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National fiat currencies are similar to shares of a company.
They represent a government's issuance of value. By using them, you're not only trusting their monetary policy but their overall political agenda.
The dollar's dominance isn't solely due to force & blood shed, but also because the U.S. has been the most politically stable country in the last 100 years, which conveys certainty to the rest of the world.
However, two phenomena are causing the USD to lose its global dominance:
-Inflation, which is the unlimited and arbitrary monetary issuance by the central bank (in this case the Federal Reserve).
-Various crises within American society, including that of its values, which communicates that the State and society are failing in resolving their problems.
We're talking about the decline of an empire and a society across multiple dimensions: material, economic, spiritual, and political.
The diminishing value of their currency is one of the symptoms and a compass pointing toward the direction the U.S. is heading.
Would you invest in U.S. shares if it were a company?
I wouldn't.
Taxes make US dollars more like a utility that's needed to reside peacefully in the country. I guess big holders of dollars are unconscious holders of a country's "shares"
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Love your answer. Would love to discuss further this analogy as I'm using it to educate nocoiners about Bitcoin and the financial system.
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You know, I share your view, and not only that; I'm convinced that a neutral option is needed, for what good is it to switch from one foul apple to another ? Furthermore I'm convinced that Bitcoin will fill the role of this neutral option and thus, I'm not into this anymore for mere Fiat-gains, but for the day the general public gladly accepts my Satoshi's.
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I don't know how Bitcoin can become an unit of account, which is needed to make it a good form of money if you wanna use it for payments.
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It gains the status of UoA when it's exchangeable for most goods and services available.
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I like to describe fiat currencies as being equity in the country (shares). It helps people understand what money printing really is - think of it like when a company is struggling so they raise new capital by creating new shares and selling them to new investors, except in this case they aren't receiving any new outside capital. They're creating the shares and issuing them to themselves for free, and then spending them quickly (cantillon effect) which has the effect of devaluing everyone elses holdings. e.g. you have a business with X amount of assets and 100 shares, each share owns 1/100 of x, then all of a sudden there's 200 shares but no new assets, so each share now owns 1/200 of x.
Money printing, like dilutive equity raises, are usually done in desperation, when there's no outside investors willing to invest in your country. I don't think this option is something any Administration will want to give up, so i've come to terms with the fact that fiat currency will continue to exist in the form of Central Bank Digital Currency (CBDC), i.e. nationalized banking, and the population just has to understand that it's not a savings tool, it's a social credit. You either use it or you lose it. Thankfully we have Bitcoin for our savings.
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Nailed it. Thank you for your comment.
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They are like company shares given out to workers as options.
You don't really have any influence over decisions unless you have enough of it to pay the propagandists.
You never signed up explicitly to be an employee of the state and be paid in company scrip.
It's just a way to rob you, if you don't know the magic words, and are not part of the right family.
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I think about this often. I don't like the direction my country, the US, is heading. But I also look around the world and see problems everywhere. The problems that the US is facing are not unique to the U.S.
I do see some encouraging signs in America. More people are waking up to elite corruption and incompetence. People are losing trust in mainstream media and mainstream politicians. They are looking for something different. Progress is slow because the institutions have such a stranglehold on the flow of information, and tribal politics keeps people from seeking alternative viewpoints. But I do believe that it is happening, slowly and surely.
So I am cautiously optimistic about the U.S. There are more levers for common people to fight the corrupt and incompetent here than in most other countries.
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Thank you for your comment. Indeed you can transpose this analogy to any other fiat currency in the world. I really hope the American people get their shit together. I really admire the original values this great nation was built on.
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You reason by analogy, and your analogies are bad nonsensical gibberish -- you are cargo-culting bad sense-making from influencers like Saylor who spout similar sorts of gibberish.
If you are unwilling or incapable of simply accepting information in its raw, unadulterated, sometimes uncomfortably ambiguous state, you are at risk of having something go awry in metaphor-land, leading to a crisis of "belief and conviction" in bitcoin, after which you may sell and HFSP. Your choice.
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the US is a bankrupted corporation held by the balls by the banksters
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