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If you listen to Luke Gromen (or Mark Goodwin & Whitney Webb albeit they understand less of the mechanics), “Bitcoin is the new oil” essentially means instead of inflating the oil states, they’ll inflate Bitcoin to mop up the glut of treasuries coming on the market via stablecoins.

I don’t like it but I see this as a very plausible course for the Trump regime to take.

They have no choice but to print, and that inflation has to go somewhere. Rather than enriching Arab princes, they’d be better off inflating Bitcoin and hoarding it.

The unintended consequence which nobody talks about is what the world looks like with a newly minted financial elite full of anarchists and anti-state libertarians - I don’t think people have fully thought this through..

aaron lieber 1y ago

Oh for sure I forgot to nostr:npub1tccnjexzau3x5ea8c69v047nqfy3xm4w4yl9j788sts0usl87nhsvce6fh I first heard all this from him then ask ChatGBT to break down the history. If this actually happen it’s gonna be a wild 2 years

aaron lieber 1y ago

Rumor has it Bitcoin is the new oil… and if your wondering what that means with the incoming administration… here is the history of the creation of the petrodollar in1973. It was part of a broader agreement between the United States and Saudi Arabia, whereby Saudi Arabia agreed to price its oil sales exclusively in U.S. dollars in exchange for military protection and economic benefits. This system linked the dollar to global oil trade, significantly reinforcing its status as the world’s reserve currency.

Oil Prices Before 1973

•Pre-1973: Oil prices were relatively stable, as oil was mostly priced under the agreements of the Seven Sisters (major oil companies). From 1948 to 1972, oil prices hovered around $2.50–$3.00 per barrel in nominal terms.

•Adjusted for inflation, this was roughly equivalent to $15–$20 per barrel in today’s terms.

Oil Prices After 1973

•Post-1973 Oil Crisis: After the creation of the petrodollar and the 1973 Arab Oil Embargo, oil prices surged. By the end of 1974, oil prices had increased by nearly 400%, rising to $11 per barrel (about $65 per barrel in today’s terms).

•This marked the end of the era of cheap oil and the beginning of more volatile oil prices, heavily influenced by geopolitics.

The 1973 oil shock underscored the importance of Middle Eastern oil producers in global markets, and the petrodollar system ensured that the U.S. would continue to benefit economically from global oil trade.

aaron lieber 1y ago

When you start to price things in bitcoin terms, you really start to see the hurdle rate companies face.

1-year returns for the “Magnificent Seven” stocks and Bitcoin, both in USD terms and adjusted to Bitcoin (BTC) terms.

1-Year Returns in Bitcoin terms:

CompanyTicker1-Year Return in BTC Terms (%)

Apple Inc.AAPL-113.48%

Microsoft CorporationMSFT-91.95%

Alphabet Inc.GOOGL-70.89%

Amazon.com Inc.AMZN-77.68%

NVIDIA Corp.NVDA+81.61%

Tesla Inc.TSLA-147.47%

Meta Platforms Inc.META-46.25%