If #Bitcoin is rising during a high interest rate environment while bank failures are returning to the line up, what does it do when the money printer comes back on? 🤔
Discussion
TINA
It's the same, only faster
These are not "high interest rates".
When inflation goes up again, Fed will raise rates.
Then it will be a balancing act between "buy Bitcoin because of all this inflation" and "sell Bitcoin because recession"...
Sure you are correct in a general sense. In a 20 year context the interest rates are "high" only because they have been so ridiculously low. But the Fed already raised rates more sharply than has ever been done in the past.
I'm not so sure they have the political will to bankrupt the US govt, which continuing to raise rates would actually do. And I'm also not so sure it is just going to follow recession/inflation cycles. It was always eventually going to break that correlation and as banks become unsafe places to keep capital (which higher interest rates will accelerate massively), we really don't know how #Bitcoin is going to be treated in the market.
Small amounts of capital are insured, so there isn't much to worry about in terms of bank runs. Plus we already know the government can prevent almost all bank failures.
But if there is that capital flight, it may just be to bonds, which are more attractive with high interest rates anyway (and still seen as safe, even if we just collectively ignored the downgrade).
We could actually see rates just kinda wobble within a range for a few years. Shake out some garbage without causing too much chaos.
The problem still there though would be the staggering amount of low rate bonds on the banks' balance sheets. That have already been underwater for a few years, and would only get far worse. Then the commercial real estate exposure for banks like JP Morgan will get massively hit too. They will keep running into huge problems if they have to conjure trillions out of thin air to pretend the whole banking system isn't insolvent, at the same time they have to raise rates further to keep inflation in check.
Just gonna be a huge fucking mess it seems like to me.
the US dollar has an enormous Metcalf effect that won't go away in the next 9 seconds no matter how broken it appears to be to us
how many of the people in the world have touched a dollar versus a sat?
we the people appear to have an extraordinary ability to export inflation to other countries via our reserve currency and they'll probably keep taking that abuse for a long long time
which definitely gives us some time to stack
Biden continues promising to cancel student debt and insist Ukraine join NATO.
I don’t want to find out.
I hope it will wipe out many weak fiat currencies. Take the oxygen from the banksters. Give hope.
🫠🫠🫠🫠 none of us are ready
Shitcoining will continue until it is no longer profitable. 
Less sats per dollar
it means the number is going up forever, Guy
Rise harder.. not even half chub yet.
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