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The Probability And Impacts Of Bitcoin - Part 1/3

In the pre-Bitcoin era, everyone was trapped in a system where the Federal Reserve and other Central Banks around the world could create money at will and increase or decrease interest rates to avoid inflation. An independent entity, having the power to rule over the economy with clout on our monetary supply. When fiat is saved, the velocity of money slows, and economic activity grinds lower — for this reason, the planners wished to encourage spending, and not saving, through quantitative easing. Now west and in an age where we see investors OPTING OUT of this economic riddle by taking their money “out of the matrix” and hiding it in Bitcoin; the computational solution of mathematical problems generates a type of digital currency in which a record of transactions is maintained and new units of currency, and which operates independently of a central bank. They did this as a consequence of the value of assets today being too high. They needed to invest in something, anything because their cash and bonds were quickly running out because of fiat printing. Previously, they didn’t have any other rational spending options, so they used to buy overvalued real estate, stocks, and other financial instruments, but now they have a much better option: buying Bitcoin. The difference now is that printing fiat is no longer encouraging people to spend their money; rather, the reverse is actually true when that lever is pulled. Instead, it is now inciting the excessive purchase and hoarding of the Bitcoinin much the same way that people hoarded cash during the great depression. The more the Central Banks print fiat, the more popular Bitcoin becomes as the smart money to escape the legacy monetary system, but italso works the other way around: the more Bitcoin that is bought, the more the Central Banks are forced to print due to fiat leaving the system for Bitcoin. Thus, a negative feedback loop ensues...


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