Thread by @ObiWanKenoBit

1/You can ignore #bitcoin. But at your own peril.

The House of Fiat sits on shaky ground. It wobbles, lurches, insidiously eroding wealth one day at a time. Fiat is unsound, soft money designed to explicitly steal from taxpayers through opaque economic policy schemes.

2/The further we stray from sound money, the flimsier economic foundation- subject to oscillations manifesting as economic boom & bust cycles, resonating downstream for years, building & feeding upon one another until systemic tension bursts collapsing economies worldwide.

3/Instead of addressing this foundational error, the Fed and CBs offer liquidity “retrofits” pouring fiat money/credit into an inherently unstable house & assure us it’s safe to occupy! So called Fed liquidity reduces behavioral friction inducing wild market gyrations.

4/Why? People are not rational. Liquidity makes its easier to rush into risk and flee even faster. Free flowing credit props up a flimsy economic construct, fuels irrational markets and rewards risky behavior.

5/Explicit and implicit govt backstops allow banking entities to take on inordinate risk chasing yields. It is this permissive environment which led to the ’08 crisis and has been fueling and will break the current cycle.

6/Low interest rates and QE have induced the bubble of all bubbles encompassing nearly every asset class. With unlimited fiat why not!

7/Humans are greedy & complacent, forgetful & seek new ways to exploit markets. Yesterday’s regulations are already made obsolete by today’s innovators. Another crisis may culminate in the correction of dozens of worldwide market distorting cycles left unaddressed for decades.

8/Conventional thinking says economic abuses are normal and we just need to rebalance through more regulation and oversight. We remember the last crisis quite well but choose to forgo its lessons and stand at the edge of another, resigned to accept its repercussions.

9/Yet market dislocations are deeper, longer and far reaching. While the Fed is patching the roof, the foundation is splitting. We see it manifest as a fever of people protests, socialist solutions, and wayward finger pointing.

10/Source of this discontent is grounded in failed fiat monetary policy. For over 100 yrs we've been subjected to CB socioeconomic engineering and experimentation. Fiat foments disillusion, engenders displacement and breaks the backs of the very citizens it is supposed to serve.

11/But now we have bitcoin. Bitcoin is money that cannot be seized, censored, counterfeited, nor inflated by central authorities. Tens of millions of people imbue Bitcoin with a highly resistant social consensus. This social contract is a key tenet of sound money.

12/And unlike fiat, Bitcoin is getting stronger each day. You cannot make bitcoins faster. You cannot demand more be made. Bitcoin follows a predictable issuance schedule.

13/A Bitcoin based economy introduces mathematical rationality. Bitcoin creates behavioral friction —money resistant to willful inflation and “printing.” It realigns savings and consumption drivers.

14/This leads to measured investment and economic growth. Instead of falling headlong into dubious/opaque credit expansion schemes, we have the means to verify and quantify.

Fin/Bitcoin breaks govt’s money monopoly. Bitcoin forces banks and their intermediaries to become transparent, accountable and liable for their actions. With Bitcoin we establish a strong foundation and build a better economy re-establishing individual financial sovereignty.