We live in a world where monetary inflation has become the norm. Since the COVID-19 pandemic, the situation has become even worse. We are now facing great monetary inflation.

So whether you like it or not, you are going to have to become an investor to protect the fruits of your labor.

If you don't, you are allowing inflation to slowly but inexorably eat away at the hard-earned money that you thought was safe in a savings account at the bank.

The Fed's monetary policy has pushed the stock market to record levels

The Fed's aggressive monetary policy since the beginning of the COVID-19 pandemic has clearly caused a TINA effect ("There Is No Alternative") which has been followed by a FOMO effect (Fear Of Missing Out) in the stock market. The market cap of Tech companies has thus soared over the last 18 months.

Apple now has a market cap of nearly $2.5 trillion. Microsoft is also above the $2.1 trillion market cap, while Google is close to it as well as Amazon.

These numbers might have seemed mind-boggling only 5 years ago, but as I write this, everyone seems to have gotten used to the current situation. Many even imagine that this time things will be different and that the valuations of these companies will never stop rising.

In my opinion, it would be a mistake to think like that. A major crash will happen sooner or later. It really can't be any other way when you see the current inflation numbers in America that keep going up. The Fed will eventually change its monetary policy, notably by raising interest rates. This should mechanically produce a major reaction in the equity market.

We are not there yet, but you should be careful.

Gold disappoints in the face of great monetary inflation

A favorite reserve of value for centuries, gold no longer seems to be favored by investors. In the midst of the current monetary inflation, gold has lost -2.2% in one year. Even worse, over the last ten years, gold has lost -15%.

If gold has obvious qualities, its flaws do not allow it to seduce as much as before. It has to be said that a new store of value has been steadily rising for the past ten years. This is Bitcoin, whose technical characteristics make it the store of value of the future in a world where everything will become digital.

To convince you of this, just take a close look at the numbers.

A comparison of 10-year returns confirms the success of the stock market

I had fun comparing the performance of these different assets over ten years. So I calculated how much money you would have today if you had invested $1,000 in one of these assets ten years ago. The results speak for themselves:

Illustration by Sylvain Saurel

An investment of $1,000 in Amazon ten years ago would give you $16,610 today. That's an excellent return on investment of +1,561%. The best among the GAFAMs.

We also see that an investment of $1,000 in gold ten years ago would give you about the same amount of money today. Some will say that this is the role of a store of value to be stable. Yes, but no!

Because your $1,000 from ten years ago doesn't give you the same purchasing power today because of this great monetary inflation we are experiencing. If you had chosen gold ten years ago, you would have lost money. The numbers don't lie.

Among tech companies, Tesla is way out in front. A thousand dollars invested ten years ago would represent $139,950 as of this writing. This is remarkable and is a testament to the phenomenal growth of the company founded by Elon Musk.

However, Bitcoin remains a special asset, a once-in-a-lifetime opportunity

However, one investment stands out in my illustration. That investment allows you to truly take back the power over the fruits of your labor. It is Bitcoin.

So, $1,000 invested in Bitcoin ten years ago would give you the equivalent of $4,669,480 today. A phenomenal return on investment of +466,848%.

It's clear here that Bitcoin is in a class of its own. Bitcoin not only allows you to grow the fruits of your labor by protecting it from the ravages of monetary inflation but more importantly, it allows you to do so in a censorship-resistant manner.

So for those who are serious about taking care of their money future, Bitcoin is clearly the asset to target. The good news is that the future that awaits Bitcoin is just as phenomenal as its recent past. So you're not late to the party, far from it.

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