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The Austrian economy is a very frequent topic of discussion and study within the Bitcoin community. Since this is the basic economic theory on which we find Bitcoin, it makes sense to understand this to help someone get started with Bitcoin. Josef Tětek, one of our regular employees here at Bitcoin Magazine, is an example of this.
Tětek wrote some fantastic articles for us including “Your financial data is not private, Bitcoin can fix it”, “This is where Bitcoin will rejuvenate your hope in life” and “Bitcoin is the sustainable money Europe makes”. Optimistic about both Bitcoin and life, Tětek maintains an optimistic outlook that testifies that Bitcoin is capable of doing something good.
In our interview we discussed how his foundations in the Austrian economy led him to Bitcoin and how often the opposite is the case with Bitcoiners. We then discussed how Bitcoin affected his life, both in terms of personal preferences and career. We touched on what he thinks is the most important part of people’s Bitcoin education – what he thinks is an understanding of fiat. Finally, we talked about what he’s looking forward to in this area and his bullish pricing thoughts. He said, “In the short term, we are usually too optimistic. In the long term we are too pessimistic. “
Check out the podcast above and be sure to read our written interview.
What’s your bitcoin rabbit hole story?
I studied Austrian economics at school and after graduating from high school I founded a libertarian think tank in the Czech Republic with like-minded classmates. That was around 2011. Back then we were mostly gold and silver bugs, and although Bitcoin was discussed among libertarians / Austrian economists, it was initially negative. I remember the bubble when bitcoin went up to $ 30 and fell to $ 2 – I thought that was it for bitcoin.
When Mt. Gox and Silk Road went down in 2013, I read a bit more about Bitcoin, but again I thought it was going to die after the major exchanges and markets closed. Then around 2015 I understood that this thing isn’t going to die and it’s actually what gold bugs were looking for – real free market money.
Unfortunately, from 2017 to 2018 I was seduced by the lure of shitcoins. Bitcoin’s maximalist signal wasn’t that strong back then, or maybe I just ignored it because I still had the fiat mentality and wanted my pockets to pump. Anyway, I was a bad shitcoin trader and had fewer sats after that time.
In 2020. I wrote a book with an unoriginal title – Bitcoin: The Separation Of Money And State in Czech. It is similar to the work of Saifedean or Vijay – an immersion in monetary history and economics.
Writing the book eventually made me a bitcoin maximalist – nothing other than bitcoin makes more sense to me.
How has Bitcoin changed your life?
I am a stereotypical bitcoiner in this regard. Bitcoin has definitely lowered my time preference: I think about the future a lot more because there is something I can look forward to. Fiat has really messed up our economies and societies, and with Bitcoin we have a solution on hand.
Like many others, I started looking for values in other areas of life and found the benefits of intermittent fasting, the carnivore diet and regular exercise.
Bitcoin changed my career too. I left corporate life in 2018 and was able to focus on “crypto” first, then bitcoin when I found out that “crypto” was bullsh * t. I’ve been working for Trezor since spring 2021 and it’s the best job of my life – I basically study Bitcoin every day and share with others why Bitcoin is important.
The articles you wrote for the magazine are aimed at educating others about the best way to maximize their Bitcoin stack. What do you think is the most important thing that people should read up on in relation to Bitcoin?
Two things: how fiat works and how bitcoin works.
Most people don’t really think about how today’s money works. Many still believe that there is a link to gold, or that central bankers have pinned the science of money down and there is nothing wrong with it. But when you show people the long-term charts – interest rates, price levels, M2 money supply, central bank balance sheets, debt levels – it really doesn’t seem sustainable. So that’s the most important thing: to see that something is wrong with the way the monetary system works today.
The second is how Bitcoin works. And I mean both as a monetary system and as a technology. Bitcoin’s value as money lies in its predictable, immutable monetary policy, which is in direct contrast to the monetary policy of fiat money. But in order for people to benefit from it, they need to understand how it works on an individual level and how to properly hold Bitcoin. And I believe the Trezor team are doing a great job providing ordinary people with the right tools to protect their seat.
What are you most looking forward to in the Bitcoin space?
There are many things. The introduction of Taproot and Schnorr and what advantages this brings for users. The imminent Bitcoinization of El Salvador – and a massive increase in acceptance in developing countries in general. I’m looking forward to the continued growth of the Lightning Network and the third level above – check out Impervious AI’s latest hackathon, that’s a couple of fascinating things.
But most of all, I’m looking forward to more and more people realizing that Bitcoin will never go away and what impact that will have.
What is your price forecast for the end of 2021 and the end of 2030?
Let me begin my answer with this: In the short term, we tend to be too optimistic. We are too pessimistic in the long run. I believe we will see Bitcoin over $ 100,000 by the end of 2021. Over $ 1 million by 2030 (in today’s purchasing power). But in the long run, fiat price doesn’t matter as fiat will fail and bitcoin will take power.