Free Market, Deflation, and Bitcoin: A New York State of Mind

Explore how Bitcoin embodies the free market's natural deflationary tendencies, offering a unique perspective on wealth preservation in an inflationary world.

Free Market, Deflation, and Bitcoin: A New York State of Mind

Inflation got you down? What if rising prices ain't the only way? Bitcoin, with its fixed supply, offers a glimpse into a world where free markets lead to deflation, not inflation. Let's dive in.

The Natural State: Deflation

Forget what the economists say about needing inflation for growth. Mark McKenna Little of Trusted Advisor Nation™ argues that a free market naturally leads to deflation. Why? Because productivity and efficiency improve over time, driving prices down. Think about it: stuff gets better and cheaper.

Bitcoin: The Deflationary Asset

Bitcoin, with its limited supply of 21 million coins, embodies this deflationary principle. Unlike fiat currencies that can be printed into oblivion, Bitcoin's scarcity drives its value. Little points out that Bitcoin has consistently appreciated since its inception in 2009. Higher highs and higher lows, baby!

Housing Prices, But Make It Bitcoin

That house in La Jolla, California, costing $12,000 in 1932 and $6.9 million today? It ain't the house getting pricier; it's the dollar losing value. But priced in Bitcoin? That same house was 3.35 billion satoshis in 2009 but only costs 65 BTC in 2025. See? Deflation in action.

Beyond Housing: Bitcoin's Purchasing Power

It's not just housing. Gasoline, oil, even the Big Mac Index shows prices shrinking when measured in Bitcoin. Gold, often touted as an inflation hedge, also falls in Bitcoin terms. Bitcoin's eating everyone's lunch!

Why Should Financial Advisors Care?

Your clients' fiat savings are silently losing value. Bitcoin offers a deflationary alternative, preserving purchasing power over time. Explain it to them with real-world examples – housing, oil, or even Big Macs. Make it relatable, ya know?

The Jeff Booth Perspective

Even back in 2023, Jeff Booth, author of "The Price of Tomorrow," nailed it: "Deflation is the natural state of a free market. And only #Bitcoin can measure it." Preach!

My Two Satoshis

Look, I get it. Bitcoin's volatile, and this whole deflation thing might sound a bit out there. But the core idea – that a fixed supply currency in a free market preserves value – is compelling. It's not about getting rich quick; it's about protecting what you've got from the silent thief of inflation.

The Bottom Line

So, next time you're griping about rising prices, remember Bitcoin. It's not just a cryptocurrency; it's a window into a world where free markets and deflation reign supreme. And who knows, maybe that world ain't so far away after all. Now, go grab a slice and think about how many satoshis it costs.