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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
American invention ? The public writings of Satoshi seem to lean more towards being the expressions of a British author, or more pointedly, English.
The genesis block even contains a Times headline referring to the Chancellor of the Exchequer.
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The quote below confirmed that he is English to me. It’s just something only English people really say.
"I know this sounds really retarded, but" - Satoshi.
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Until there is a Bitcoin Anarchist zone defended by nuclear weapons, the USA is going to continue to be unbeatable by any other nation state, until the age of nation states is finally over.
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Delusional hopium hype. Face the reality. Bitcoin has already been captured and controlled by the fiat debt slavery bankers cartel. They have already changed the narrative from a P2P Payments Protocol to Bitcoin being primarily a speculative commodity. As long as Bitcoin remains used primarily as a speculative commodity it is no threat to the fiat MoE monopoly which gives bankers and governments (esp the US government and the Zionist bankers that own it) its power. With Coinbase now holding custody of over 10% of the entire issuance of Bitcoin and that custodial capture and control growing daily Bitcoin will likely remain a speculative commodity plaything defined and confined by the fiat powers and prevented from ever seriously encroaching upon their power base- MoE/payments hegemony.
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I want to further add to the true finite nature of Bitcoin. 21M/infinity by consensus.
Land being rare -- the argument is spurious; The quote is, "they are not making more land", well, Mischief Reef in the Spratly Islands would disagree. But terraforming aside, most people want shelter, not land. There is plenty of land. Earth could sustain 100x its population easily, but we would need to get a little creative on how that land was configured. People like to poke fun at ideas like Neom Line, but such high density living could raise the quality of life of billions of humans.
While the number of potential dwellings on Earth is finite, it is most certainly many mega multiples of the integer number of Bitcoin. We can build, build, build. Ordos Kangbashi is a good example, its not that difficult to construct things! The biggest issue is the money used to fund projects -- the fiat monetary system. When we build these things on debt, macroeconomic effects conspire to make the system unstable. Large projects -- which should be seen as an accomplishment to humanity, collapse in spirals of debt, causing contagion to the rest of the system.
Eventually, an advanced global economy will always trip itself under its own debt, which on its face is kind of silly. If you singularly owe yourself $1, and have $1, you are square. Eventually so much of its productive capacity starts being wasted tracking and processing the debt. What was originally the enabler, becomes the administrative overhead destroying value. The whole point of Bitcoin was to vastly simplify the apparatus of settlement of global monetary, it simply strips away the need for that trusted third party.
With industrial construction and automation, I expect a major housing construction boom in the 2030s. This will be funded by Bitcoin bonds. Bitcoin is the only treasury asset that will be worth more as projects run -- how can we ensure a project stays under budget? Accounting with Bitcoin.
Eventually, I feel like it will reach an equilibrium of single person dwellings costing 0.1Ms (100ks) ~ 1Ms (0.01BTC).
At least, never pay more than 1 BTC for Land/RE for more than one person. On one side of the trade there is so much supply, practically infinite dwellings all made of easily accessed resources -- and the other side has a very finite amount of Bitcoin.
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Bitcoin is here to stay and is crushing as becoming a top asset
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