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In this video, we're going to look at the real life case of a lottery winner,
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who made one of the greatest money mistakes I've ever seen.
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And she likely fumbled literal generational wealth in the process.
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So there's a real life story. There's a 20-year-old woman. They were calling her Brenda.
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She wins the lottery and she gets the choice of taking a lump sum amount of front
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or installments over time. So she was given the choice, one million dollars up front, lump sum payment,
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or a thousand dollars a week for life. For life sounds like a pretty long time,
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especially considering she's 20. But just know that if the government is offering you a deal
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like this, that sounds too good to be true. It probably is, because in this case, the government
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clearly knows what Brenda doesn't know, which is that the real purchasing power of her
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thousand dollars a week is going to drop like a rock over time. It's pretty much the same
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reason the government loves to get in so much damn debt. They want to spend money that's not
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theirs. Today, they want to borrow it from you and pay it back in the future with newly printed
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money that's worth less than it was when they first took on the debt. But back to Brenda.
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I'm going to show you what she did and how she screwed it up. In just a second, real quick,
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you're watching the sat stacker show, a Bitcoin show for people who think deeper about money.
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I'm your host. My name is John aka the sat stacker aka sat man in a little coat. If you want to
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learn to stack smarter and grow your conviction in Bitcoin, hit the subscribe button. And let's find
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out how this poor lady ended up as another cautionary tale of a lottery winner who blew it
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big time. Needless to say, Brenda's mistake, she chose the thousand dollars a week.
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She apparently said that the weekly income felt safer and offered more long-term stability.
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Whoopsie. Maybe she's bad with money. She didn't trust herself or maybe she just can't do math.
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I don't really know. But this is exactly why it's so important to educate yourself about money
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and finances. Become financially literate. Develop some level of financial responsibility
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as early on as you can. Please, for God's sake, teach your children about money. Because if you don't,
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they might end up like Brenda fumbling massive opportunities along the way. And that's not just
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about the lottery, by the way. That's basically literally true of everyone. The earlier you start
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learning about money and you start saving and investing, the more it benefits you because of
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the magic of compounding. So you could save just a few thousand dollars for your kids when they're
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young. And that could end up paying for their entire retirement decades later. So maybe Brenda thought
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she was taking care of her long-term future when she took the thousand dollars a week. But let's
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find out where she went wrong. So obviously, the quick math, she's locking in fifty two thousand
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dollars a year for life. That fifty two thousand dollars a year isn't even really going to keep her
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from having to get a job right now, much less help her retire anytime soon. But here's the real
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damage that Brenda doesn't understand. And that's that inflation is a ****. We know they say it's only
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two percent per year. And if that were true at two percent per year, the real value of a dollar
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is cut in half every thirty five years. Thirty five years from now, Brenda's thousand dollars a
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week only buys five hundred dollars worth of real stuff. But of course, inflation is not actually
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two percent per year. Since 1971, when we in the US went off the gold standard, the actual yearly
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average CPI inflation is almost double that at about three point nine percent. And that three point
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nine percent cuts the value of your dollar in half every seventeen years. But of course, that's also
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not where the story ends either because CPI is a manipulated joke of a metric that's designed to
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under report the real increase in prices. So I prefer to look at something a little more objective,
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which is the growth in the money supply. How much are they growing the money supply and diluting
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the real value of your dollar? Since 1971, the M2 money supply in the US has grown about 35 times.
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That implies an actual average inflation rate closer to about seven percent per year, which means
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the value of your dollar is cut in half every ten years. So what poor Brenda doesn't know is that
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by the time she's thirty, her safe, secure long-term stability lottery winnings only actually buys her
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twenty six thousand dollars worth of real goods and services in a year. Remember, she could have
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taken the million dollars today, but instead she took a thousand dollars a week. At a thousand
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dollars a week, it takes almost twenty years to get to a million dollars. By the time that twenty
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years has gone by, her fifty two thousand dollars a year will have the real purchasing power of about
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thirteen thousand dollars. Her thousand dollars a week has the purchasing power of two hundred and
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fifty dollars. After thirty years, her thousand dollars a week has the purchasing power of about
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one hundred and thirty dollars. It buys less than seven thousand dollars worth of real stuff
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every year. If Brenda and the government both actually even make it another fifty years,
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her safe, stable payout will have lost more than ninety seven percent of its real value.
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She'd be lucky if it buys thirty dollars worth of stuff in a week. This story legitimately makes me
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sad. It's bad enough seeing how much the government is going to screw her over and dilute the value of
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those winnings and all the rest of us too, by the way. But what's really going to hurt is seeing
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what the million dollars could have done for her if she took it today. In Canada, I heard
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they don't even tax the lottery winning so she actually could have taken home the full million.
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If you read about this story online, what you'll see is most mainstream media reports or
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financial advisors commenting and saying, oh, she could have put the million dollars into low-cost
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market-based index funds at a projected seven percent annual growth rate. She'd have about two
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million dollars just a decade from now. And yeah, that's not bad. In twenty years, she'd have
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over four million. Definitely compared to the slow death of fiat dilution of her thousand dollars a
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week, having four million in twenty years sounds pretty damn good. But let's get to the real
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punchline. This lady could have and should have taken that million dollars two day and bought the
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most scarce desirable asset humanity has ever known. She could have traded those dirty,
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debasing, useless, fiat, federal reserve, central bank, Cuckbuck IOU tokens for the hardest
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and best form of money that's ever existed. Global, borderless, permissionless, decentralized,
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censorship-resistant, peer-to-peer digital sound money. Like gold, but if gold could be digitized,
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dematerialized, and optimized for life in the internet age. Bitcoin, baby. Bitcoin, the greatest
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invention, the greatest discovery of our lifetimes, the best form of money that's ever existed.
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At today's prices, Brenda could have gotten over eleven Bitcoin. So let's see the math on what the
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orange coin can do, not the low cost index funds. Remember, this woman is only twenty years old.
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Forget the stupid fifty two thousand dollars a year. Just get a job, get any job. Do whatever you
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got to do. I don't care. Put the Bitcoin away. Forget about it. Work for just a decade. And let me
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show you what that Bitcoin could do. If Bitcoin does, what can legitimately be considered a conservative
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estimate of twenty percent compound annual growth rate over the next ten years, that Bitcoin
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would be worth over six million dollars. But twenty percent average annual growth is really
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nothing for Bitcoin. Michael Sayler is projecting an average of twenty nine percent over the next
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twenty years. At twenty nine percent, she has over twelve million dollars worth of Bitcoin in a
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decade. For context, over the last five years, Bitcoin's average annual growth rate is closer to
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fifty five or sixty percent. Do you understand now the bag that this woman fumbled? Take the conservative
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twenty percent annual growth rate again and project it out for twenty years. This woman could have
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thirty eight million dollars. She'd be forty. You might think that that growth sounds completely
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absurd, but it's really not. That implies a three point five million dollar Bitcoin in 2046.
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A total market cap for Bitcoin of seventy trillion. Sounds like a large number, but it's really not
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that outlandish. Gold today is about thirty trillion. Bonds, equities, real estate, cash balances.
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Each of them today is worth far more than seventy trillion. Bitcoin just has to eat a small
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percentage of each one of those asset classes to reach that market cap. Instead of thirty eight million
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dollars, this woman's going to have what amounts to thirteen thousand dollars in a year. It's just
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brutal. Please, no one show her this video. That would be cruel and unusual punishment. But
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forget her. Alright, put her to the side. Forget the lottery thing. The point stands for all of us,
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no matter who you are or how much money you have today. Saving in one system, absolutely
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obliterates you. It's designed to obliterate you. It only benefits you. If you're the one who
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prints the money or you spend your whole life getting into as much debt as humanly possible,
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so you can spend money that isn't yours and then pay it back with money that's worth less in the
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future. If you're just a normal-ass person who wants to work, create value, and store that
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value in something that doesn't degrade faster than a bag of avocados, then the only real choice is
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obvious. You exit the system of lies, manipulation, corruption, and control. You opt out of that one
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and you opt into a new system designed to protect and preserve your wealth and your purchasing power
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over time. As the rest of the world gets more and more productive and more and more of the
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population comes to the realization that Bitcoin is better money than the crap they're using now,
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all the benefits of that productivity and that adoption accrue to you in the form of greater and
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greater purchasing power. And instead of looking back and cursing your 20-year-old self for not
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understanding how money works, you'll be lying somewhere on a beach in the hot sun, eating red meat
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and cursing seed oils as your kids read the Bitcoin standard projected onto the inside of their
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eyelids. So, YouTube algorithm, do your thing and send this video to any recent lottery winners.
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Brenda in Canada, unfortunately, cannot be saved, but hopefully the rest of you don't have to make
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her same mistake. If you want to continue to learn how to stack smarter and grow your convection in
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Bitcoin, you hit the subscribe button, you watch this video right here, you can zap me a sats via
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your lighting wallet using the QR onto the screen, and never forget. Quit slacking and start stacking,