There are two main reasons why your monetary pipe dream of a panopticon won’t materialize anytime soon, if ever.
Short 🧵
Firstly, the reigning “retail” tool of the central bank—physical banknotes—are more prevalent than you can imagine, vital to low income trade, and issuance grows much faster than global population.
CBDCs cannot compete with this trend: $9.2 trillion equivalent, and flying…
There’s nowhere else to look to find the CBDC “addressable market.” This is that. Right here.
This is the global stock of all central bank physical currency (CBPC 😱) in the world.
CBDCs must complement—compete—with their own CBPC stock to be any kind “meaningful.”
The CBPC stock has compounded at a globally weighted average of 10.4% per year since 1970.
Put another way, the stock of global physical cash _doubles_ every 7 years.
How easy do you think it will be to stop this trend?
Global population has compounded at 1.5% per year since 1970.
That’s a doubling every 47 years.
The global CBPC stock, on the other hand, doubles every 7 years.
How easy do you think it will be to stop this trend?
It’s already been tried. By a big player. In 2016, the Reserve Bank of India 🇮🇳 demonetised its 500 and 1000 rupee notes.
Quote: “As rates on deposits increase because of competition with a retail CBDC, either banks’ profitability would decrease or, alternatively, to maintain profit margins, banks could raise lending rates.”
The 2nd part isn’t natural; it’s caused by the 1st, monopolized action.
CBDC stock goes up ⬆️
CBPC stock unaffected ↔️
It *must* follow then, that retail deposits withdrawn from banks ⬇️
Banks have less funds to loan ⬇️
Banks earn less interest ⬇️
Every central bank knows this. Which is why they aren’t rushing in.
It’s… all… hype. 😱
Oh, and they’re:
—Not immutable;
—Not “blockchains;”
—Not private;
—Gonna be hacked on many levels;
—Socialist: further top-down monopolizations of a banking system that would work fine if the government got out of the way.
Time for the 2022 Q1 update on the Global monetary base. This is the only money supply that economically compares with bitcoins. Current price weakness drops #Bitcoin under the Swiss franc and silver vs. last quarter. This is quarterly update #16. 🧵
2/ This research covers the globe's top 50 fiat currencies, sourced directly from their central banks. You won't find this info anywhere else. Also we look at historical basic money stocks (i.e. gold & silver). Layer in #Bitcoin and we cover it all.
3/ It's important to keep tracking corporeal data like this, because it follows the money to the core of the system. Many like to say central banks run the printing presses into the ground. But how much do they… really? What does it all mean?
2021 Q4 update on global monetary base. Only money supply that economically compares with #bitcoins. Lots of updates this quarter. New currencies. New info. New brand! This is quarterly update #15.
2/ We now have the globe's top 50 fiat currencies included in this research, sourced directly from their central banks. You won't find this info anywhere else. Also we look at historical basic money stocks (i.e. gold & silver). Layer in #bitcoins and we cover it all.
3/ We are updating the brand as well around this research, something a long-time coming. Check out porkopolis.io. In addition to the Crypto Voices podcast, we will be doing frequent video streams of this data and much more long-scale economic charts under the PE brand.
Q3 update on global monetary base. This is only money supply that compares with 21 million #bitcoin. We are at a very interesting point in the pricing of the #Bitcoin system. At current levels, it's about to move from mid-major, to 🚨major currency. This is quarterly update #14.
2/ #Bitcoin is on the cusp of surpassing the value of the British pound sterling - $GBP - the oldest fiat currency in the world. The Bank of England is the first "modern" central bank, and its pound sterling could be classified as a relatively "successful" fiat currency.
3/ The Bank of England, being the oldest central bank (yes, the Riksbank is older, but wasn't a 'template' central bank at origin), is not that transparent. According to the BoE, they disclose "over 90% of our balance sheet by value."
Q2 update on global monetary base. Only money supply that compares with 21 million #bitcoin. Bitcoin remains the 6th largest money in the world. 7th if you include gold. Happy to report this research has reached it's 3rd year anniversary! 🥳This is quarterly update #13.
2/ Here's another way to look at #Bitcoin against its peers. Gold, silver, fiat base money, and thanks to the good people at @CambridgeAltFin, vs. global electricity (~100TWh vs. 23,000TWh). Interesting that #Bitcoin is accreting faster against money than electricity consumption.
3/ For 12 years the world's been trying to understand #Bitcoin, forget Bitcoin, legitimize Bitcoin, love Bitcoin, hate Bitcoin. Reminder Bitcoin still is a protocol, it does what it does. But if you want to speak of its value as money, you gotta understand *basic money.*
Q1 update on global monetary base. Only money supply that compares with 21 million #bitcoin. Bitcoin remains the 6th largest currency in the world. 7th if you include gold. This is quarterly update #12.
2/ For 12 years the world's been trying to understand #Bitcoin, forget Bitcoin, criticize Bitcoin, love Bitcoin, hate Bitcoin. Reminder Bitcoin still is a protocol, it does what it does. But if you want to speak of its value as money, you gotta understand the monetary base.
3/ What follows isn't a lesson in stimulus or bailouts, whatever the world faces. It's an attempt at painting the monetary landscape around the globe. This is an exercise in perspective. The dollars, euros, and yen we're all familiar with, collectively, are worth $27.8 trillion.
As it's yet again been one of those light news weeks for #Bitcoin, let's get down to brass tacks. Bitcoin is now the 6th... largest... currency in the world. ✊ It's 7th if you include gold. This is quarterly update #11.
2/ For 12 years the world's been trying to understand #Bitcoin, forget Bitcoin, legitimize Bitcoin, criticize Bitcoin, love Bitcoin, hate Bitcoin. Bitcoin is a protocol, it does what it does. But if you want to speak of its value as money, you gotta understand the monetary base.
3/ What follows isn't a lesson in stimulus or bailouts, whatever the world faces. It's an attempt at painting the monetary landscape around the globe. This is an exercise in perspective. The dollars, euros, and yen we're all familiar with, collectively, are worth $27 trillion.