A Bitcoin vs The FED short article!
In 1913 we had the FED inception, everyone knows that, no one looks at charts. It doesn't matter if you like it or not, if this was fair or not, a universal constant to the economy is a good thing.
Just like we measure distance or volume or mass around the world, 1 meter equals 1 meter in Zimbabwe and England, all the same.
I think that the Dollar System was engineered to be just like that. A lot of flaws in it, with the information we know now, but back then it was needed.
There were 7000 different types of bank notes before The FED's dollar system.
After the FED (December 1913) a lot of options on the table for companies, then the Roaring Twenties happened, with the S&P index (which wasn't composed of 500 companies like now) that couldn't dump or add old/new companies faster than the deflationary bust in 1932
After the bust, we had the Securities Act in 1933 that brought light to the stock market, and a new trend was starting, for the next hundred years, with the S&P500 turning into an adapting predator
If one company in the S&P did not met the requirements of the system, it would be replaced by another promising company. If 50 companies did the same, the system was prepared with 50 other companies to replace them
To ensure that the index is still beating everything in the market, on an average, long term.
To observe how the index performed, with some secular bear markets on the road, you will understand the concept of "diminishing returns" (important for Bitcoin) and the missconception around it (would not talk about it in this thread but get a hint brother)
Now to Bitcoin..
You can close your eyes and know that it's an american invention. Just like the dollar system, just like the adaptable S&P500 Index
But this one is better. I wouldn't mention the fundamentals, cryptography innovation, the byzantine generals problem, Metcalfe's law for network adoption.. I'm talking straight up how the asset behaves in the 'free' market
Like the S&P, it is an adaptable predator. The fact that it's property and IT IS THE ONLY PROPERTY ON EARTH THAT IS TRULY FINITE..
BTW.. some people will say that land is finite.. Ok, you are only 3-5% right, as the ratio for population vs land occupancy in the world is just that number: The actual percentage of land actively populated by humans (where people actually live and settle) is estimated to be around 3% to 5% of Earth's total land area.
At the same time, we are 8 billion people, and only 21 million bitcoin...
So no, land is not finite.. if we grow to 100% people covering all the planet, I'm sure we would create 3D plains long before that.. just like every 10 years economists predict that oil & gas reserves would end in the next 10 years because of how rapidly we consume fossil fuels. haha
Or just populate other planets due to our technological breakthroughs. So land is not finite. oxigen isn't. water isn't. Just study harder...
Bitcoin is!
People agree to a large degree that Bitcoin is only growing because of money printing. But hey..., money printing is a function of the system we live in.
I'm on the side that actually thinks Bitcoin is a black hole for monetary premium around the world
No matter how much money is printed, how high the FED rates are (BTC to 100k as rates were higher than 2007 hahahha), how many people are still skeptics.. Bitcoin is gonna steal all the monetary premium of all the asset classes around the world
Real estate, gold, bonds, stocks, big indexes, jewelery, supercars.. you name it
Just because it's property, it's finite, and IT'S THE MOST PORTABLE ASSET IN THE DIGITAL WORLD
I know millionaires in different markets that still don't get Bitcoin, that only means one thing...
The longer it takes for people to understand it, the longer the US Empire would have prolonged its longevity. My guess it's for the next hundred years, as Michaels Saylor recognized it early..
Companies that don't adopt the Bitcoin standard would not be included into the S&P500 for the next secular bull market. Similar to 1920 forward, as companies that changed the world adopted the $ standard.
FYI: I don't know any Chinese or Japanies or any other countries' companies that changed the world, through a technology stand point
People would missmatch The US's future right now, and they will be wrong.. for at least 100 years. My thoughts alone.
Thanks for reading guys, leave comments