This short crypto-economic piece explores the probability and impacts of Bitcoin triggering a collapse of our central banking systems and a reordering of the world's wealth structure.
Pre-Bitcoin, individuals were all trapped in a system where the Federal Reserve and other central banks around the world could create money at will and force people to purchase assets and consumer items so they would avoid inflation. 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 we are seeing the wealthy, investment banks and treasury departments of companies OPTING OUT of this monetary riddle by taking their money "out of the matrix" and hiding it in Bitcoin to send their value into the future. They do this because the value of assets today is too high, yet their cash and bonds are being eaten by fiat printing so they have to invest in something, anything. Before they had no rational spending options and had to buy ever more overvalued real estate, stocks, and other financial instruments, but now they have a much better option: buying Bitcoin.
The difference now is printing fiat does not encourage people to spend their money, the reverse is actually true when that lever is pulled, it encourages purchasing and HOARDING of Bitcoin in much the same way people hoarded cash during the great depression. The more central banks print fiat, the more popular Bitcoin becomes as the smart money escapes the legacy monetary system, but it also works the other way around: the more Bitcoin that is bought, the more central banks are forced to print due to fiat leaving the system for Bitcoin, and a negative feedback loop ensues.
To throw gas on the fire, this disappearing act of fiat into Bitcoin is starting to accelerate since the 2020 halvening event in May. Not a day goes by when we don't hear of multiple billions being sunk into Bitcoin by a new financial institution, and much fewer Bitcoin are being sold than bought. The Federal Reserve is seeing weakness in the economy and Congress announced they are printing another 1 trillion dollars to hand out to Americans; on the same day Bitcoin skyrocketed to all time highs. At a certain point, the exponential flow into Bitcoin will begin to affect the fiat money supply by reducing it significantly. This will cause deflation and the central bank will print orders of magnitude more fiat, which encourages ever more panicked Bitcoin purchases to preserve wealth, and the cycle continues.
This "Bitcoin Option" represents the leaks in the system our monetary planners didn't anticipate. They either still do not see them or feel that they are impossible to stop due to the completely decentralized nature of Bitcoin. There is no CEO to drag before congress, no central server to shut down. These leaks may ultimately end up disrupting the entire banking system through hyperinflation with Bitcoin as an accelerant, and without a shot being fired.
I see a very uncomfortable future for those who don't own Bitcoin. The transition to the new system is going to impoverish many of the middle class that weren't impoverished before. The price of a whole coin is accelerating away from the financial reach of the middle class now and will continue to do so ($24,000 USD per coin as of today). As Bitcoin appreciates higher and higher, the US dollar and other currencies continue to debase themselves trying to catch up in overall value, the planners fill the gas tank faster as it continues to pour out onto the road.
In the end, a complete reordering of the entire global economic system will need to occur as the world economy stalls in its depreciating orbit and is caught in the gravity well that is Bitcoin, the new world reserve currency. Millions of people will lose their fixed income, cash and bonds to hyper-inflation while Bitcoiners become the new global wealthy, leisurely floating over the tidal wave of devalued dollars, in an ocean of paper money. The Federal government disappears like the Soviet Union as their financial instruments fail completely and there is a physical struggle for control as the power structure decentralizes. Crypto exchanges become our new economic pillars that control transfer into and out of the financial matrix as people desperately attempt to secure a handful of Satoshis, as the price of a full Bitcoin moves completely out of sight.
The haves and the have nots are reordered, into the early adopters and the late comers, those with Bitcoin and those without.
I have also recently seen a lot of information about the collapse of the current financial system and about the way out of this situation through Bitcoin, but all this casts doubt on this information, since usually no one talks about what will happen next. What is the point of those who want to change something to shout about it? I believe that the whole story with the collapse of the Baknov system is more of an information cover. It is likely that just someone really wants to get all the money in the world and the question arises, who benefits from it? It is beneficial for banks to control the financial system and people, making money on this constantly, but here we see the luring of big money. There is an opinion that they want to mitigate the collapse of the dollar system at the expense of cryptocurrencies, or even raise money and cash out the US debt, but destroy the banking system? I don’t think this is exactly the case, although I could also be wrong.
