeners with

(00:30):
the knowledge and understanding they need to make informed decisions
and better critical thought. Sit back, relax, and let's simplify
your understanding of cryptocurrencies on the Crypto one on one Show,

(00:51):
Part seven. What would a full bitcoin transition actually look like?
The scenario based what if episode. I need to start
off by saying this is not financial advice, so if
you are looking for that, the show isn't for you.
The content of this podcast episode is for informational purposes only.
The opinions expressed here are not meant to be taken

(01:12):
as financial investment or any other advice. Welcome back to
the Bitcoin Series. Part seven. What if tomorrow the world
stopped running on dollars and started running on bitcoin. What
happens to your pension, your mortgage, your four O one k.
Would the system collapse into chaos or shift into something new?
And more importantly, who gets left behind? In this episode,

(01:35):
we're stepping out of theory and into a full on scenario.
What would a total bitcoin transition actually look like. We're
talking legacy finance, personal debt, government resistance, and the raw
winners and loser of a monetary reset. No hype, no fear,
just an honest look at what it might feel like
if everything really did change. Let's get into it. Question

(01:58):
one the fiat found foundations. What happens to pensions, four
O one k's and debt. Let's start where gets personal
retirement savings, debt, mortgages, the lifeblood of middle class financial life.
In a bitcoin transition, these fiat based structures don't just
quietly carry over. They either get restructured, erased, or revalued.

(02:21):
Let's break that down pensions in four O one k's
what's at risk? Pensions and retirement accounts are mostly backed
by fiat dominated assets bonds, mutual funds, treasury notes. That
means if the dollar weakens or collapses during a bitcoin shift,
those assets lose real world purchasing power fast. In a

(02:42):
best case scenario, some pension funds adapt early rebalancing into
bitcoin to hedge. In a worst case scenario, massive devaluation
promises made and yesterday's dollars can't be kept in tomorrow's
harder money. Four oh one k's are like a coupon
redeemable at a store that may no longer exist in a
few decades. Reality check, you don't really have the money

(03:06):
in your four one k. You have a claim on
a future denominated in a currency that may not survive
a global monetary shift. What about debt, mortgages, credit cards?
This one's trickier and interesting. If debt is dominated in FIAT,
and Fiat collapses or inflates into worthlessness, that debt becomes
easier to pay off if you earn or hold bitcoin.

(03:30):
But here's the twist. The creditor loses. The lender gave
you three hundred thousand dollars for a mortgage that might
now be worth a few sutochhis. That dynamic cannot hold forever.
In a mature Bitcoin standard, lenders would shift to denominating
future loans in bitcoin, creating new dynamics. Harder to get credit,
lower risk of inflation, and more responsibility on both sides

(03:54):
of the loan. The big takeaway a full bitcoin transition
wouldn't just change how we pay for things, it would
completely reshape how we value things. Think about pensions, four
on one k's mortgages. These are all promises made in dollars,
a currency that's always losing value little by little. That
slow erosion is actually built into the system. Bitcoin flips

(04:17):
that upside down. It's hard money deflationary by design, and
that means the old numbers like three thousand dollars a
month when you retire or three percent interest for thirty
years starts to fall apart. Those promises were based on
a system where the government could print money to fill
in the gaps, but in a bitcoin economy, printing isn't

(04:39):
an option, so everything gets repriced, retirement income, debt payments,
even how credit works. And the truth is some of
those promises just won't hold up under harder money. They'll
need to be rewritten, restructured, or in some cases abandoned.
That might sound scary, but it's also honest, because if
you're relying on a system that only works as long

(04:59):
as inflation does, then maybe it's not such a solid
foundation after all. For many that might feel like collapse.
For others, it's liberation from a system of future IOUs
built on inflation and trust. Erosion Fiat denominated debt might
feel like monopoly money. If the board game rules suddenly change,

(05:20):
question two, would we see chaos or a smoother transition?
So let's say it agains the shift. Bitcoin starts moving
from an alternative asset to the default monetary standard. The
dollar loses dominance, central banks lose control. What happens now?
Scenario one? A chaotic transition. If this shift happens suddenly,

(05:42):
let's say, triggered by a collapse in trust, a major
debt crisis, or runaway inflation, we're talking about chaos. Governments
might respond with capital controls, shutting down exchanges, freezing withdrawals,
or banning self custody outright. Banks could fail, markets could crash.
There might be bank runs, unemployment spikes, and political unrest.

(06:03):
It wouldn't just be economic, It would be emotional fear, anger, confusion,
because when people feel like the rules changed overnight, they panic.
Scenario two a gradual bottom up shift. But what if
the shift is slow and voluntary? What if people one
by one begin to opt out of the old system,

(06:23):
first as savers, then as spenders, builders and citizens. You
might see a dual economy form Fiat for taxes and bills,
bitcoin for savings and peer to peer commerce. Over time,
businesses start pricing in Stoshi's, workers ask to be paid
in bitcoin. Local communities adopt it before national governments even

(06:44):
realize what's happening. That kind of transition could be surprisingly smooth,
not painless, but organic. Think about how quickly people switch
from cash to venmo or cable to streaming. We adapt
faster than we give ourselves credit for. If we're geting
a choice, what most likely will happen A mix of both.

(07:05):
Truth is, it'll probably be both, some chaos, some clarity.
Some nations will resist, others will embrace it. Some people
will thrive, others will be left behind unless we help them.
But every time a system changes, it feels like disorder
until a new order emerges. The key is how prepared
we are, how much we understand, and whether we're building

(07:26):
bridges or just stacking coins. Question three, who wins and
who loses? In every system shift, someone wins and someone loses.
That's not cynicism, it's reality. And if the world transitions
to Bitcoin that reality hits hard. The winners early adopters,
the unbanked and underbanked, builders, educators, communities, and nations who

(07:51):
opt in early. Let's break each one down. Early adopters,
people who took the risk early, who saved in bitcoin,
learn how it worked and held on to it, will
come out ahead in a new monetary world. Conviction gets
rewarded the unbanked and underbanked. Bitcoin doesn't care if you
have a credit score, but doesn't care what country you're from.

(08:13):
For people locked out of traditional finance, bitcoin is a
way in. Builders, educators, and communities. Those who created wallets,
road explainers, built lightning apps, or simply taught their neighbor
how to self custody. They help write the new rules.
Nations who opt in early. Countries like Al Salvador and
possibly more to come that adopt bitcoin as legal tender

(08:36):
can give first mover advantage, a hedge against Fiat collapse.
Now the losers Fiat power structures, high leverage institutions and individuals,
pension funds and retirement systems, and people that are unprepared
or uninformed. Let's break each one of these down. Fiat
power structures, central banks, debt based governments and financial minutes.

(09:00):
Men lose their control over money. Printer inflation becomes impossible,
so does quiet manipulation. High leverage institutions and individuals. Those
relying on easy credit, low interest rates, or never ending
growth will find Bitcoin uncooperative pension funds and retirement systems.
Systems built on decades of Fiat assumptions may collapse, leaving

(09:23):
people holding promises. The math can't support people unprepared or uninformed.
Those who don't understand bitcoin or were never given the
tools to learn, risk being left behind. This is why
education and access are everything. Let me take a moment
to step out of the thought experiment and just be

(09:44):
real with you. If, and it's a big if, a
full bitcoin transition does happen, it won't be easy. I
don't think we can sugarcoat that. You're talking about tearing
up the blueprint of a global economy and rewriting it
with a brand new set of rules, rules that most
people don't even understand yet. The early stages would be rough.

(10:05):
People who rely on fiat pensions or fixed incomes. They
feel the pain. Governments that depend on inflation to manage
their debt. They resist banks, credit systems, public trust. All
of that would go through a kind of detox. Honestly,
I think it would feel a lot like quitting a
long term addiction. There'd be withdrawal anger, maybe in some

(10:27):
serious crisis moments, but if we survived the initial storm,
we'd come out on the other side with something more stable,
more transparent, more honest. Bitcoin doesn't solve all our problems.
It doesn't fix human nature or injustice or systematic inequality
by itself, but it does remove one layer of distortion,

(10:47):
the one that lets a few people quietly control the
money that governs everyone else's lives. So would a full
bitcoin transition be good or bad? I think the truth
is it would be both painful in the short term
empowering in the long term, but only if we're willing
to learn, adapt, and carry each other through it. Next episode,

(11:09):
in part eight, we will discuss bitcoin and human rights.
Can it help protect freedoms? Until then, stay curious, stay grounded.
I want to be extremely upfront that I try my
best to leave all of my opinions out of this.
I know this is very condensed and simplified, but I
want you to gain your own understanding of beliefs and
not be persuaded by me. I hope this helped you

(11:30):
gain a better grasp of it. Please remember to share, follow,
and subscribe to our mailing list and to your favorite
podcast app for future episodes so you can gain more
with your crypto knowledge. If this sparks something in you
or made you question what's possible, I'd love to hear
about it. And if you found this valuable, share it
tag someone who needs to hear it or just sit
with it. Thanks for listening. Thanks for listening to this

(12:03):
episode of The Crypto One on one Show. If you
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The Bitcoin Series - Part 7: What would a full Bitcoin transition actually look like?

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