brock on Nostr: The popular “both Bitcoin and the dollar can coexist” narrative making the rounds ...
The popular “both Bitcoin and the dollar can coexist” narrative making the rounds on podcasts the last couple weeks is weak.
The market isn’t stupid. If given the opportunity to own bitcoin or USD, they’re gonna own bitcoin. If the market owns bitcoin then they won’t own US Treasuries. If they don’t own US Treasuries then the Fed will have to buy up ALL the US treasuries. If the Fed is buying ALL the US Treasuries then the private rate for debt will be much much higher than it already is…and asset values typically propped up by with credit will plummet.
From a first principles basis, there is no way a credit based fiat system can “coexist” with bitcoin. Bitcoin obsoletes the current super cheap credit-based monetary system.
It’s uncomfortable and inconvenient - yes - but that is why bitcoin will ultimately be so valuable.
The market isn’t stupid. If given the opportunity to own bitcoin or USD, they’re gonna own bitcoin. If the market owns bitcoin then they won’t own US Treasuries. If they don’t own US Treasuries then the Fed will have to buy up ALL the US treasuries. If the Fed is buying ALL the US Treasuries then the private rate for debt will be much much higher than it already is…and asset values typically propped up by with credit will plummet.
From a first principles basis, there is no way a credit based fiat system can “coexist” with bitcoin. Bitcoin obsoletes the current super cheap credit-based monetary system.
It’s uncomfortable and inconvenient - yes - but that is why bitcoin will ultimately be so valuable.