Bitcoin Price relative to M2 and respective purchasing power over the next 10 years

Interesting chart from [InvestAnswers]( Video with R. Breedlove.

The chart glasbowls the value of Money Expension, Puchasing power and the respective value of inflationary money and a non inflationary alternative like Bitcoin.

Its interesting to me because i never considered the devaluation of property in wake of the Puchasing Power. While the Property rises in value, it is nowhere enough to outpace the value inflation as an investement.

Just something to keep in mind and maybe adjust some of your thoughts on money, property and what is key to a good asset.

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  1. Breedlove is brilliant but his price predictions are ridiculous imo. $307k by end of year? Doubt it.

    We all know BTC prices don’t move in a straight line from year to year either.

  2. Don’t go by Breedlove’s numbers. He predicted 300k by October. Instead you can look at James’ prediction of 33% xirr over mext 10 years which is really optimistic yet grounded.

  3. Interesting stuff!

    A key assumption is that property inflation rate will be a function of the M2 expansion.

    Personally, I’ve always assumed that property will at least keep pace with inflation, and likely grow due to supply constraints, which is what we’ve seen for the past century or so.


    It wasn’t really explained why property price appreciation would only be 40% of M2, and not 100% of M2. Anyone know the assumptions behind this?


    But it does also touch upon something interesting, that I’ve taken a lot of heat from in other investing subs – that money supply inflation makes property look like a much better investment than it is. Someone that bought a $300k home a decade ago and sold it for $400 thinks they’ve made $100k profit, but in real terms they’ve stood still. Once you factor in taxes, they’ve lost money.

    As Robert puts it “it looks like you’ve done exceedingly well, but your loss of purchasing power will be reflected in the world around you”.


    So if property inflation is 100% of M2, there will be a lot of property investors that think they’re genuises but are probably lagging inflation. If it is only 40% of M2, we’ll have a lot of homeowners that are paper millionaires but can’t afford food.

  4. For some very solid (albeit conservative) advice follow James and his Youtube channel. This dude knows what he is talking about and everything I’ve invested in due to his “ non-financial advice” has been stellar.

What do you think?

My crazy Bitcoin conspiracy

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