Education for Australian Tradies
As tradies, we understand the value of reliable tools and precise measurements. You wouldn't use a tape measure that changes length throughout the day, so why trust your hard-earned money to a currency that constantly loses value?
Bitcoin is the world's first truly fixed monetary system - with a maximum supply of 21 million coins that can never be changed. Just like the measurements you rely on daily, Bitcoin provides certainty in an uncertain financial world.
This website explains the basics of money, the problems with the current system, and how Bitcoin offers a practical solution for saving and securing your financial future.
Learn More About Bitcoin Start Saving in Bitcoin (Hardblock)From Barter to Bitcoin
Money has evolved dramatically throughout human history. Before money existed, people relied on barter - the direct exchange of goods and services. While functional in small communities, barter had significant limitations: the "double coincidence of wants" problem meant both parties needed to want exactly what the other offered.
To solve this problem, early civilizations began using commodity money - items with intrinsic value that were also portable, durable, divisible, and relatively scarce. Shells, beads, salt, and cattle all served as early forms of money in different cultures.
Around 700 BCE, the Lydians introduced the first standardized metal coins made from electrum (a natural alloy of gold and silver). Gold and silver quickly became the dominant forms of money across civilizations due to their unique properties:
For thousands of years, gold and silver served as the foundation of monetary systems worldwide. This was true "hard money" - money with intrinsic value that couldn't be easily created or manipulated.
The first paper money appeared in China during the Tang Dynasty (618-907 CE), but it wasn't until the 17th century that European banks began issuing paper receipts backed by precious metals stored in their vaults. These receipts were more convenient for trade than physical gold and silver.
Initially, each paper note represented actual gold or silver in a vault that could be redeemed on demand. This was known as a "100% reserve" system. However, banks eventually realized they could issue more receipts than they had gold, creating the fractional reserve banking system we know today.
By the late 19th century, most major economies operated on some form of gold standard, where paper currency was backed by and redeemable for gold at a fixed rate. This created monetary stability and facilitated international trade.
Under the gold standard:
The modern era of pure fiat money began in 1971 when U.S. President Richard Nixon suspended the convertibility of the U.S. dollar to gold, effectively ending the Bretton Woods system that had governed international monetary relations since 1944.
This historic shift meant that for the first time in human history, all major world currencies were:
In 2009, following the Global Financial Crisis, an anonymous creator known as Satoshi Nakamoto introduced Bitcoin - the world's first decentralized digital currency. Bitcoin represented a return to hard money principles in the digital age, with:
Throughout history, the most successful forms of money have shared certain key properties:
Bitcoin excels in all these properties, making it the hardest form of money ever created - even surpassing gold in several aspects, particularly in its absolute scarcity and ease of transfer across distances.
Hard money refers to a form of currency that has intrinsic value or is backed by a commodity with intrinsic value. Historically, gold and silver served as the primary forms of hard money due to their natural scarcity, durability, and universal recognition of value.
Key characteristics of hard money include:
Bitcoin is considered the hardest form of money ever created because its supply is mathematically capped at 21 million coins, making it even more scarce than gold, which continues to be mined at roughly 1-2% per year.
Fiat currency, including the Australian Dollar (AUD), is money that has value only because a government says it does. The term "fiat" comes from Latin, meaning "let it be done" or "by decree."
Key characteristics of fiat currency include:
The Australian Dollar, like all modern fiat currencies, is not backed by gold or any other physical commodity. Its value is based entirely on the trust in the Australian government and the Reserve Bank of Australia's monetary policies.
The Declining Purchasing Power
Since Australia abandoned the gold standard completely in 1971 (following the U.S. decision to end dollar convertibility to gold), the Australian Dollar has experienced significant debasement.
In practical terms, this means:
Money Supply Expansion
The Reserve Bank of Australia, like most central banks, has dramatically increased the money supply, particularly since 2010:
This expansion of the money supply is not a natural economic phenomenon but a deliberate policy choice that transfers wealth from savers to borrowers and from the average citizen to the financial system.
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. While central banks and governments often define inflation as a rise in the Consumer Price Index (CPI), the true definition is an expansion of the money supply.
When more money chases the same amount of goods and services, prices inevitably rise. This is not a natural economic phenomenon but a direct result of monetary policy decisions.
The Silent Wealth Tax
Inflation acts as a hidden tax on savings and fixed incomes. For Australian tradies, this means:
The Impact on Cost of Living
For the average Australian tradie, inflation has caused:
Consider this example: If you saved $50,000 AUD in 2010, by 2025 that money would only have the purchasing power of approximately $35,000 in 2010 terms. That's a loss of $15,000 in real value - without spending a cent!
This means you've effectively lost 30% of your wealth just by holding Australian dollars. Meanwhile, those who borrowed heavily have seen their debt burden reduced by inflation, effectively transferring wealth from savers to borrowers.
The official Consumer Price Index (CPI) often understates the true impact of inflation on everyday Australians:
The result is that the real cost of living for Australian tradies has increased much faster than official statistics suggest.
Property prices in Australia have skyrocketed over the past decades, far outpacing wage growth. Many tradies find themselves priced out of the housing market despite building the very homes they cannot afford to buy.
This is not because houses have become more valuable in real terms - the actual utility of a three-bedroom home hasn't changed significantly. Rather, it's because the money used to measure that value has been systematically debased.
The dramatic increase in Australian property prices is directly linked to the expansion of the money supply and credit:
This creates a cycle where property prices rise not because homes are more valuable, but because the currency used to measure that value is worth less.
Since 2010, Australia's M3 money supply (which includes cash, deposits, and other liquid assets) has more than doubled. This massive increase has coincided with property price growth in major Australian cities:
This is not coincidental - it's a direct result of monetary expansion.
For Australian tradies, this has created a perverse situation:
This is not a natural market outcome but the result of a monetary system that systematically transfers wealth from workers to asset holders and the financial sector.
As a tradie, you understand the critical importance of reliable measurements. Imagine trying to build a house with a tape measure that expands by 12% every year. This means that a "meter" today is different from a "meter" next year.
Just as a constantly expanding tape measure makes construction impossible, an expanding (inflating) currency makes economic calculation and long-term planning extremely difficult:
Bitcoin provides what tradies already understand is essential: a fixed unit of measurement.
As a tradie, you would never accept a tape measure that randomly expands. You understand that precise, unchanging measurements are essential for your work. The same principle applies to money:
As a tradie, you understand the importance of reliable tools and fixed measurements. You wouldn't use a tape measure that changes length throughout the day, so why trust your financial future to a currency that constantly loses value?
Bitcoin offers a practical alternative that aligns with the values that tradies already understand:
For tradies, Bitcoin isn't about speculation or getting rich quick - it's about preserving the value of your hard work:
This approach allows you to focus on your trade while your savings maintain their value over time.
Beyond personal savings, Bitcoin offers practical advantages for tradie businesses:
These advantages allow you to focus on what you do best - your trade - rather than becoming a financial expert just to preserve your wealth.
Starting with Bitcoin is simpler than most people think:
The key is consistency and patience - the same qualities that make for excellence in the trades.
Self-Managed Super Funds (SMSFs) have become increasingly popular for Australians looking to invest in Bitcoin as part of their retirement strategy. According to ATO figures, SMSFs now hold approximately $1.5 billion in bitcoin assets, up from just $240 million three years ago and zero five years ago.
For tradies, an SMSF can be the most tax-effective way to save for retirement while gaining exposure to Bitcoin's growth potential.
| Investment Option | 10-Year Annualized Return |
|---|---|
| Bitcoin | 102.93% |
| Hostplus Balanced (Top Superfund) | 8.9% |
| AustralianSuper Balanced | 8.6% |
| Australian Retirement Trust | 8.4% |
| Industry Median | 7.5% |
While past performance doesn't guarantee future results, and Bitcoin has higher volatility than traditional investments, its long-term performance has significantly outpaced even the best-performing superfunds.
| Fee Type | Traditional Superfund | SMSF with Bitcoin |
|---|---|---|
| Annual Percentage Fee | 0.85% - 1.5% of balance | Fixed cost, not percentage-based |
| Annual Cost on $100,000 | $850 - $1,500 | $1,359 - $3,759 (fixed) |
| Annual Cost on $300,000 | $2,550 - $4,500 | $1,359 - $3,759 (fixed) |
| Annual Cost on $500,000 | $4,250 - $7,500 | $1,359 - $3,759 (fixed) |
For larger balances, an SMSF can be significantly more cost-effective than traditional superfunds, especially when investing in assets like Bitcoin that have the potential for substantial growth.
One of the most compelling reasons for tradies to consider an SMSF for Bitcoin investment is the tax advantages:
These tax benefits can significantly increase your retirement savings over time, especially with high-growth assets like Bitcoin.
Setting up an SMSF for Bitcoin investment requires careful planning and professional advice. Consider consulting with:
While there are costs involved in setting up and maintaining an SMSF, the potential tax savings and investment flexibility can make it worthwhile, especially for tradies looking to secure their financial future with Bitcoin.
Start Your Bitcoin SMSF JourneySelf-custody means holding your own Bitcoin rather than leaving it on an exchange. This is a fundamental aspect of Bitcoin that aligns perfectly with the self-reliance valued by tradies.
As the saying goes: "Not your keys, not your coins." When you leave Bitcoin on an exchange, you're trusting that company with your money - similar to leaving your expensive tools in someone else's shed.
MUUN Wallet is an excellent option for Australian tradies new to Bitcoin self-custody:
The process is straightforward and takes less than 10 minutes to complete.
Just as you secure your valuable tools, you need to protect your Bitcoin:
These simple steps ensure that your Bitcoin remains secure and accessible only to you.
The Bitcoin network is a revolutionary financial system that operates fundamentally differently from traditional banking. As a tradie, understanding these differences can help you see why Bitcoin is not just another investment, but a completely new approach to money.
The Bitcoin network is a decentralized peer-to-peer system that allows value to be transferred directly between individuals without requiring any intermediaries like banks or payment processors. Think of it like a digital ledger that's maintained by thousands of computers (nodes) around the world, rather than by a single institution.
Key components of the Bitcoin network include:
Traditional banking systems are highly centralized, with a few powerful institutions controlling the flow of money:
The Bitcoin network, by contrast, is decentralized:
As tradies, you're familiar with the concept of middlemen adding costs to projects. The traditional banking system is full of fee-charging intermediaries:
The Bitcoin network dramatically reduces these costs:
Traditional banking has significant limitations:
The Bitcoin network operates differently:
For Australian tradies, the Bitcoin network offers several practical advantages:
Just as tradies have embraced digital tools that make their work more efficient, the Bitcoin network represents the next evolution in financial technology. It removes unnecessary middlemen, reduces costs, increases accessibility, and returns control to individuals.
By understanding and using the Bitcoin network, Australian tradies can position themselves at the forefront of this financial revolution, protecting their wealth while reducing dependence on traditional banking institutions that have historically profited at their expense.
Start Using the Bitcoin NetworkThe best time to start learning about and saving in Bitcoin was years ago. The second best time is today.
Begin with small, regular purchases through an Australian exchange like Hardblock, learn about self-custody with MUUN Wallet, and focus on your trade while your savings grow in purchasing power over time.
Start Saving in Bitcoin Today