Podcast Summary: How to Money – Episode #968: Banking on Bitcoin with Natalie Brunel

Release Date: April 9, 2025

Hosts: Joel & Matt
Guest: Natalie Brunel, investigative journalist and host of the Coin Stories podcast

Introduction to Bitcoin with Natalie Brunel

In this episode of How to Money, hosts Joel and Matt welcome Natalie Brunel to discuss the intricate world of Bitcoin. Natalie brings a wealth of knowledge as a former investigative journalist turned prominent Bitcoin educator, offering a fresh perspective on cryptocurrency beyond traditional investment avenues.

Natalie Brunel’s Journey and Perspective

Natalie shares her personal journey, highlighting how her family's struggle with financial insecurity shaped her views on money. Her immigrant background instilled a determination to understand and challenge the existing financial system. Natalie explains:

"Bitcoin is the best possible solution we have before us."
(03:13)

She contrasts her initial skepticism with her current advocacy for Bitcoin as a transformative financial tool.

Bitcoin vs. Traditional Financial Systems

Natalie delves into the flaws of the current monetary system, emphasizing how continuous money supply expansion leads to inflation and erodes purchasing power. She explains the Cantillon effect, where those closest to the money creation process benefit the most, leaving the working class disadvantaged:

"If you're close to the money printer... you benefit the most."
(07:23)

Natalie argues that Bitcoin, with its finite supply, offers a decentralized and inflation-resistant alternative, positioning it as a tool for preserving wealth and promoting economic freedom.

Understanding Inflation and Its Impact

The discussion underscores inflation as a critical issue affecting the working class. Natalie critiques the manipulation of the Consumer Price Index (CPI) and points out that the money supply (M2) has been increasing significantly, outpacing wage growth:

"The money supply is growing much faster than their wages."
(10:20)

She emphasizes that Bitcoin's limited supply makes it a superior asset for safeguarding against inflation.

Practical Use of Bitcoin in Daily Life

Natalie distinguishes between Bitcoin as an asset and a currency, suggesting that currently, it functions more as a store of value. However, she envisions a future where Bitcoin could become a mainstream medium of exchange as more merchants adopt it:

"Bitcoin is going to be an era of abundance and prosperity."
(18:19)

She also touches on the importance of self-custody and the various methods to securely hold Bitcoin, advocating for personal responsibility in managing one’s assets.

Bitcoin vs. Other Cryptocurrencies

Natalie highlights Bitcoin's uniqueness among thousands of cryptocurrencies. She praises its decentralized nature and lack of central authority, contrasting it with other tokens that often have founders or corporate backing:

"Bitcoin is very special. It is unlike all the rest."
(34:23)

She cautions listeners about the volatility and speculative nature of altcoins, encouraging a focus on Bitcoin as the most reliable cryptocurrency.

Security Concerns and Quantum Computing

Addressing security, Natalie reassures listeners about Bitcoin’s robustness against potential threats like quantum computing:

"I'm not worried about Bitcoin compared to everything else that will come before it."
(37:15)

She explains that advancements in quantum technology are not imminent enough to compromise Bitcoin’s SHA-256 encryption, and emphasizes the importance of maintaining security practices.

Investment Strategies: Long-Term Holding vs. Speculation

Natalie advocates for long-term investment in Bitcoin through strategies like dollar-cost averaging (DCA). She discourages day trading due to Bitcoin’s volatility, sharing her personal approach of daily purchases and celebrating market dips as buying opportunities:

"Volatility can increase your Sharpe ratio and actually increase your returns."
(21:54)

She recommends allocating a small but growing percentage of one’s portfolio to Bitcoin, highlighting its potential to outperform traditional assets over time.

Government’s Role and Strategic Bitcoin Reserves

Natalie discusses the government’s recent embrace of Bitcoin, noting the establishment of a strategic Bitcoin reserve. She believes this move signifies recognition of Bitcoin’s potential to address national debt and economic challenges:

"We need a strategic bitcoin reserve because it is important for the government to recognize this technology."
(46:16)

She envisions Bitcoin as a key asset for economic revitalization, advocating for its strategic accumulation to outpace debt.

Future of Bitcoin: From Asset to Currency

Looking ahead, Natalie envisions Bitcoin transitioning from a primarily investment asset to a mainstream currency, supported by emerging tools and services that facilitate everyday transactions:

"There are going to be more tools and services to allow you to do that."
(49:39)

She anticipates a gradual shift towards a Bitcoin standard, underpinning global financial systems with decentralized, immutable assets.

Takeaways from Hosts

Matt's Takeaway:
Matt emphasizes the importance of understanding economics to grasp Bitcoin’s significance. He recommends foundational reading, such as Thomas Sowell’s Basic Economics and Applied Economics, to better comprehend the systemic issues Bitcoin addresses:

"To understand Bitcoin, even to feel like this conversation is accessible, I think people need even more of a fundamental mental economic education."
(52:34)

Joel's Takeaway:
Joel advocates for diversifying portfolios with Bitcoin, viewing it as a strategic reserve asset. He suggests that even a small allocation can serve as a hedge against economic uncertainties:

"It's better to have some than to have none."
(53:34)

Final Thoughts and Recommendations

Natalie concludes with practical advice on securing Bitcoin, urging listeners to adopt self-custody methods and remain vigilant against potential threats. She also promotes her upcoming book, Bitcoin for Everyone, aiming to educate a broader audience on Bitcoin’s benefits and implementation.

"I wrote about how money supply expansion is moving at a much faster rate than wages, which is why so many people feel like they can never catch up."
(10:20)

Key Quotes

• "Asking the right questions can greatly impact your future, especially when it comes to your finances."
  (00:30) – Joel

• "Bitcoin is egalitarian. It doesn't benefit any race over another. It's the purest expression of freedom and self-determination."
  (02:02) – Natalie's description of Bitcoin

• "If you understand Bitcoin, you have a longer time horizon and don't look at the everyday price swings."
  (21:54) – Natalie on investment strategy

• "Everyone should be invested in Bitcoin. It’s a lot easier in terms of an investment strategy because you just set it and forget it and just keep accumulating."
  (42:43) – Natalie on portfolio allocation

Conclusion

This episode provides a comprehensive exploration of Bitcoin’s role in modern finance, its potential to disrupt traditional monetary systems, and practical advice for both newcomers and seasoned investors. Natalie Brunel’s insights offer a compelling case for integrating Bitcoin into personal financial strategies, underpinned by a deep understanding of economic fundamentals.

For more information and to pre-order Natalie’s book, visit howtomoney.com.