stevenyang on Nostr: The thesis for #bitcoin is simple: Whenever there is a crisis, the first thing that ...
The thesis for #bitcoin is simple:
Whenever there is a crisis, the first thing that governments from all over the world will do is print money (dot com bubble, 2008 GFC, COVID, etc.).
The reason they have to print is because our society is built on credit and debt, and the debt is collateralized by assets like treasuries, stocks, real estate, etc.
When a crisis happens, the value of all collateral will tend to decrease (everyone will look to liquidate for cash). But since our financial system is leveraged up to the eyeballs, a sizeable decrease in the value of collateral will cause a cascading liquidation of all debt.
We can’t have that because then the politicians will lose their jobs. In the end, all politicians will simply choose to kick the can down the road by printing money to cover the holes, and the cost of this money printing is the debasement of our money.
Therefore, as long as this system continues to chug along, we can expect our money to be perpetually devalued.
Since #bitcoin has an immutable monetary policy that will only ever produce 21 million #bitcoin, in the long run, we can expect its price to increase perpetually against currencies that are perpetually debased.
In simple terms, #bitcoin is the ultimate anti-fiat.
Whenever there is a crisis, the first thing that governments from all over the world will do is print money (dot com bubble, 2008 GFC, COVID, etc.).
The reason they have to print is because our society is built on credit and debt, and the debt is collateralized by assets like treasuries, stocks, real estate, etc.
When a crisis happens, the value of all collateral will tend to decrease (everyone will look to liquidate for cash). But since our financial system is leveraged up to the eyeballs, a sizeable decrease in the value of collateral will cause a cascading liquidation of all debt.
We can’t have that because then the politicians will lose their jobs. In the end, all politicians will simply choose to kick the can down the road by printing money to cover the holes, and the cost of this money printing is the debasement of our money.
Therefore, as long as this system continues to chug along, we can expect our money to be perpetually devalued.
Since #bitcoin has an immutable monetary policy that will only ever produce 21 million #bitcoin, in the long run, we can expect its price to increase perpetually against currencies that are perpetually debased.
In simple terms, #bitcoin is the ultimate anti-fiat.