Here’s How a Lottery Winner Fumbled Generational Wealth (A Bitcoin Lesson)

0:00In this video, we're going to look at the real life case of a lottery winner, who made one of the greatest money mistakes I've ever seen. And she likely fumbled literal generational wealth in the process. So there's a real life story. There's a 20-year-old woman. They were calling her Brenda. She wins the lottery and she gets the choice of taking a lump sum amount of front or installments over time. So she was given the choice, one million dollars up front, lump sum payment, or a thousand dollars a week for life. For life sounds like a pretty long time, especially considering she's 20. But just know that if the government is offering you a deal like this, that sounds too good to be true. It probably is, because in this case, the government clearly knows what Brenda doesn't know, which is that the real purchasing power of her thousand dollars a week is going to drop like a rock over time. It's pretty much the same reason the government loves to get in so much damn debt. They want to spend money that's not theirs. Today, they want to borrow it from you and pay it back in the future with newly printed

1:00money that's worth less than it was when they first took on the debt. But back to Brenda. I'm going to show you what she did and how she screwed it up. In just a second, real quick, you're watching the sat stacker show, a Bitcoin show for people who think deeper about money. I'm your host. My name is John aka the sat stacker aka sat man in a little coat. If you want to learn to stack smarter and grow your conviction in Bitcoin, hit the subscribe button. And let's find out how this poor lady ended up as another cautionary tale of a lottery winner who blew it big time. Needless to say, Brenda's mistake, she chose the thousand dollars a week. She apparently said that the weekly income felt safer and offered more long-term stability. Whoopsie. Maybe she's bad with money. She didn't trust herself or maybe she just can't do math. I don't really know. But this is exactly why it's so important to educate yourself about money and finances. Become financially literate. Develop some level of financial responsibility as early on as you can. Please, for God's sake, teach your children about money. Because if you don't,

2:05they might end up like Brenda fumbling massive opportunities along the way. And that's not just about the lottery, by the way. That's basically literally true of everyone. The earlier you start learning about money and you start saving and investing, the more it benefits you because of the magic of compounding. So you could save just a few thousand dollars for your kids when they're young. And that could end up paying for their entire retirement decades later. So maybe Brenda thought she was taking care of her long-term future when she took the thousand dollars a week. But let's find out where she went wrong. So obviously, the quick math, she's locking in fifty two thousand dollars a year for life. That fifty two thousand dollars a year isn't even really going to keep her from having to get a job right now, much less help her retire anytime soon. But here's the real damage that Brenda doesn't understand. And that's that inflation is a ****. We know they say it's only two percent per year. And if that were true at two percent per year, the real value of a dollar is cut in half every thirty five years. Thirty five years from now, Brenda's thousand dollars a

3:09week only buys five hundred dollars worth of real stuff. But of course, inflation is not actually two percent per year. Since 1971, when we in the US went off the gold standard, the actual yearly average CPI inflation is almost double that at about three point nine percent. And that three point nine percent cuts the value of your dollar in half every seventeen years. But of course, that's also not where the story ends either because CPI is a manipulated joke of a metric that's designed to under report the real increase in prices. So I prefer to look at something a little more objective, which is the growth in the money supply. How much are they growing the money supply and diluting the real value of your dollar? Since 1971, the M2 money supply in the US has grown about 35 times. That implies an actual average inflation rate closer to about seven percent per year, which means the value of your dollar is cut in half every ten years. So what poor Brenda doesn't know is that by the time she's thirty, her safe, secure long-term stability lottery winnings only actually buys her

4:12twenty six thousand dollars worth of real goods and services in a year. Remember, she could have taken the million dollars today, but instead she took a thousand dollars a week. At a thousand dollars a week, it takes almost twenty years to get to a million dollars. By the time that twenty years has gone by, her fifty two thousand dollars a year will have the real purchasing power of about thirteen thousand dollars. Her thousand dollars a week has the purchasing power of two hundred and fifty dollars. After thirty years, her thousand dollars a week has the purchasing power of about one hundred and thirty dollars. It buys less than seven thousand dollars worth of real stuff every year. If Brenda and the government both actually even make it another fifty years, her safe, stable payout will have lost more than ninety seven percent of its real value. She'd be lucky if it buys thirty dollars worth of stuff in a week. This story legitimately makes me sad. It's bad enough seeing how much the government is going to screw her over and dilute the value of

5:16those winnings and all the rest of us too, by the way. But what's really going to hurt is seeing what the million dollars could have done for her if she took it today. In Canada, I heard they don't even tax the lottery winning so she actually could have taken home the full million. If you read about this story online, what you'll see is most mainstream media reports or financial advisors commenting and saying, oh, she could have put the million dollars into low-cost market-based index funds at a projected seven percent annual growth rate. She'd have about two million dollars just a decade from now. And yeah, that's not bad. In twenty years, she'd have over four million. Definitely compared to the slow death of fiat dilution of her thousand dollars a week, having four million in twenty years sounds pretty damn good. But let's get to the real punchline. This lady could have and should have taken that million dollars two day and bought the most scarce desirable asset humanity has ever known. She could have traded those dirty, debasing, useless, fiat, federal reserve, central bank, Cuckbuck IOU tokens for the hardest

6:22and best form of money that's ever existed. Global, borderless, permissionless, decentralized, censorship-resistant, peer-to-peer digital sound money. Like gold, but if gold could be digitized, dematerialized, and optimized for life in the internet age. Bitcoin, baby. Bitcoin, the greatest invention, the greatest discovery of our lifetimes, the best form of money that's ever existed. At today's prices, Brenda could have gotten over eleven Bitcoin. So let's see the math on what the orange coin can do, not the low cost index funds. Remember, this woman is only twenty years old. Forget the stupid fifty two thousand dollars a year. Just get a job, get any job. Do whatever you got to do. I don't care. Put the Bitcoin away. Forget about it. Work for just a decade. And let me show you what that Bitcoin could do. If Bitcoin does, what can legitimately be considered a conservative estimate of twenty percent compound annual growth rate over the next ten years, that Bitcoin

7:23would be worth over six million dollars. But twenty percent average annual growth is really nothing for Bitcoin. Michael Sayler is projecting an average of twenty nine percent over the next twenty years. At twenty nine percent, she has over twelve million dollars worth of Bitcoin in a decade. For context, over the last five years, Bitcoin's average annual growth rate is closer to fifty five or sixty percent. Do you understand now the bag that this woman fumbled? Take the conservative twenty percent annual growth rate again and project it out for twenty years. This woman could have thirty eight million dollars. She'd be forty. You might think that that growth sounds completely absurd, but it's really not. That implies a three point five million dollar Bitcoin in 2046. A total market cap for Bitcoin of seventy trillion. Sounds like a large number, but it's really not that outlandish. Gold today is about thirty trillion. Bonds, equities, real estate, cash balances. Each of them today is worth far more than seventy trillion. Bitcoin just has to eat a small

8:26percentage of each one of those asset classes to reach that market cap. Instead of thirty eight million dollars, this woman's going to have what amounts to thirteen thousand dollars in a year. It's just brutal. Please, no one show her this video. That would be cruel and unusual punishment. But forget her. Alright, put her to the side. Forget the lottery thing. The point stands for all of us, no matter who you are or how much money you have today. Saving in one system, absolutely obliterates you. It's designed to obliterate you. It only benefits you. If you're the one who prints the money or you spend your whole life getting into as much debt as humanly possible, so you can spend money that isn't yours and then pay it back with money that's worth less in the future. If you're just a normal-ass person who wants to work, create value, and store that value in something that doesn't degrade faster than a bag of avocados, then the only real choice is obvious. You exit the system of lies, manipulation, corruption, and control. You opt out of that one

9:30and you opt into a new system designed to protect and preserve your wealth and your purchasing power over time. As the rest of the world gets more and more productive and more and more of the population comes to the realization that Bitcoin is better money than the crap they're using now, all the benefits of that productivity and that adoption accrue to you in the form of greater and greater purchasing power. And instead of looking back and cursing your 20-year-old self for not understanding how money works, you'll be lying somewhere on a beach in the hot sun, eating red meat and cursing seed oils as your kids read the Bitcoin standard projected onto the inside of their eyelids. So, YouTube algorithm, do your thing and send this video to any recent lottery winners. Brenda in Canada, unfortunately, cannot be saved, but hopefully the rest of you don't have to make her same mistake. If you want to continue to learn how to stack smarter and grow your convection in Bitcoin, you hit the subscribe button, you watch this video right here, you can zap me a sats via your lighting wallet using the QR onto the screen, and never forget. Quit slacking and start stacking,