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.
stevenyang / Steven Yang
npub1ze…rrzl6
2023-04-12 17:14:17
Author Public Key
npub1zet0ny2z0knagd7da34cex505ep7kqlj6ppjjltwjhw76tew060q2rrzl6Published at
2023-04-12 17:14:17Event JSON
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"content": "The thesis for #bitcoin is simple: \n\nWhenever 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.).\n\nThe 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.\n\nWhen 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. \n\nWe 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. \n\nTherefore, as long as this system continues to chug along, we can expect our money to be perpetually devalued. \n\nSince #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. \n\nIn simple terms, #bitcoin is the ultimate anti-fiat.",
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