My Path to the Full Bitcoin Standard

Draft

I first heard about Bitcoin in 2012, but I didn't find it interesting at the time. I thought it was just some kind of digital currency, similar to the virtual money used in computer games like World of Warcraft. In 2013, I came across news about the FBI shutting down Silk Road, a marketplace where Bitcoin was used for buying and selling. The U.S. government's involvement caught my attention—it showed me that Bitcoin wasn't just some game currency or code that could be easily changed by its creators. It was being used in real commerce, even if it was illegal.

I tried to get some Bitcoin in 2013, but there wasn't a convenient way to do so. The only option I found was wiring money from Croatia to Japan's Mt. Gox exchange, but that seemed too complicated, so I gave up on the idea.

In the summer of 2014, I was taking a break from my entrepreneurial pursuits after experiencing burnout. I wasn't paying much attention to anything serious, but I decided to look deeper into Bitcoin. By then, there were more resources available, including videos explaining how it worked. I downloaded Bitcoin Core, set it up, and was ready to send and receive my first Bitcoin transaction.

What struck me was that the Bitcoin network was still operational, even after the shutdown of Silk Road and the collapse of Mt. Gox. This resilience intrigued me, so I decided to experiment. Luckily, a small Bitcoin exchange had just started in Croatia, where I live, and I was able to buy about $20 worth of Bitcoin in July 2014. The exchange rate was around $600 per Bitcoin at the time.

After receiving my first Bitcoin transaction, I spent some time researching on the Bitcointalk.org forums. But as summer ended, my focus shifted back to my entrepreneurial ventures. Bitcoin's price wasn't moving much, and since I had only invested a small amount, I eventually forgot about it. By the winter of 2014, my attention was fully on work and running a startup.

It wasn't until late 2017 that Bitcoin caught my attention again. I realized it was trading above $15,000 per Bitcoin, and I remembered buying it for around $600. This was the moment that pulled me down the rabbit hole.

Fortunately, I didn't spend much time exploring altcoins. By 2018, I entered my first real Bitcoin bear market. It was during this time that I read The Bitcoin Standard by Saifedean Ammous, which helped me understand the basics of monetary economics, the difference between hard and easy money, stock-to-flow, salability, and the problems money solves. This book changed my perspective—I stopped analyzing altcoins based on their marketing narratives and started viewing them through the lens of Austrian economics.

During the 2018 bear market, I also parted ways with the startup I co-founded, which meant my regular income stopped. With my savings depleting and income becoming irregular, I realized I needed to learn how to manage my budget. That's when I discovered Dave Ramsey's teachings on living debt-free. Listening to countless stories of how debt ruined people's lives convinced me that my previous stance on debt was wrong, both personally and professionally. I started budgeting my money and, by the end of 2018, I had cleared all my debt.

At the same time, I sold all the altcoins I had experimented with and decided to focus solely on Bitcoin. In 2019, I did freelance work while studying Bitcoin and gave my first Bitcoin presentations at my former university. I also conducted workshops in the small town of Rab, where I now live. Public interest was minimal, but I slowly connected with a few Bitcoiners in Croatia. Most of my time was spent listening to Bitcoin podcasts, reading Bitcoin Twitter, and trying to find people to discuss Bitcoin with.

In the summer of 2020, I got my first opportunity to work in the Bitcoin industry. I connected with Saifedean Ammous, the author of The Bitcoin Standard, and helped him fix some issues on his website. This led to a larger collaboration, where I worked on his online courses, seminars, podcasts, and books.

This was also the first time I earned Bitcoin directly. By late 2020, as Bitcoin broke its all-time high, I ran out of fiat money. Both my income and savings were in Bitcoin. I had some fiat inflows, but I spent that first, and eventually, I had no choice but to learn how to live on a full Bitcoin standard. My Bitcoin income and savings grew faster than my expenses, so I started treating Bitcoin as my cash balance, spending it just as I would spend fiat.

By this point, I was already consistent in budgeting, completely debt-free, and had established a giving practice. Switching my cash balance from fiat to Bitcoin was straightforward—I just had to practice regular "purchasing power reconciliation" in my budget. Once I started doing that, everything went smoothly.

During the bull run in early 2021, I hit my savings goals faster than expected due to Bitcoin's rapid appreciation. This allowed me to make significant expenditures, like acquiring a new office space, upgrading my tech, replacing consumer electronics, and buying a new scooter. I also took several vacations, all paid for with Bitcoin.

Later in 2021, as state COVID lockdowns intensified, I expanded my giving budget to help people whose livelihoods were threatened. This was when I fully realized Bitcoin's potential as censorship-resistant money. I helped locals protesting state oppression begin their Bitcoin journey and continue their resistance. If I hadn't been all-in on Bitcoin, I would have felt much more vulnerable, like those in Canada who lost access to their money for protesting the COVID regime.

I also connected with Bitcoiners from Germany and Austria who were seeking to escape their oppressive governments. I helped some of them relocate to my area, which led to organizing a Bitcoiner gathering in Rab in the spring of 2022. This gathering inspired the creation of "Dvadesetjedan," an open Bitcoin-only group for the Balkans region, modeled after the German "Einundzwanzig" network, part of the Twenty One World network of networks. Through our weekly podcast in my native language, I was able to teach, learn, and connect with other Bitcoiners in the region.

In 2022, my expenses were lower because I had already made most of my major purchases in 2021. This was fortunate, as Bitcoin entered a bear market. I naturally responded by cutting expenses further and increasing my income, which allowed me to accumulate more Bitcoin.

During this time, I noticed many Bitcoiners slowing down their Bitcoin purchases or becoming bearish. In the summer of 2022, when Bitcoin's price dropped below its 200-week moving average and stayed there for over six months, many were trying to time the market, expecting the price to drop further. While others hesitated, I was accumulating Bitcoin at the highest rate of my life.

I shared my experiences of living on a full Bitcoin standard on our weekly Dvadesetjedan podcast and began writing notes that eventually became this guide. After experiencing both a bull and bear market on a full Bitcoin standard, I now know this is the best way to handle Bitcoin's volatility. In bull markets, I naturally spent more, which reduced my expenses during bear markets. In bear markets, I cut spending and increased earnings, leading to greater accumulation. Without trying to predict Bitcoin's price, I still outperformed the best traders I knew by simply adjusting my budget and spending as needed.

Learning to live on a full Bitcoin standard is like learning to ride a bike—you only have to learn it once, and you'll never forget. I wrote this guide to help you, a regular Bitcoiner still living with one foot in the fiat world, fully upgrade to a Bitcoin standard. This is the path we will all eventually take. You have the opportunity to start now.