Hieronymus T. Badger on Nostr: Are you having your "Dicaprio Pointing At TV" moment yet? An overwhelming factor in ...
Are you having your "Dicaprio Pointing At TV" moment yet?
An overwhelming factor in the collapse of the Roman empire was the dilution of the intrinsic value of the money by the state, as precious (read; genuinely scarce, as precious metals require Proof of Work by physics) metal content of currency tokens was reduced, with the Empire attempting to maintain the original face value - the old Free Lunch trick. Never fails! "Muh stimulated economic activity!"
Ahem.
With a large (expensive) army required to project power to maintain the Empire, the value gap in the middle of that value dilution was essentially plundered from citizens' savings back to the issuer of the currency - briefly (on a civilization's time frame) allowing the propping up of the Empire by military force instead of an intrinsic desirability for economic interaction of private parties using the currency.
Oh, and don't forget the Full Faith And Trust! Almost as good as the Free Lunch.
The result in reality was signing its own death warrant - putting the Empire on an inescapable slippery slope requiring exponentially more and more debasement just to try to hold its ground - people and states turned away from the decreed currency, favouring precious metals for trade once again.
The result was an Empire propped up by hopes and dreams and an early analogue of monopoly money (the coyote doesn't look down right away - dramatic effect).
With record debt-to-GDP, rampant inflation, diminished genuine price discovery in favour of anticipating Fed rate change, and a currency utterly unreliable to international counterparties (SWIFT sanctions, confiscation of central bank reserves), the question isn't "What price will Bitcoin be after the next halving!?", and more "why the hell are people even talking about the price action?"
Get the hell out of fiat currency. Protect your wealth or be the sucker left holding the bag.
An overwhelming factor in the collapse of the Roman empire was the dilution of the intrinsic value of the money by the state, as precious (read; genuinely scarce, as precious metals require Proof of Work by physics) metal content of currency tokens was reduced, with the Empire attempting to maintain the original face value - the old Free Lunch trick. Never fails! "Muh stimulated economic activity!"
Ahem.
With a large (expensive) army required to project power to maintain the Empire, the value gap in the middle of that value dilution was essentially plundered from citizens' savings back to the issuer of the currency - briefly (on a civilization's time frame) allowing the propping up of the Empire by military force instead of an intrinsic desirability for economic interaction of private parties using the currency.
Oh, and don't forget the Full Faith And Trust! Almost as good as the Free Lunch.
The result in reality was signing its own death warrant - putting the Empire on an inescapable slippery slope requiring exponentially more and more debasement just to try to hold its ground - people and states turned away from the decreed currency, favouring precious metals for trade once again.
The result was an Empire propped up by hopes and dreams and an early analogue of monopoly money (the coyote doesn't look down right away - dramatic effect).
With record debt-to-GDP, rampant inflation, diminished genuine price discovery in favour of anticipating Fed rate change, and a currency utterly unreliable to international counterparties (SWIFT sanctions, confiscation of central bank reserves), the question isn't "What price will Bitcoin be after the next halving!?", and more "why the hell are people even talking about the price action?"
Get the hell out of fiat currency. Protect your wealth or be the sucker left holding the bag.