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100 sats \ 4 replies \ @anon 4h \ parent \ on: Young men aren’t investing in 401(k)s — they’re banking on bitcoin - MarketWatch Stacker_Stocks
Thanks for your comment.
The 'fiat operators' are their own worst enemy. I believe that many Europeans (even within the EU) plus many Asians (Japanese and Koreans) will eventually adopt Bitcoin because it is neutral and unconfiscatable. The Americans can't 'turn it off' and it is generally-speaking trivial to generate a seed phrase that no government can guess or confiscate.
I could choose the 'traditional financial path' but... I don't. It's not fast money it's better money and 'better property' that attracted me to Bitcoin in the first place.
What I cannot for the life of me understand is the defense of fiat... particularly by the 'financial experts'. The American national debt/deficit is totally unsustainable and the financial press loves to hate Bitcoin which... honestly I cannot understand.
Eventually the huge debts in Western countries (especially the US) will come due and the shortcomings of fiat will be painfully obvious. All the financial press does in the US is push denial "we're the best" the Chinese are "no competition for us" "we have tariffs" etc... all to make a quick buck or help investors feel "everything is fine". It's not.
Bitcoin will be there for people when they are ready and I think a shift is near-inevitable.
Have lately been thinking about how fiat apologists frequently assert Bitcoin does not produce anything- they are comparing to conventional investments like stocks or bonds and saying Bitcoin has no 'yield'.
But my response would be that Bitcoin is not a stock or bond- it is money that has inherently superior SoV integrity to fiat which is constantly and deliberately debasing forcing you to buy 'yield' bearing things like stocks, bonds or property.
So with Bitcoin as money you can hold your liquid capital and have it available for whenever any need or opportunity arises, free of any need to entrust it to third parties who may or may not honour their promises to grow its value.
Secondly, as money Bitcoin potentially provides an essential public service - - remember when the GFC threatened to collapse the fiat monetary-financial system- if it had collapsed the scenario would be apocalyptic - but with Bitcoin you have an alternative monetary system, standing by, completely independent from fiat and open to all providing global, neutral, near instant final settlement and free of any entity corporate or political-nation state ability to obstruct transfers.
That is a valuable public good infrastructure-insurance that exists and has proven and grown its strength, scaling (LN) and resilience.
Bitcoins provision of this independent and neutral monetary system is of huge potential value and while nation states have sought to obstruct bitcoins use as a MoE to preserve their fiat monopoly Bitcoin is still capable of MoE, and as long as it remains capable of MoE it can provide one of the most valuable public services - the provision of money free of third party censorship and debasement.
Most people seem so entrapped in the fiat debt paradigm they have forgotten what true freedom and integrity is. It looks a lot like Bitcoin!
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Have lately been thinking about how fiat apologists frequently assert Bitcoin does not produce anything- they are comparing to conventional investments like stocks or bonds and saying Bitcoin has no 'yield'.
Wallstreet sure is obsessed with yield.
People buy real estate which is a... great 'investment.' And it doesn't have yield either but boy does it go up each year.
So with Bitcoin as money you can hold your liquid capital and have it available for whenever any need or opportunity arises, free of any need to entrust it to third parties who may or may not honour their promises to grow its value.
Imo Bitcoin is 'better money' but it is not perfect. Better and extremely interesting however if one gets really pedantic... reducing trust to "zero" is extremely difficult.
I would say the 'system' and network is vastly more trustworthy.
Secondly, as money Bitcoin potentially provides an essential public service...
Bitcoin is imo way more 'risk off' than Wall Street gives it credit for.
Bitcoins provision of this independent and neutral monetary system is of huge potential value and while nation states have sought to obstruct bitcoins use as a MoE
I think Bitcoin is more than a MoE... I think MoE exchange sells it short because it implies Bitcoin competes with dollars and other fiats. I think it does but it... doesn't. It offers and creates trust where fiat can't and I think that is way, way more valuable than simple MoE.
It would be like buying an ice cream cone with a treasury bond... or government bond. That's not normally... what someone would do although it is theoretically possible. The Bond's value is based on trust and risk-off-ness and that is Bitcoin the network's inherent strength.
My guess as to what Bitcoin becomes is the global risk-off reserve asset, the same way "we" look at US treasury bonds or AAA government bonds today. That way if an institution or organization or trust or individual doesn't know what else to buy... they will buy Bitcoin because of its qualities.
That means Bitcoin becomes the neutral, global reserve asset which I believe is its likely future.
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Bitcoin has already demonstrated its worth as a SoV- because people like you and me chose to use it to store our liquid capital, because it offered us a more attractive option than the state imposed fiat money and its debt leveraged risk based stocks, bonds and property derivatives..
But we must still mostly use fiat for everyday MoE, which leaves the fiat operators still with effective monopoly over everyday MoE.
They can accept Bitcoin as a speculative commodity, taxed and tracked and traced, and increasingly custodied by them for a fee, but not as a MoE- because if Bitcoin is used as a MoE directly undermines their monopoly monetary power and their ability to control all commerce and trade and individuals involved in any commerce and to as a consequence extract rent from all participants by way of debasement and debt.
For me, for Bitcoin to succeed fully it must remove the layer of wealth extraction currently taken by the fiat operators via debasement and the ability to sanction individuals or entities they wish to marginalise.
As a reserve asset it does partially erode their monopoly but as a MoE it provides a fully competitive monetary market where fiat can only survive if its parasitic wealth extraction from participants is minimized.
Either way Bitcoin has succeeded already to an incredible degree- empowering many individuals and projects that would have not otherwise have been possible.
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But we must still mostly use fiat for everyday MoE, which leaves the fiat operators still with effective monopoly over everyday MoE.
The fiat system in its current format is unsustainable.
They can accept Bitcoin as a speculative commodity, taxed and tracked and traced, and increasingly custodied by them for a fee
Taxed and traced maybe under certain circumstances. But that doesn't mean it has to be custodied by 'them'. And as long as they don't have the keys... they can't censor the spending or movement of Bitcoin.
because if Bitcoin is used as a MoE directly undermines their monopoly monetary power and their ability to control all commerce and trade
You know what also undermines their monopoly monetary power? Borrowing ~ 7% of GDP per year and having to pay the interest. The math doesn't work when you can't raise taxes or cut spending (because the voters would vote you out).
As a reserve asset it does partially erode their monopoly
Dude eroding their monopoly means their bonds trend towards junk status and Bitcoin is AAA. They cannot sell debt the interest owed is too high, with too little demand when the bond is Junk.
where fiat can only survive if its parasitic wealth extraction from participants is minimized.
Well tell that to people in Zimbabwe. Or Mexico. Or Lebanon. Or the United States... people don't "have" to use fiat.
Either way Bitcoin has succeeded already to an incredible degree
I think Bitcoin is just getting started.
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