Thread

Prediction: Because retail folks like you and me hold most of the bitcoin, And Because financial institutions are now buy Bitcoin, This means that: Dollars that used to circulate amongst financial institutions buying and selling securities and serve as collateral for derivatives will leave this circulation pattern and move in to the general public economy And thus, Financial system will become unstable And The stuff people like us buy will become more expensive. To “restore financial stability,” we bitcoiners will be held as scapegoats and our rights abridged.

Replies (3)

↩ replying to berean jones
Agreed. The big idea here is that we have two separate economies: the financial economy and the you-and-me economy. Post GFC, the federal reserve balance sheet went from $800B to $4T, but CPI barely budged. But something did go up in price: financial assets. Why? They printed money into their financial economy, and the pipes between that economy and our economy are small (for example, people drawing down their 401k accounts). Post pandemic they sent money to both economies. Both assets and CPI went up. But these new bitcoin pipes are gonna move money from finance to real economy and on average from older to younger. Since the financial economy is built on leverage, collateral will leave financial economy and necessarily deflate or require bailouts. In short, this is a tug of war…with the Fed getting to create rope for banks and treasury getting to make rope for the people. The fight is rich to poor but also money printer vs. Money printer.