Let's start with the problem set laid out by @RayDalio in this post.
linkedin.com/pulse/world-ha…
1. There's too much money.
"Money is free for those who are creditworthy because the investors who are giving it to them are willing to get back less than they give."
linkedin.com/pulse/world-ha…
1. There's too much money.
"Money is free for those who are creditworthy because the investors who are giving it to them are willing to get back less than they give."
2. This extra money is acting like a hidden tax on growth rather than creating inflation.
"As a result of this dynamic, the prices of financial assets have gone way up and the future expected returns have gone way down while economic growth and inflation remain sluggish."
"As a result of this dynamic, the prices of financial assets have gone way up and the future expected returns have gone way down while economic growth and inflation remain sluggish."
3. Because we can't seem to balance our federal budget we will end up printing money to pay our bills.
"large government deficits exist and will almost certainly increase substantially... central banks, (will) buy the debt that is produced with freshly printed money"
"large government deficits exist and will almost certainly increase substantially... central banks, (will) buy the debt that is produced with freshly printed money"
4. Dealing with these problems would be political suicide, at risk is the dollar.
"The big risk of this path is that it threatens the viability of the three major world reserve currencies as viable storeholds of wealth."
"The big risk of this path is that it threatens the viability of the three major world reserve currencies as viable storeholds of wealth."
5. The USA uses the dollar as a weapon, and the rest of the world is getting sick of it.
The BRICs propose their own currency back in 2012.
thedailybell.com/all-articles/n…
The BRICs propose their own currency back in 2012.
thedailybell.com/all-articles/n…
6. While in the USA we're busy battling Zuck-Bucks, China is launching its own digital currency.
nytimes.com/2019/10/18/tec…
nytimes.com/2019/10/18/tec…
7. Suddenly, Bitcoin mining is no longer "banned" in China.
8. Hong Kong rolls out a regulatory framework for virtual assets.
"...because it is clearly in the public interest to enable investors to choose to participate in properly regulated virtual asset trading platforms."
sfc.hk/edistributionW…
"...because it is clearly in the public interest to enable investors to choose to participate in properly regulated virtual asset trading platforms."
sfc.hk/edistributionW…
9. If the US dollar is doomed, then what will back these new currencies? Gold? China already has gold backed oil market.
mondialisation.ca/trading-oil-fo…
mondialisation.ca/trading-oil-fo…
11. But, has anyone considered the hard problem of a gold-backed crypto? Is the redeemability really guaranteed? After all, the US Dollar was once redeemable for gold too. Here's Richard Nixon in 1971 sounding like it was just yesterday.
12. Even if trusting the Chinese government weren't an issue, there's a big difference between SAYING your crypto is backed by gold and having a guaranteed claim to your "digital twin." Just ask @leashless about this problem.
13. If only there were a scarce digital asset with a fixed supply that we could use to anchor value in the new world. Something that didn't require us to trust governments or third-party middlemen.
14. Enter Bitcoin, the life-raft those suffering from hyperinflation in dictatorial regimes. That combination of elements that has the power to change the world.
medium.com/the-challenge/…
medium.com/the-challenge/…
15. Investors and Entrepreneurs will fight for it with their time and money. The oppressed will vote for it because they desperately need sound money. Eventually governments start backing their digital currencies at least in part with Bitcoin. Then what?
16. It might be time to "Get off Zero" as our friend @APompliano says. Pension funds are taking note.
cointelegraph.com/news/pomps-mor…
cointelegraph.com/news/pomps-mor…
17. Why are pension funds moving into Bitcoin? You can thank our irresponsible government and bad fiscal policy for this conundrum.
"...pension and healthcare liability payments will increasingly be coming due while many of those who are obligated to pay them don’t have enough..
"...pension and healthcare liability payments will increasingly be coming due while many of those who are obligated to pay them don’t have enough..
"..money to meet their obligations."
18. Pension funds are forced to choose between insolvency or taking on more risk.
"Right now many pension funds that have investments that are intended to meet their pension obligations use assumed returns that are agreed to with their.."
18. Pension funds are forced to choose between insolvency or taking on more risk.
"Right now many pension funds that have investments that are intended to meet their pension obligations use assumed returns that are agreed to with their.."
".. regulators. They are typically much higher (around 7%) than the market returns that are built into the pricing and that are likely to be produced."
19. No matter where you look the signal couldn't be clearer. Everything is pointing towards Bitcoin.
19. No matter where you look the signal couldn't be clearer. Everything is pointing towards Bitcoin.
20. Bitcoin is a risk asset that is slowly transitioning into a store of value that can simultaneously act as a method of exchange. Get ready to rewrite your textbooks because the game has changed.
21. As the next halving approaches, @CL207 points out a pattern. The divergences between the actual Bitcoin price and stock-to-flow model are slowly being reduced. I've attached images from the future. Now you know.
H/T @100trillionUSD.
H/T @100trillionUSD.
