Join us for Rubix 2025: The Biggest Event in Porto Montenegro that would Never Happen
Wealth is nothing but a stored time and energy. Because it requires time and energy to accumulate it. Thus the most valuable components of wealth are time and energy. Intellectual property also fits there, but let’s ignore it for this exercise.
Nature has blessed all of us with a certain amount of time and energy per day. And you have a choice to either waste it by doing nothing but scratching your cojones, if you have one, or store that portion of time and energy somewhere.
The best way to store time and energy is a valuable asset like your house.
However an average person’s value of annual time and energy is not equivalent to the house. So they have to store it incrementally in some intermediate asset until it’s equivalent to the house.
Let’s use an example where the house is worth 40k€ and your annual time and energy is valued at 10k€.
Since no one is going to give you a 40k€ worth of asset in exchange for your 10k€ worth of time and energy per year, they instead use money (mostly fiat) as an intermediary storage of your 10k€ worth of time and energy and pay that to you as salary. In this pace it will take you 4 years to convert the intermediary storage into a house.
Unfortunately, since fiat (€ or $) doesn’t require the same amount of time and energy to produce, it leaks your stored time and energy everyday by (10-20% year on an average) in the form of inflation.
So for the above example, considering just 10% inflation, you will lose
-30% of your first year’s stored time & energy,
-20% of the 2nd year’s, and
-10% of the 3rd year’s, leaving you with only 34k€ instead of 40k€ in year 4.
That’s why people quickly convert their leaky storage (fiat) to other less leaky (gold) or fully leak proof (Bitcoin) assets. And this is what’s called STACKING…. And in this manner, in 4 years, just as planned, you are able to convert your 4 years worth of stored time and energy into a house like yours.
In conclusion, what you shared is literally the destination for most people. But the journey to the destination has a lot of current that takes you 1nmi back back for every 4nmi you move. Resulting in you needing to spend more time and energy to get to your destination. And STACKING is just leveraging wind to get more lift equivalent to 1nmi worth of the current to reach the destination on time and with the same energy.