Balaji’s #BitSignal bet inspired us to summarize one of the classic Bitcoin pieces that we believe supports his thesis best:
Gradually, Then Suddenly (2019)
> How did you go bankrupt?
> Two ways. Gradually, then suddenly.
https://www.2minutebitcoin.org/blog/gradually-then-suddenly-bitcoin
Our financial system is living on borrowed time.
Central banks continuously break the economy and then rush to "fix" it again.
The same firefighter that extinguishes the fire is the arsonist who set it.
Worse off - their fixes are a mere series of duck tape patches on top of an already broken dam.
Quantitative Easing (QE) and low interest rates are meant to be the solution, but as noticed today - they create an ever-more fragile system that is further hooked on it.
There is not a single fiat currency in history that has not gone to zero.
It is simply a model that doesn't work.
This model is not battle-tested in a digital age like today, where things change rapidly because information travels at the speed of light.
Just this week we saw how ill-prepared banks were to withstand a crisis.
Regulators were completely in the dark - it took a random substack post to expose how insolvent Sillicon Valley Bank was.
When the light is shed on everything, the upcoming flood will be monstrous.
Demonetization of some currencies and hypermonetization of Bitcoin is a logical conclusion.
People do not realize how fast Bitcoin can rise in value. It truly will be a 0 to 1 event as @balajis predicts.
higher price → marketing → adoption → higher price → fomo → etc.
Money becomes more useful and more valuable the more people use it.
As more people begin to hold money, its value and utility both rise. The rational response of everyone else is to try to get more themselves, resulting in a positive upward spiral.
This incentive is at the polar opposite of stocks.
If a stock gets too expensive, its value decreases because an investor buys a smaller share of the company's revenue for more dollars.
Contrastly, $100 of Bitcoin today is much more valuable than $100 of Bitcoin years ago
The cream always rises to the top.
The positive feedback between demand and value means that money is winner-take-all in a free market.
If one currency was ever-so-slightly more preferred than the other, then this imbalance will only grow until the other one collapses.
Simply said: it's a matter of time.
Use the time you have now to educate yourself about Bitcoin and its implications on the world.
Our project attempts to contribute to the goal by making it simpler, sharing summarized 2-minute versions of popular educational pieces on #Bitcoin