Subnostr

The popular “both Bitcoin and the dollar can coexist” narrative making the rounds on podcasts the last couple weeks is weak.

The market isn’t stupid. If given the opportunity to own bitcoin or USD, they’re gonna own bitcoin. If the market owns bitcoin then they won’t own US Treasuries. If they don’t own US Treasuries then the Fed will have to buy up ALL the US treasuries. If the Fed is buying ALL the US Treasuries then the private rate for debt will be much much higher than it already is…and asset values typically propped up by with credit will plummet.

From a first principles basis, there is no way a credit based fiat system can “coexist” with bitcoin. Bitcoin obsoletes the current super cheap credit-based monetary system.

It’s uncomfortable and inconvenient - yes - but that is why bitcoin will ultimately be so valuable.

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Discussion

Reed 1y ago

They coexist right now. And will continue to coexist until the dollar dies. Bitcoin will speed the collapse, but there are a lot of dumb people, stupid companies and corrupt / retarded governments who will continue to use the dollar until they collapse too.

But it's gonna take time. And thank God for that because we need to get a lot more innocent people on the lifeboat before the whole thing goes down.

BoomTown 1y ago

I’m not sure that we’re in a healthy credit issuance market. Nor have we been in one for the last 4 years. All the while bitcoin has grinded to ATHs. Let’s see what happens when they make loans available and affordable again … if I could lever up fiat debt on a real estate transaction … smash buy some btc and use the cashflow to DCA more btc, I would.

Reed 1y ago

Totally agree. Just pointing out that fiat isn't dead yet. It's gonna take some time. But you are right, they cannot coexist forever.